Bridgestone sales, profit up despite raw material cost impact

Tokyo – Bridgestone has reported strong results for both the third quarter of 2021 and the first nine months of the year, helped by increasing demand in the replacement passenger car tire segment.

Adjusted operating profit for the three months to end of September rose 54% year-on-year to Yen101 billion (€773 million), on 12% higher sales of Yen833 billion, reported Bridgestone 11 Nov.

Nine-month operating profit was up 168% year-on-year at Yen278 billion, on 20% higher sales of Yen2,400 billion.

Bridgestone said sales of original equipment passenger car and light truck tires slowed down in the third quarter due to a decline in automotive production caused by continued chip shortages. 

Replacement sales, however, were strong “resulting in significant increase in sales and profit compared to the previous year,” the group added.

Truck & bus tire sales were strong, particularly in North America, while off-road tires witnessed a strong recovery sequentially, due to demand from construction and mining sectors.

Over the nine-month period, Bridgestone said it offset the Yen52 billion impact of raw material inflation by a combined Yen66 billion improvement in selling price and mix. 

Higher volumes for the first three quarters contributed Yen87 billion to operating profit, while production efficiencies and foreign exchange rates had positive impacts of Yen87 billion and Yen12 billion respectively.

Operating expenses, including of ocean freight rate increases, had a Yen50 billion negative impact on operating profit.