Tokyo - Bridgestone Corp.'s net income fell almost 70 percent in the nine months to 30 September 2006, while operating income for period slipped 19 percent. The company said the drop in profits was due to the "continued global upward movement in the cost of crude oil and other raw materials."
In the nine-month period, Bridgestone recorded sales growth of 13 percent, to Â¥2163 000 million (â‚¬14 491 million). Operating income was Â¥123 700 million, yielding an operating margin of 5.7 percent. Net income was just Â¥50 000 million, compared with Â¥159 300 million in the corresponding period of 2005.
In the tyre segment - which contributed 80 percent of corporate income - operating profit fell 32 percent to Â¥85 800 million, yielding an operating margin of 5.0 percent.
Diversified products performed much better, showing sales growth of 12 percent, to Â¥462.2 million and an increase in operating profit. This unit reported operating profits of Â¥37 900, up seven percent on the same period a year ago. Operating margins in the unit were 8.2 percent. Bridgestone said business was especially strong in automotive components.
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