Bridgestone reports double-digit gains in first quarter

Tokyo – Bridgestone Corp. has reported double-digit growth in first quarter sales and profits, due mainly to the group’s ‘strategic price management’ and improved sales mix.

The tire & rubber group posted a 16% year-on-year increase in adjusted operating profit to Yen117 billion (€790 million), on 17% higher revenue of Yen1,040 billion, said Bridgestone 15 May.

The 'all-time high revenue increase' was linked to an improved sales mix of ‘premium’ passenger car tires, including large tires of 18-inch and bigger in each region.

Another contributing factor to the “Yen1-trillion” revenue development was sales growth in mining tires, the Japanese group reported.

Improved sales mix, helped by a weaker yen, “fully offset” the negative impact of raw material prices and inflation caused by energy and labour costs.

However, sales volume declined on “weaker demand” in the replacement segment, arising from economic slowdown mainly in the US and Europe.

In terms of regions, Japan and Americas reported strong growth both in sales and operating profit, while Europe and Asia-Pacific saw a decline in profit.

In Japan, adjusted operating profit rose 38% to Yen41 billion, on 13% higher sales of Yen300 billion, noted Bridgestone.

Sales grew 27% in Americas to Yen495 billion with adjusted operating profit up 25% year-over-year at Yen54 billion.

Europe, Russia, Middle East, India and Africa reported a 66% decline in adjusted operating profit to Yen6.8 billion, on 10% higher sales of Yen227 billion.

China and Asia-Pacific profits were down 19% at Yen8.3 billion, as revenue grew 12% to Yen117 billion.

All tire segments reported growth in profits, led by specialities – off-road, aircraft, farm and two-wheeler tires – which reported a 41% rise in profits to Yen32 million.

Bridgestone's passenger car tire segment posted a 6% increase in adjusted operating profit to Yen57 billion, on 20% higher sales of Yen567 billion.

Likewise, operating profit from truck & bus tires grew 14% to Yen24 billion, with sales up 8% at Yen252 billion.

The group's diversified products business – industrial products, air springs and sports – reported a 2% decline in adjusted operating profit to Yen3.4 billion on 15% higher sales of Yen76 billion.