Bridgestone revises down earnings forecast on ‘US economy deterioration’

Tokyo – Bridgestone Corp. has revised down its earnings forecast for the year, citing lower volumes and weaker economic conditions in the US.

The group now expects adjusted operating income of Yen490 billion (€2.73 billion), down 3% from the Yen505 billion forecast announced in February.

Group sales, however, are projected to increase 0.7% to Yen4,360 billion, Bridgestone said 12 Nov.

The downward revision reflects a "more-than-expected" deterioration in the US economy and a 'significant decrease' in new truck and bus tire sales in North America, the group said.

“This has led to a decline in export volume from Brazil to North America, resulting in the deterioration of our Brazilian business,” Bridgestone added.

The group also noted that the US consumer confidence index turned downward in the third quarter, with retail improvement in the region now “slower than initially forecast.”

In addition, Bridgestone said its performance was affected by cyber incidents in North America.

“Considering the impact of these deteriorating business environments on financial results, the company has decided to revise its forecast,” it said.