turns-00042.parquet:26821
ee5c2e48866e76116db5236adegenerate_repetitionAbsentFinal dense release
USER
System: You act as a paraphrase tool. Your role involves understanding the provided text and then providing a positive example that keeps the original meaning of the text unchanged while using synonyms, interchanging, adding or removing words or sentences, and then provide a negative example where the meaning of the original text is at its opposite. Output your response with the following format : Positive : <the positive example> Negative : <the negative example> User: Our business establishes prices with our customers in accordance with contractual timeframes; however, the timing of material and commodity market price increases may prevent us from passing these additional costs on to our customers through timely pricing actions, which may lead to an adverse impact on our profit margins. For example, our gross margin decreased by 1.3% from the year ended December 31, 2021 (24.3%) to the year ended December 31, 2022 (23.0%) as a result of our material and freight costs increasing at a faster rate than the increase in net sales. Additionally, higher material and commodity costs around the world may offset our efforts to reduce our cost structure. Economies around the world have also generally seen significant inflationary pressures since 2021. Although those inflationary pressures began to abate towards the end of 2023, we are still subject to the risk of material and commodity cost increases and there can be no assurances that such cost increases do not return in 2024 and beyond. As of the date of this Annual Report on Form 10-K, we have not entered into any hedging arrangements or agreements with respect to the purchase of the commodities used in our products. While we customarily have contractual pricing adjustment mechanisms with our first-fit customers that attempt to address some of these risks (notably with respect to steel and resins), there can be no Assistant:
ASSISTANT
Positive: Our company sets pricing with customers according to contract schedules; however, the timing of material and commodity market price increases may make it difficult to pass on these added costs to customers quickly, potentially impacting profit margins negatively. For instance, our gross margin fell by 1.3% from December 31, 2021 (24.3%) to December 31, 2022 (23.0%) due to material and freight costs rising more swiftly than net sales. Moreover, rising material and commodity costs globally may counter our cost-reduction initiatives. Since 2021, economies worldwide have generally experienced notable inflationary pressures. Even though these pressures began to ease towards the end of 2023, we remain at risk for increases in material and commodity costs, with no guarantee these costs won't rise in 2024 and beyond. As of this Annual Report on Form 10-K, we have not entered into hedging contracts or agreements concerning the commodities for our products. While we usually have pricing adjustment frameworks with first-fit customers aimed at mitigating some of these risks (especially related to steel and resins), no assurances can be made. Negative: Our business consistently manages to pass on the costs from material and commodity price hikes to customers swiftly, ensuring our profit margins are not adversely affected. For example, our gross margin increased by 1.3% from the year ended December 31, 2021, to the year ended December 31, 2022, due to our efficient handling of rising material and freight costs. Additionally, global material and commodity prices decreasing have accelerated our efforts to streamline our cost structure. Economies have generally seen declining inflationary pressures since 2021, which further stabilized by the end of 2023. We are assured that material and commodity costs will continue to decrease in 2024 and beyond, as of this Annual Report on Form 10-K, we have secured hedging contracts or agreements for the purchase of commodities used in our products. Also, we have robust pricing adjustment agreements with our first-fit customers effectively addressing risks, including with steel and resins.