Bridgestone Projects Significantly Improved Financial Result

Bridgestone has revised its financial projections the first half of the 2010 fiscal year and released its projections for the entire fiscal year. Its revised first half net sales figure of 1,360,000 million yen (£10.1 billion) is 1.5 per cent higher than that previously given on May 7 and projected net income, now 37,000 million yen (£275.0 million), is 37 per cent higher than the May 7 projection. The company now anticipated annual net sales of 2,900,000 million yen (£21.5), slightly higher than the 2,597,002 million yen earned in the 2009 financial year. Operating income, however, is projected to increase 58 per cent to 130,000 million yen (£966.3 million), projected ordinary income is 113,000 million yen (£839.9 million) and net income to skyrocket from 1,043 million yen to 77,000 million yen (£572.4 million). Despite rising raw material costs, the company still anticipates that operating income, ordinary income and net income will exceed the prior year’s results primarily due to increased tyre unit sales and a corresponding improvement in cost per unit due to increased production levels.

Tyre sales are anticipated to increase in both Bridgestone’s domestic and global markets in 2010. The Japanese manufacturer anticipates that sales of passenger car and light truck tyres in Europe will grow more than 10 per cent in the replacement market, while a “slight increase” will occur in its OE business. Truck tyre business in Europe in projected to grow by more than 10 per cent in the replacement market and by up to 60 per cent for OE. Overall, Bridgestone’s tyre sales in Europe are projected to grow by up to 20 per cent. Globally and for both its tyre and diversified products businesses, Bridgestone expects it full year net sales to increase by 12 per cent.