Bridgestone sales up 9% in Q1

In a quarter punctuated by recovering domestic and US markets, a stagnant and unstable European economy, and slowing economic expansion in Asia, Bridgestone Corporation posted net sales of ¥794.5 billion (£5.2 billion) in the three months from 1 January to 31 March, a year-on-year increase of nine per cent. Operating income amounted to ¥74.4 billion (£483.6 million), 18 per cent higher than in the first quarter of 2012, while operating margin rose 0.7 per cent year-on-year to 9.4 per cent. Ordinary income was up 14 per cent to ¥70.1 billion (£455.6 million), and net income rose two per cent to ¥43.1 billion (£280.1 million).

“The domestic economy showed signs of recovery with the rapid correction of the excessively appreciated Japanese yen,” commented Bridgestone in its first quarter 2013 consolidated financial statements. “The United States economy has shown signs of recovery, while the European economy remained stagnant and continuous financial instability discouraged actual business activities. Asian economic expansion showed signs of a slowdown, particularly in China and India. Overall, recovery by many overseas economies was continuously weak.”

From this total, Bridgestone’s tyre business segment earned first quarter net sales of ¥675.3 billion (£4.4 billion), a 12 per cent year-on-year increase, and operating income of ¥67.9 billion (£441.3 million), up 19 per cent from the first quarter of 2012. Operating margin increased year-on-year from 9.5 per cent to 10.1 per cent.

In Japan, unit sales of passenger car and light truck tyres decreased compared to the first quarter of fiscal 2012; Bridgestone says sales were lower due to a decline in original equipment tyre sales. Unit sales of tyres for trucks and buses decreased substantially due to a decline in original equipment tyre sales. 

Unit sales of both passenger and light truck tyres and bus and truck tyres in North America increased steadily compared to the first quarter of fiscal 2012. 

In Europe, unit sales of passenger car and light truck tyres decreased compared to the first quarter of fiscal 2012 due to a decline in original equipment tyre sales. Unit sales of truck and bus tyres increased strongly due to an increase in replacement tyre sales. 

In the Asia Pacific region, unit sales of tyres for passenger cars and light trucks increased strongly compared to the first quarter of fiscal 2012 due to an increase in original equipment tyre sales. Unit sales of truck and bus tyres decreased compared to the first quarter of fiscal 2012 due to a decline in replacement tyre sales. In China, the unit sales passenger car and light truck tyres increased strongly, and unit sales truck and bus tyre sales exceeded those in the first quarter of fiscal 2012. 

In the specialty tyre business, the sales rubber volume of off-the-road radial tyres for construction and mining vehicles increased firmly compared to the first quarter of fiscal 2012.