Tire Makers Cite Higher Costs; Set Price Increases
Bridgestone Americas Tire Operations said it was boosting tire prices 8% due to higher energy and raw materials costs, and other tire makers also cited rising costs in their recent earnings statements.
Bridgestone’s increases, effective Monday, affect Bridgestone, Firestone and associated brand passenger, light truck, medium truck, bus, agricultural and off road tire prices, the company said in a statement.
Goodyear Tire & Rubber Co., the largest U.S. tire maker, reported a third-quarter loss in part because of higher rubber costs, Bloomberg reported.
The net loss was $20 million, or 8 cents a share, compared with profit of $72 million, or 30 cents, a year earlier, Goodyear said Thursday. Sales rose 13% to $4.96 billion.
Its raw materials costs, mostly for rubber, rose by $412 million, and Goodyear said it expects such costs to jump 35% in the fourth quarter, compared with a July forecast of 30%.
Cooper Tire & Rubber Co. also boosted its U.S. prices by 6.5% Monday and said it expects raw material costs to climb next year on continued higher rubber prices, Reuters reported.
But the company plans to increase production next year by 10% due to strong demand, the Associated Press reported.
Net income fell to $44.6 million, or 71 cents a share, from $46.8 million, or 84 cents a share, while sales rose 10% to $883 million, Cooper said.
Michelin & Cie. said its third-quarter revenue rose 24%, helped by demand from truck makers and logistics companies in Europe and South America, Bloomberg reported.
Sales advanced rose to about $6.4 billion, Michelin said Oct. 26. The Paris-based company reports its earnings in euros.
Passenger-car tire sales rose 20% to $3.54, while heavy-truck tires surged 27% to $2.15 billion.
Michelin is expanding in India, Brazil and China to reduce dependence on European and North American markets, Bloomberg reported.
