Increased Q3 revenues at Bridgestone more than compensate for higher raw materials

Tokyo -- Bridgestone Corp's consolidated net sales increased by 9 percent in the first three quarters , to ¥1,920.8 billion [$17 000 million], while operating income increased 11 percent, to ¥153.4 billion [$1355 million] and ordinary income increased 12 percent, to ¥144.7 billion [$1278 million].

Net income for the period grew 98 percent, to ¥159.3 billion [$1407 million]. This increase was due mainly to an extraordinary gain of ¥81.7 billion [$722 million] arising mostly from the return of the substitutional portion of an employee pension plan covering Bridgestone Corporation and some consolidated Japanese subsidiaries to the Japanese government.

A total of $240 million (¥25.9 billion) was recorded as extraordinary loss in the third quarter as Bridgestone Firestone North American Tire, LLC ( Firestone”) agreed to pay the Ford Motor Company the amount to settle all outstanding financial issues associated with Firestone's August 2000 voluntary safety recall and Ford's May 2001 tyre replacement programme.

In the tyre segment, the Companies' operating income in the first three quarters increased 8 percent from the same period in the previous year, to ¥117.8 billion [$1041 million], on an increase of 9 percent in sales, to ¥1,528.8 billion [$13 500 million]. The earnings contribution from this sales growth offset the rising cost of raw materials and other factors. The Companies achieved sales growth by introducing appealing new products on a global basis, increasing their marketing efforts, and improving their product mix. Strong demand in overseas markets also contributed to the sales growth.

In the diversified products segment, the Companies' operating income in the first three quarters increased 24 percent over the same period of the previous year, to ¥35.4 billion [$313 million], on an increase of 9 percent in sales, to ¥413.9 billion [$3700 million]. Business was especially strong in the building materials operations in the United States and in precision components for office equipment in Japan.

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Source1 (Origin) story

Bridgestone profit rises Reuters (Japan)