Materials costs, non-tire unit hit Bridgestone results

Tokyo – Bridgestone Corp. has seen a 23% year-on-year decline in first quarter operating income on 1% lower sales, the company reported 13 May.

Operating income fell to Yen77.1 billion (€625 million), mainly due higher raw materials costs and an ongoing restructuring within Bridgestone’s diversified products unit.

Bridgestone is currently in the middle of restructuring its diversified products operations to focus more on “solution” packages, the company told ERJ in November last year.

The unit manufactures conveyor belts, hydraulic hoses, rubber tracks, seismic shock-absorbers, automotive parts, construction materials and sports equipment.

At the group’s tire division, operating income fell by 17.4% to Yen79.5 billion, while the diversified products’ unit reported a Yen2.4-billion loss for the period.

Net sales fell 1% to Yen848.2 billion for the first three months of the year, with both tires and diversified products units posting lower sales compared to the previous year.

Tire sales fell 1% to Yen710 billion, while revenue dipped 5% at Yen141.6 billion within the diversified products unit.

While group-wide sales were generally flat in most regions, Bridgestone’s revenue China and Asia-Pacific dropped 4% to Yen153.7 billion.

Operating income registered double-digit declines in all regions except Europe, Middle East and Africa.