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By Jeff Bennett
Of DOW JONES NEWSWIRES
DETROIT -(Dow Jones)- Goodyear Tire & Rubber Co. (GT) said it will increase its North American consumer tire prices by as much as 6% amid rising raw material prices.
The price increase starts Dec. 1, Goodyear spokesman Jim Davis confirmed Thursday. This is the first increase the tire maker has initiated in about a year.
The Akron, Ohio, company is attempting to head off the upward swing in natural rubber and oil-based materials. The company hinted at its rising raw material costs during its third-quarter conference call in October.
Goodyear has used price increases in the past and remained focused on producing more high-end tires to sidestep some of the financial problems experienced by its rivals. The company, however, expects its fourth-quarter earnings in North America to drop by as much as $125 million amid cost issues in its commercial tire unit.
Shares of Goodyear rose 3.3%, or 45 cents, to $13.98 in trading Thursday.
Source: Dow Jones