Bridgestone Price Hike Won't Cover Costs: Analysts

Bridgestone Americas’ decision to impose a drastic 12% increase of North American truck and bus tire prices in only likely to recoup roughly a fifth of the increased rubber costs the tire manufacturer has had to pay recent, Deutsche Bank analysts reported.

"In view of the likely penetration rate for the price hikes, we calculate an earnings impact of some $244.71 million. Based on price increases announced to date, we look for a ¥100 billion impact in the 2010-11 full year," the analysts wrote in an investors note.

Their view is that the company’s price hikes to date are not enough to offset higher raw materials costs. “Assuming a natural rubber price (RSS3) of $5.8/kg, and a naphtha price of $95/bbl, we calculate a cost increase of 200 billion yen from higher raw materials prices,” the bankers explained. (Tyres & Accessories)

The Goodyear Tire & Rubber Company has named Ryan Waldron as president of the company's Americas business unit, reporting to Chief Executive Officer and President Mark Stewart. He succeeds Steven R. McClellan, who retired on April 1.

"At Goodyear, our customers are at the center of everything we do, and in Ryan Waldron, we have a customer-centric, execution-focused business leader with a deep understanding of both the marketplace and all aspects of our business, as well as a proven track record of delivering results," Stewart said. "I am thrilled to announce him as president of Goodyear's Americas business and have enormous confidence that under his leadership, both the company and our customers will reach even greater levels of success."