Final USITC Report on Chinese Quartz Imports June 2019 | Page 191

Cost of goods sold and gross profit or (loss)
With respect to integrated operations, the average COGS to net sales ratio ranged from
*** percent in interim 2018 to *** percent in 2017. For independent fabricators, the average
COGS to net sales ratio ranged from *** percent in 2015 to *** percent in interim 2018 (see
table VI-7). ***. 10
Raw materials
Raw material costs represented the largest component of COGS. With respect to
integrated operations, raw material accounted for between *** percent (in 2016) and ***
percent (in interim 2018) of total COGS during the reporting period (see table VI-1). 11 For
independent fabricators, raw material accounted for between *** percent (in 2015) and ***
percent (in interim 2017) of total COGS during the reporting period (see table VI-3). As shown
in table VI-7, the average unit raw material cost for integrated operations irregularly decreased
from $*** in 2015 to $*** in 2017 and was higher between the comparable interim periods.
The average unit raw material cost for independent fabricators irregularly increased from $***
in 2015 to $*** in 2017 and was lower between the comparable
10
Email from ***, April 9, 2019.
In regards to the final composition mixture of raw materials, Cambria testified that “You start out
with general formulas, but {it takes} trial and error to get {a} esthetic you're looking for {along with} the
resultant physical chemistry that ensures you still have the durability value in the product, i.e.,
resistance, sustain, hardness, this type of thing. . . So it does affect the pricing as you manipulate those
raw materials, but the variances are disciplined and determined by the performance of the product and
so there is a limit to that sway or that drift of raw material formulation.” Conference transcript, pp. 88
(Davis).
11
VI-17