Bridgestone Quarterly Profits up 4 per cent

Bridgestone Corp. reported first quarter 2006 sales of 704.7 billion yen, up 16.7 per cent compared to the same period in 2005, resulting in a 4 per cent bump in quarterly net profits to $239 million.

The company said that strong global sales helped offset heavy increases in raw material costs. Bridgestone said its tyre sales in Japan rose 10 per cent for the quarter, while sales in the US increased 25 per cent, and sales in Europe increased 13 per cent. Sales elsewhere jumped 37 per cent, Bridgestone said.

Describing the figures as a “strong performance” analysts said they were a result of the weakening yen, increased demand ahead of price increase and good performance by diversified businesses in the Americas. “We expect the shares to perform well in the near term but believe high valuations will limit upside. We raise our target price from 2,300 to 2,800 yen,” the analysts reported.