Bridgestone Releases 2006 Results

Bridgestone Corporation expects its profits to increase by almost six per cent this year due to improving sales in the U.S. and Europe. In a media statement, Bridgestone said that it projects net income to increase to 90 billion yen (£384 million) as sales rise 3 per cent, to 3.08 trillion yen (£13.2 billion). Net income in 2006 fell 53% to 85.1 billion yen (£364 million) on sales of 2.99 trillion yen (£12.8 billion), compared to a net income of 180.7 billion yen (£772 million) a year earlier.

Operating income dropped 11 per cent to 190.8 billion yen (£815 million) due in part of high prices for raw materials. Charges association with the closure of plants in the U.S. and Chile offset higher sales in 2006, however Bridgestone expects the cost of raw materials to reduce its operating profit by 35 billion yen, down from 135 billion yen last year.

The tyremaker noted that its forecast does not include the earnings of Bandag Inc., which Bridgestone agreed to purchase in December for $1.05 billion. But, Bandag’s sales will be included in Bridgestone’s results in either the first or second quarter, according to president Shoshi Arakawa.