Bridgestone's net income for Q1 fell 18 percent on higher costs

ERJ staff report (DS)

Tokyo -- Bridgestone Corp. reported higher sales, but lower profits for the three months ended 31 March 2008. The company blamed the fall in profit on higher costs of raw material and energy.

The company reported a 4 percent in crease in sales for the period, to Yen 797 800 million (Euro 4995 million), from yen 769 900 a year earlier. Operating income also increased slightly, to yen 52 400 million, while net income fell to Yen 22 900 million, compared with yen 28 100 million a year earlier.

Commenting on the results, Bridgestone said, "A defining trend in the business environment was the persistent upward movement in the cost of raw materials."

The company also commented on the on-going investigation into marine hose cartel activity. The company said it can confirm that inappropriate payments were made in connection with the sales of marine hose and other industrial products. The company said, " the investigation is continuing and could expand."

Bridgestone noted that it has made no financial provision for any related liabilities at present.

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Press release from Bridgestone