Michelin to pump up the price of their tires June 1

Greenville-based Michelin North America will raise tire prices by up to 6 percent, effective June 1, on passenger car and light truck replacement tires sold in the United States on the Michelin, BFGoodrich, Uniroyal, private and associate brands as well as Michelin replacement motorcycle tires sold in Canada, Mexico and the United States.Raw materials costs are increasing, said Lynn Mann, Michelin of North America spokeswoman. The company experiences a lag in the increase in raw material costs and the adjustments that are made in contract prices, particularly in the specialty tire business.

The plan to increase pries comes as Michelin Group reported Thursday first-quarter net sales of 3.94 billion euros ($5.2 billion), up 12.2 percent over year-ago numbers, with significant rebounds in almost all tire markets.

Volume for the quarter was up 15.3 percent, with momentum growing late in the three-month period, as market share held firm, the company said.

The company expects to see about 10 percent growth during the remainder of 2010 as the North American and European economies gradually recover. It also anticipates capital expenditures of 1 billion to 1.2 billion euros, primarily for projects in Brazil, China and India.

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