"We take a long-term view," said Jim Dugan, a spokesman for Peoria, Ill.-based Caterpillar. "The prices of various commodities are a small piece of that."
Drill-Bit Parts
At Dover Corp., about a quarter of annual revenue comes from the oil and gas industry, where rising demand for equipment such as drill-bit parts buoys results. About the same amount is tied indirectly to consumer spending, because the Downers Grove, Ill.-based company also makes refrigerated display cases.
"For us, the increase in oil isn't any different than the increase in steel, or nickel or copper or, goodness gracious, even the increasing cost of health care," CEO Robert Livingston said in an interview. "When we can't cover it with productivity initiatives, yes, we do pass it on to customers."
Manufacturers tend to absorb energy-cost increases as long as they're confident that the new levels are only temporary, because they don't want to change their prices too often, according to FTN Financial's Low. Unlike price surges triggered by market speculation, which tend to fade more quickly, oil- market fallout from the Libyan crisis may not end soon, he said.
"We're talking about revolution that has spread across borders that is, if anything, getting hotter over time," Low said. "It will likely be many months before the situation in the Middle East has calmed down."