Bridgestone Profit to Rise

Bridgestone Corporation is set to make a nine per cent gain in net profit to $891.6 million (£490.3 million) by the end of this fiscal year, according to a Japanese newspaper report.

The tyre manufacturer had increased its half-year earnings forecast in May to 45 billion yen, but did not alter its February forecast of a 15 per cent fall in full-year profit to 75 billion yen.

Bridgestone said that the projected full-year decline was due to higher rubber prices and an expected drop in production after a fire at its plant in Japan last year.

Company spokeswoman Naomi Eto explained that the company had no plans to revise the May forecast, but added that first-half earnings would be firm, due to strong overseas sales and a weaker yen.

“Due to strong sales, we raised our interim result forecast in May, but maintained the full-year profit target,” she commented.

The Japanese publication, Nihon Keizai Shimbun, said the company’s high-end products were selling well in Japan, helped by an economic recovery, while price rises in Europe in January, were improving business there.

The business newspaper also said that losses at its tyre production and wholesale business in the US are expected to shrink and revenues will increase three per cent to 2.37 trillion yen.

The company will announce results on 10 August for the six-month period ended in June.