Bridgestone raises first-half profit despite sales dip

Tokyo – Bridgestone Corp. has increased its first-half adjusted operating profit, due in part to optimisation plans and the ongoing “rebuilding” restructuring process in Europe and North America.

Adjusted operating profit for the six months to 30 June grew 2% year-on-year to Yen235 billion (€1.35 billion), while sales for the period dropped 3% compared to the first half of 2024, said the Japanese group 8 Aug.

Raw materials, volumes and ‘other’ expenses weighed down adjusted operating profit by Yen50 billion, offset by price adjustments, mix, operational efficiencies and currency effects, which together delivered improvements of over Yen58 billion.

The group linked the growth in profitability partly to its performance in North America, where adjusted operating profit grew 6% year-on-year to Yen91 billion, despite a 6% decline in sales to Yen880 billion.

In North America, Bridgestone said it secured a profit increase in the premium tire business as well as the commercial truck and bus (TB) replacement business, including both tires and solutions.

New replacement TB sales increased and the group grew its market share in North America during the period, with volumes up 10% year-on-year.

In the retread segment, Bridgestone said it “maintained high market share and profitability.”

In the North American consumer tire business, the group said it will promote both Bridgestone and Firestone in a ‘multi-brand’ strategy, with a special focus on increasing the presence of the Firestone brand.

Latin America, meanwhile, remained weak as first-half adjusted operating profit fell 58% to Yen900 million. Sales in the region declined 8% year-on-year to Yen146 billion for the period.

The group said it is “reinforcing” the reorganisation process in the region, with capacity reduction and workforce optimisation across Argentina and Brazil.

Bridgestone will also aim to further optimise and promote fixed-cost reductions and improve management capabilities in the region.

In Europe, the ‘rebuilding’ reorganisation process delivered strong profitability, with adjusted operating profit up significantly from Yen3.5 billion in the first half of 2024 to Yen12.8 billion. Sales in the region remained flat at Yen344 billion.

Here, Bridgestone said its focus on premium tires and the ‘reshaping’ of its European business into an ‘integrated and simplified’ structure delivered results.

These included the recent optimisation programmes at two Spanish sites in Puente San Miguel and Bilbao, as well as the closure of a retreading plant in Lanklaar, Belgium.

In the European consumer tire segment, the group said it increased sales and revenue with “significant sales expansion” for large rim-sized tires.

The group reported a 14% year-on-year volume increase in 18-inch and larger tires, while ultra-large tires (20 inches and above) saw a growth of 23% over the first half of 2024.

In the European TB segment, Bridgestone increased sales to break-even levels, with the aim of becoming profitable over the full year 2025.

Asia, Pacific, India and China delivered a 5% growth in adjusted operating profit to Yen29 billion, but revenue in the region dropped 5% to Yen247 billion.

Despite the decrease in sales volume, Bridgestone said profits rose due to sales-mix improvement of replacement passenger car tires and thorough “expense management.”

India and Thailand particularly helped improve profitability, due in part to investments in the Pune plant in India as well as quality enhancements.

Bridgestone also noted strong momentum for its specialties segment, despite lower sales and adjusted operating profit.

Revenue for the segment dropped 3% year-on-year to Yen310 billion, as adjusted operating profit decreased 9% to Yen65.7 billion.

Bridgestone linked the decrease to the farm tire business, which it said experienced a significant profit decrease and a loss, weighing down the overall profitability of the specialties segment.