Bridgestone half-year income down, sales up

Tokyo — Bridgestone Corp.'s operating income for the half-year fell 7.3%, despite 5.8% higher sales.

Bridgestone blamed increasing raw materials costs for the earnings decline over the first six months of this year.

Operating income fell to $1.8 billion while sales rose to $15.5 billion, lowering the operating ratio one and a half points to 11.6%. Net income rose 6.9% to $1.17 billion.

The tire division reported similar results — operating income down 6.7% to $1.65 billion on 6.4-percent higher sales of $12.8 billion.

Globally, unit sales of passenger/light truck tires rose 3%, with sales of larger rim diameter (18 inches and larger) tires up 20%. Truck/bus radial sales were up 9%.

Bridgestone said unit sales of passenger/light truck tires in North America fell, but sales of truck/bus tires "increased strongly" vs. 2016.

In Europe, Japan and China/Asia-Pacific, unit sales were up for passenger/light truck tires and truck/bus tires.

Globally, sales of large and ultra-large OTR tires were up 145 and 115%, respectively, over 2016.

Bridgestone's net sales in the Americas rose 5% to $7.68 billion, but operating income for the region dropped 12.9% to $802 million.

Despite the lower first-half earnings, Bridgestone is raising its sales and profit forecasts for the full fiscal year by 1.9 and 2.7% over its earlier projections, yielding a 12.5-percent operating ratio.

The company anticipates fiscal 2017 passenger/light truck tire sales growth of 5% and 6 to 10% for truck/bus tires.

In North America, Bridgestone sees demand for passenger/light truck tires to be flat vs. 2016 in both OE and replacement, whereas demand for truck tires should continue at the 6-10% pace.