Bridgestone Australia – Turnover Down, Profits Up

In their report, the Directors described the Australian passenger tyre market as “intensely competitive, with increasing volumes of cheap imports.” The truck tyre market remained buoyant, with increasing volumes reflecting the strength of the Australian economy.

Raw material prices continue to rise, with prices of natural and synthetic rubber particularly volatile and, says Bridgestone, the situation was exacerbated by the huge increase in demand from China. The situation was helped by a general increase in tyre prices in February, although the directors warned that the full effect of increasing raw material costs is yet to become apparent.

Tyre sales made up the bulk of revenue, but sales of rubber carpet underlay by Bridgestone’s Consumer Products business remained steady. Bridgestone’s 49.45 per cent stake in Bridgestone TG Australia contributed A$ 610,000 towards net profits in the first six months (1H 04 A$ 1.2 m).