Bridgestone profit up 10% in 2023

Reporting its financial performance in the 2023 financial year, Bridgestone Corporation shares that it achieved revenue of ¥4,313.8 billion (£22.8 billion), a year-on-year increase of five per cent; adjusted operating profit was ¥480.6 billion (£2.5 billion), a year-on-year decrease of 0.4 per cent; operating profit was ¥481.8 billion (£2.5 billion), a year-on-year increase of nine per cent; profit before tax was ¥444.2 billion (£2.3 billion), a year-on-year increase of five per cent; and profit attributable to owners of parent was ¥331.3 billion (£1.8 billion), a year-on-year increase of ten per cent.

The company achieved these results against the backdrop of a challenging business environment, particularly in the premium bus and truck tyre sector in the USA and Europe. Despite a decline in global sales volume, Bridgestone focused on restructuring its premium tyre business to enhance its earning power. This involved strategic investments and emphasising high-value-added products.

In the premium tyre segment for passenger cars, Bridgestone managed challenges by implementing strategic pricing and expanding sales of high-rim diameter tyres. Additionally, it introduced high-performance products to enhance sales mix.

Profitability issues in Europe

Despite unexpected weakness in new tyre demand, Bridgestone says it maintained a strong presence in North America with competitive products and its service networks. The introduction of premium products and a focus on tyre new maintenance services for mining vehicles bolstered the company’s overall performance. However, Bridgestone’s European business faced profitability issues due to weaknesses in sales channels and other factors. In Argentina, the company encountered significant negative impacts due to currency devaluation, affecting company-wide performance.

Overall, Bridgestone saw a year-on-year revenue increase partly due to favourable foreign exchange rates and improved sales mix. Adjusted operating profit declined, however, due to increased processing costs and the effects of currency devaluation in Argentina. Adjusted operating profit ratio fell short of the previous fiscal year, indicating the need for Bridgestone to “accelerate our efforts to improve our business structure to respond to changes.”