USITC Staff Report: Quartz Surfaces from India and Turkey staff report USITC | Page 144

of total COGS, while direct labor costs ranged from *** percent (in 2017) to *** percent (in
2019) of total COGS (see table VI-3).
As shown in table VI-7, the average unit OFC irregularly declined from $*** in 2017 to
$*** in 2019 while the average unit direct labor costs irregularly declined from $*** in 2017 to
$*** in 2019 for U.S. producers. With respect to independent fabricators, the average unit OFC
declined from $*** in 2017 to $*** in 2019 while the average unit direct labor costs irregularly
increased from $*** in 2017 to $*** in 2019. 15
Gross profit or loss
With respect to U.S. producers, gross profits increased from 2017 to 2019 because the
increase in total net sales value was greater than the increase in COGS driven by increased raw
material costs. Gross profit margin (gross profit as a ratio to net sales) irregularly increased
from *** percent in 2017 to *** percent in 2018 and *** percent in 2019 (see table VI-1). 16
With respect to independent fabricators, gross profits irregularly declined due to the
decline in net sales values and the increase in COGS. Gross profit margin irregularly declined
from *** percent in 2017 to *** in 2018 and *** percent in 2019 (see table VI-3).
SG&A expenses and operating income
As shown in table VI-7, the SG&A expense ratio (i.e., total SG&A expenses divided by
total net sales value) for U.S. producers and independent fabricators ranged from *** percent
(in 2018) to *** percent (in 2017), and from *** percent (in 2017) to *** percent (in 2019),
respectively. The average unit SG&A expenses for U.S. producers irregularly declined from 2017
to 2019 while the average unit SG&A expenses for independent fabricators increased. ***
15
Estimated value added (total conversion costs (direct labor and other factory costs) as a share of
total COGS) for U.S. producers ranged from a low of *** percent in 2018 to a high of *** percent in 2017
(based on data in table VI-1). Estimated value added for independent fabricators ranged from a low of
*** percent in 2018 to a high of *** percent in 2019 (based on data in table VI-3). Estimated value
added for ***’s fabrication ranged from a low of *** percent in 2018 to a high of *** percent in 2019.
Email from ***, February 24, 2020.
16
Gross profit and gross profit margin excluding *** for U.S. producers in 2018 are $*** and ***
percent, respectively.
VI-18