Bridgestone Australia half-year profit plummets by 50 percent

Sydney - Bridgestone Australia Ltd has posted a 50.3 percent drop in half-year net profit of A$3.26 million (€1.94 million) compared with the same period last year, blaming rising raw material prices for the reverse.

Revenues for the first six months of this year also suffered, falling 2.7 percent to A$255.3 million (€151.7 million), compared to A$262.3 million (€155.9 million) in 2005.

In light of the results, the tyre maker has announced a 3 percent increase in the price of its products from September.

''This will only partially offset the increase in costs being faced,'' Bridgestone directors stated in their half-year report.

''High levels of competition from imported products have restrained our ability to increase prices and this is not expected to ease in the future.''

The price of raw materials, however, was seen as the main factor in plummeting profits.

''The price of natural rubber in particular has increased by in excess of 25 percent over the past year and this, combined with significant increases in the price of oil, carbon black, synthetic rubber and chemicals have had a major effect on profitability,'' the report stated.

''Steps are being taken to minimise the adverse profit effect of raw material prices, however competitive pressures allow only partial recovery to be possible.''

Full year results were also expected to be lower than in 2005.

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Bridgestone Australia half year report 2006