Kramer: Raw material costs are an albatross
Goodyear Tire & Rubber Co.'s raw material costs a constant concern, according to Rich Kramer, chairman, CEO and president.
At the 2011 Goodyear Annual Shareholders Meeting in Akron, Ohio, on April 12, Kramer said part of the reason the company more than doubled its segment operating income last year compared to 2009 was the ability to effectively manage the impact of raw material cost increases "in all regions."
"We successfully executed our price/mix strategy, which more than offset the increase in the cost of raw materials for the full year. Continued execution is a must in 2011 and beyond."
Goodyear will raise consumer tire prices in North America up to 8% on May 1. That will be the second increase implemented by the company this year. On March 1, Goodyear raised consumer tire prices in the United States and Canada up to 6%.
Prices on Goodyear's truck tire brands were raised up to 15% on April 1.