Income up 23% in first nine months of fiscal '11 - Bridgestone

ERJ staff report (LMH)

Tokyo - Bridgestone has said net income for the nine months ended 30 Sept 2011 was up 22.8 percent at Yen 81.9 billion (Euro 761.4 million). Sales for the first three quarters were Yen 2234.4 billion, up to 6.8 percent from the same period in 2010. Income per share was Yen 104.71, up from Yen 85.14 year-on-year.

The Japanese tyre company said that in the first three quarters of the year, the company's operating environment was affected by high raw material prices and the appreciation of the yen. However, Bridgestone said the domestic economy showed signs of recovery after the 11 March earthquake in the Japan. The company noted that already the US and European economies were showing signs of recovery, the trend was weakening. China and India continued to be particularly strong.

In the tyres business, Bridgestone reported an 8-percent increase in sales at Yen 1870.1 billion. Operating income for the segment was up 31 percent at Yen 136 billion. The company said replacement tye sales grew in Japan compared to the previous year, although sales of tyres for new vehicles were “substantially down.” In the Americas, unit sales of passenger and light truck tyres decreased compared to the first three quarters of 2010 due to a decline in the sales of replacement tyres. However, there was an increase in strategic products such as runflat tyres, ultra-performance and winter tyres.

In its diversified products business, Bridgestone reported a 2-percent increase in sales at Yen 375.7 billion and a 22-percent decrease in operating income which fell from Yen 9.4 billion in the nine months ended 30 Sept 2010 to Yen 7.3 billion in 2011.

The tyre giant also announced its projected results for fiscal 2011. Bridgestone forecast sales of Yen 3130 billion, up 9.4 percent year-on-year. Total net income was set at Yen 115 billion, up 16.3 percent and income per share was Yen 146.93.

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Press release from Bridgestone