Bridgestone net income up 34.7% on sales of Yen 726 bn

ERJ staff report (LMH)

Tokyo - Bridgestone's net income in the first quarter 2012 is up 34.7 percent at Yen 42 billion (Euro 608 million) on sales of Yen 726 billion. Net income is up 12.8 percent at Yen 63 billion, the company said in a 9 May financial report.

In the Tyres segment, net sales were Yen 603 billion. Operating income was Yen 52 billion in the first quarter 2012, with an operating margin of 9.5%. Bridgestone said it worked to maximise sales momentum by introducing “appealing new products” globally.

The strongest geographic regions for the company were Japan and the Americas. In Japan, sales were Yen 301 billion, up from Yen 109 billion in Q1 211. Operating margin was 11.5 percent. Due to large recovery in vehicle production volume, unit sales of tyres for new vehicles increased significantly from the first quarter of fiscal 2011, Bridgestone said.

In the Americas, sales rose to Yen 313 billion from Yen 109 billion year-on-year, and the operating margin was 8.5 percent. The unit sales of passenger and light truck tyres in North America decreased compared to the first quarter of fiscal 2011 due to a decline in the sales of replacement tyres. Additionally, unit sales of tyres for trucks and buses decreased substantially due to a decline in the sales of replacement tyres.

Bridgestone noted that the US economy was gradually recovering, while the financial crisis had had an impact and damaged the European economy. In Europe, unit sales of all tyres decreased substantially compared to Q1 2011, the company said. Bridgestone also noted that Asian economic expansion showed signs of a slowdown, particularly in China and India.

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Press release from Bridgestone