FRANCE: Michelin hikes OEM tyre prices
Michelin plans to charge automakers more for passenger car tyres as a way to relieve some of the pressure from higher input costs.
"Due to the continuing rise in raw material prices, Michelin will increase the price of its passenger car and light truck tyres sold as original equipment worldwide. The increase, averaging between 6 and 8%, will be effective 1 October, 2006," the tyre maker said, according to Reuters.
The news agency noted that high materials prices have hammered the French company's results and forced it to cut its 2006 outlook - first-half operating income dropped 6.2% to EUR644.7m.
Michelin reportedly said on 28 July it expected a full-year operating margin before non-recurring items of close to 8%, below its previous target of 8.8%, and raised its estimate for the full-year impact of costlier raw materials to EUR800m from EUR540m.
German rival Continental said last week it had as yet no plans to raise car tyre prices but declined to rule out increases should commodity prices develop as they did in the first half, Reuters noted.