Bridgestone profits fall on higher sales

Tokyo -- Bridgestone Corp. has announced its consolidated business and financial results for the fiscal year ended 31 December, 2006. Net sales increased 11 percent over the previous year, to ¥2,991.2 billion [$25.1 billion]. Operating income decreased 11 percent, to ¥190.8 billion [$1,602 million] due in part to the significant impact of high prices for natural rubber, crude oil and other raw materials despite the exchange gain on the weaker Japanese Yen. Ordinary income decreased 19%, to ¥159.5 billion [$1,339 million], and net income decreased 53%, to ¥85.1 billion [$714 million].

In the tyre segment, the Companies' sales in fiscal 2006 increased 11 percent over the previous year, to ¥2,396.9 billion [$20.1 billion], while operating income declined 17 percent, to ¥139.0 billion [$1,167 million], due in great part to the significant impact of high raw material costs.

In the diversified products segment, the Companies' operating income in fiscal 2006 increased 13 percent over the previous year, to ¥51.7 billion [$434 million], on an increase of 11 percent in sales, to ¥626.8 billion [$5.3 billion]. Business was especially strong in the commercial building materials operations in the United States and in automotive components in Japan.

Sales in Europe increased 14 percent, to ¥418.4 billion [$3.5 billion] due in part to the exchange gain on the weaker Japanese Yen, while operating income decreased 24 percent, to ¥14.8 billion [$124 million], due mostly to the significant impact of rising raw material costs and expenditures related to reinforcing sales and improving logistics efficiency. Unit sales of passenger car and light truck tyres remained on a par with the previous year in both the original equipment and replacement sectors. Unit sales of truck and bus tyres exceeded the prior year in both the original equipment and replacement sectors.