Continental AG To Raise Commercial Vehicle Tire Prices May 1

Automotive supplier Continental AG (CON.XE) said Wednesday it will raise prices for commercial
vehicle tires in Europe from May 1 due to "dramatically increased" raw material costs.
  Prices for Continental-brand tires will rise 6%, while the Uniroyal and Semperit brands will rise up to 10%. Prices of
 Barum and Matador brands, mainly sold in eastern Europe, will rise by up to 12%.
  From Jan. 2009 to Feb. 2011 the price of natural rubber has quadrupled, touching a high of than $5.60 a kilo, a
company spokeswoman said in an emailed statement.
  Commercial vehicle tires are more strongly affected than car tires as the average truck tire contains 15 times more
natural rubber than the average car tire.
  Continental estimates the higher price of natural rubber will cost it EUR700 million this year if rubber remains at
the current level of $5.50 a kilo.