Bridgestone: Risk of guidance overshoot, says analyst
Commenting on Bridgestone’s second quarter financials, particularly the operating profit of 133.8 billion yen outstripping guidance of 118 billion yen and expectations of 50 per cent year-on-year growth, Deutsche Bank analyst Takashi Moriwaki says the bank sees “risk for a guidance overshoot as profitability is on an uptrend thanks to stable selling prices and declining raw material costs.”
Moriwaki notes that, in its guidance, Bridgestone expects replacement tyre demand to increase in the second half of 2012, shipments in regions aside from Europe in China to be at similar levels to demand, production to increase three per cent year-on-year in the second half to 970,000 tons, and that price effects in the first half were greater than initially projected.
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