Bridgestone reports lower operating profits as volumes decline

Tokyo – Bridgestone Corp. has reported a marginal decline in revenue but a fairly sharp drop in operating profit for the first quarter of 2025, due in part to lower volumes and higher costs. 

Revenue for the three months to end of March slipped 1% year-on-year to Yen1,058 billion (€6.5 billion), while adjusted operating profit fell 7% to Yen111.4 billion.

Operating margin narrowed to 10.5%, down 0.8 percentage points from a year earlier, Bridgestone reported 15 May.

The Japanese tire & rubber group linked the Yen8.8 billion drop in adjusted operating profit to a surge in raw material costs, weighing down profit by Yen17.0 billion.

Price improvements and product-mix positively contributed to earnings by Yen5.0 billion and Yen2.0 billion, respectively, but were partially offset by a Yen2.0 billion negative impact from a decline in volumes.

Manufacturing-related conversion costs and ‘other’ issues had an overall Yen16.8 billion negative impact on earnings – partly offset by a Yen15.0-billion cut in operating expenses and a Yen5.0-billion positive effect of the weaker yen.

The Latin America business had a neutral impact overall, with a positive Yen2.0 billion from Argentina offset by a Yen3.0 billion drag from Brazil.

Bridgestone's passenger car/light truck (PC/LT) segment saw a 4% year-on-year decline in adjusted operating profit to Yen62.0 billion, on flat sales of Yen596.0 billion.

Sales within the truck & bus tires segment remained flat at Yen234.0 billion, while adjusted operating profit rose 10% year-on-year to Yen15.3 billion.

Speciality segment, which include off-road, farm, aircraft and two-wheeler tires, posted a 12% fall in adjusted operating profit to Yen34.0 billion as revenue dropped 1% to Yen156.0 billion.

The diversified products business reported an operating loss of Yen0.1 billion, down from Yen2.7 billion in the first quarter of 2024. Segment revenue declined 8% year-over-year to Yen71.6 billion.

For the full-year, Bridgestone mainted its outlook, expecting to post a 4% increase in adjusted operating income to Yen505.0 billion, on 2% lower sales of Yen4,330.0 billion.

The group estimates higher operating income despite a projected Yen45.0 billion impact from a 25% import tariff on automotive parts in the US.