Asia slows Bridgestone as sales nudge up

ERJ staff report (TP)

Tokyo – Bridgestone Corp. has reported a 2.6-percent increase in net sales to ¥1,750,259 million (€12.8bn) for the first six months of 2014, while its operating income for the half rose by 17.2 percent to ¥223,152 million. 

In the tire sector, net sales and operating income in the first half of fiscal 2014 totalled ¥1,469.2 billion and ¥202.0 billion, representing increases of 1 percent and 17 percent from the first half of fiscal 2013, respectively.

Bridgestone reported a strong increase in unit sales of tires for passenger cars and light trucks in Japan, ahead of a tax increase. Sales of tires for trucks and buses also increased substantially compared to the first half of fiscal 2013.

In North America, Bridgestone noted a steady rise in unit sales of tires for passenger cars and light trucks, while demand from the truck and bus sector “increased strongly” compared to the first half of fiscal 2013.

In Europe, meanwhile, unit sales of tires for passenger cars and light trucks increased "firmly", while sales of tires for trucks and buses increased "steadily" compared to the first half of fiscal 2013.

Asia Pacific sales of tires for passenger cars and light trucks decreased compared to the first half of fiscal 2013 as well as for tires for trucks and buses. In China, however, sales of tires for passenger cars and light trucks "increased substantially" compared to a year ago.

Within the speciality tire business, the sales volume of off-the-road radial tires for construction and mining vehicles decreased compared to the first half of fiscal 2013 due to a decline in the demand of tires for mining vehicles.

Looking at its markets overall, Bridgestone said the domestic, US and European economies all showed some signs of gradual recovery – the US due to “an increase in consumer spending”.

However, it noted that “the Asian economic expansion continues to slow down, particularly in China and India”.

More details in 12-page PDF report.