Goodyear offsets rising material costs, inflation via price increases

By Devika Patel

Knoxville, Tenn., June 15 – Goodyear Tire & Rubber Co. has seen demand remain stable in the past two months and expects this to continue, but management recently needed to implement pricing increases due to rising raw material costs and inflation.

“We continue to be in a pretty stable demand environment, having recovered to pre-pandemic levels particularly in our replacement markets,” executive vice president and chief financial officer Darren R. Wells said at the Deutsche Bank Global Auto Industry Conference on Tuesday.

“A number of parts of the world [are] still obviously experiencing some lower volume in the original equipment space, but demand has remained consistent from early May.

“We continue to see the cost pressure from both raw materials and raw material inflation, so that has remained with us and we’ve obviously been able to offset raw material costs, in fact offset most of the other inflation we’ve experienced as well.

“We expect to continue to be able to do that as we move from Q1 into Q2,” he said.

The increased costs from inflation have largely been offset by a few pricing increases since May, Wells said.

Goodyear is an Akron, Ohio-based tire maker.

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