Goodyear expects raw material costs to surge by up to 30%

29 April 2011 15:42  [Source: ICIS news]

HOUSTON (ICIS)--Goodyear expects its raw material costs to increase by up to 30% year on year in the remainder of 2011, the US-based tyre major said on Friday.

At the same time, Goodyear sees continued growth in the global tyre industry, it said.

Goodyear’s full-year 2011 unit volumes could increase by up to 5% year on year, it said.

In the three months ended 31 March, Goodyear saw raw material costs surge by $385m (€258m) from the 2010 first quarter.

However, the company “made great progress in offsetting higher raw material costs through improved price/mix and in driving sales of new, innovative products,"  CEO Richard Kramer said.

Goodyear’s first-quarter net income was $103m, compared with a net loss of $47m in the 2010 first quarter.  

First-quarter sales were $5.4bn, up 27% from the 2010 first quarter and marking the highest ever sales achieved by the company in any quarter, it said.

Tyre unit volumes totalled 46.8m, up almost 7% from the 2010 first quarter.

($1 = €0.67)

By: Stefan Baumgarten
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly