Despite lower income, Bridgestone anticipates stable 2017 profits

While sales at Bridgestone Corporation were 8.9 per cent higher year-on-year in the first nine months of 2017, increasing raw material costs contributed to lower income. On the basis of its performance during quarters one to three of the current fiscal year, the company has decreased its full-year projections for sales and income.

Net sales in the nine months to 30 September amounted to 2,663.0 billion yen (£17.9 billion). Operating income for the nine-month period was 299.7 billion yen (£2.0 billion), down 9.0 per cent year-on-year, while the operating income was 11.3 per cent (13.5 per cent in Q1-3 2017). Ordinary income declined 9.9 per cent to 288.6 billion yen (£1.9 billion). Profit attributable to owners of parent rose 8.1 per cent to 197.7 billion yen (£1.3 billion).

Within Bridgestone’s tyre segment, unit volume sales increased for almost all products and regions during the first nine months of the year; the sole exception to this trend was volume sales of passenger car and light truck tyres in North America. Tyre sales volumes in Europe for both car and truck tyres increased “steadily” during the nine-month period.

Sales derived from tyres came to 2207.4 billion yen (£14.8 billion) in the nine months to 30 September, 82.9 per cent of the company total. Net sales from tyres were 9.7 per cent higher than in the first nine months of 2016. Operating income from tyres was 274.4 billion yen (£1.8 billion), 8.6 per cent lower than a year ago.

For the third quarter of 2017, Bridgestone Corporation’s net sales came to 920.2 billion yen (£6.2 billion), 15.3 per cent higher than a year earlier. Sales from tyres were 767.6 billion yen (£5.1 billion), up 16.3 per cent. Quarter operating income, at 97.3 billion yen (£652.7 million) was down 12.4 per cent year-on-year, and the margin was 10.6 per cent (13.9 per cent in Q3 2016). Profit attributable to owners of parent for the quarter was 65.9 billion yen (£442.1 million), up 10.4 per cent on a year earlier.

Bridgestone now expects to achieve full-year net sales of 3,650 billion yen (£24.5 billion), 50 billion yen less than it previously projected. It has also adjusted its projected operating income downward from 464.0 billion yen to 430.0 billion yen (£2.9 billion), and ordinary income from 439.0 billion yen to 400.0 billion yen (£2.7 billion). Projected profit attributable to owners of parents has increased by a billion yen to 290.0 billion yen (£1.9 billion).

Further information on Bridgestone’s current and past fiscal performance can be found in the Tyrepress.com company profiles and reports section.