Bridgestone H1 net income beats expectations
For the six months to June 30, 2011, Bridgestone Corporation reports net sales of 1,459,125 million yen (£11.7 billion), 1.4 per cent lower than the sales projection announced on May 13 and 5.3 per cent higher than net sales for the first half of 2010. Operating income during the first half of this year was 93,629 million yen (£751.0 million), 30.0 per cent higher than projected, and ordinary income amounted to 91,880 million yen (£737.0 million), 43.6 higher than the projected figure. Net income for the six months to June 30, 2011 was 54,115 million yen (£434.1 million), a 54.6 per cent increase on the May 13 projection and up 21.6 per cent year-on-year.
Bridgestone says the variation between previously projected and actual operating, ordinary and net income during the first half of the year reflects cost reduction initiatives and the strategic sales of tyres with higher profit margins. As a result of this difference, Bridgestone has revised its full-year 2011 consolidated projections. It now anticipates net sales of 3,130,000 million yen (£25.1 billion) in the 12 months to December 31, 2011, 1.9 per cent lower than what it projected on May 13. Of this, 2,640,000 million yen (£21.2 billion) – 84.3 per cent of the total – is expected to come from Bridgestone’s tyre business. Full-year operating income is now projected as 194,000 million yen (£1.6 billion), a 16.2 per cent upward revision, and ordinary income projections have been increased 19.2 per cent to 180,000 million yen (£1.4 billion). Projected net income for the full year is now 115,000 million yen (£922.4 million), an increase of 22.3 per cent.
Unit sales of replacement market passenger car tyres grew significantly year-on-year in Japan during the first half of the year although the effects of earthquake and tsunami caused sales of original equipment tyres to drop substantially. Truck and bus tyre unit sales rose in Japan, buoyed by increases in the replacement sector. Both original equipment and replacement market passenger car and light commercial vehicle tyre unit sales declined during the first half in Europe, however run-flat and UHP tyres bucked this trend. Truck and bus tyre unit sales showed significant year-on-year growth while unit sales of large and ultra-large OTR radials for construction and mining vehicles “significantly exceeded” first half 2010 figures. In North America, passenger and light truck tyre sales declined during the reporting period, dragged down by the replacement sector. However, as was the case in Europe, sales of strategic products such as UHP and run-flat tyres increased. Unit sales of truck and tyres also grew significantly.
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