Raw Materials Eat at Bridgestone Australia Results

(Akron/Tire Review) Bridgestone Australia barely posted a profit for the first quarter of 2006 thanks to rising raw material costs, the company said. The company posted after tax profits of $270,000 (Australian dollar), down from $2.1 million for the same period last year, against sales of $124.9 million, up 1.2% from last year.

Bridgestone Australia said the price of natural rubber was especially harsh on its returns, jumping some 25% over the last six months. “And we have also seen significant increases in the price of oil, carbon black, synthetic rubber and steel,” the company said.

The company recently increased prices by 5% to offset the cost increase. Bridgestone said it doesn’t expect to beat last year’s results, and “steps are being taken where possible to minimize any adverse profit impact of high raw material prices.”