Bridgestone says higher NR costs mean a third less profit

Tokyo - Bridgestone Corp has issued a statement saying net profit for the year 2006 willl be 35 percent lower than previously forecast, due to higher than expected increases in prices of natural rubber, crude oil and other basic materials.

The company said sales would be ¥50 000 million (€341 million) more than it had originally projected, at ¥2 950 000 million, but operating profit would fall by ¥32 000 million, suggesting an increase in costs of around €560 million over the year. The company blamed the reduction on increases in raw material costs and also on the costs associated with the previously-announced, "potential closure of Bridgestone Firestone North American Tire, LLC's Oklahoma City plant"

The company said its revised forecast does not adjust or revise in any way management's projections for consolidated sales and earnings for the first half (January 1 to June 30, 2006) of the current year, which were announced on 1 May 2006.

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Statement from Bridgestone

Bridgestone cuts 2006 profit forecast by 35 pct Reuters (Japan)