Bridgestone sees €380m cost impact from Middle East conflict

Tokyo — Bridgestone Corp. estimates that the current Middle East situation could have a gross cost impact of around Yen70 billion (€378 million) on its fiscal 2026 performance, driven by rising raw material, energy and logistics costs.

In a 14 May presentation, the Japanese group said the estimate was based on an assumption that crude oil prices, measured by WTI, remain at “$90/bbl by end of the year.”

Describing the effect on its business so far as mainly indirect, Bridgestone said results will be impacted by “rising raw material costs due to higher crude oil prices” as well as “rising conversion and logistics costs due to higher energy costs.”

Bridgestone also warned of a possible “impact on production due to supply chain disruptions.”

The group, however, added there were “no concerns so far,” while stressing that the situation “requires cautious monitoring.”

The tire maker further pointed to a potential “decline in tire demand due to the economic downturn.”

According to the group, direct exposure to the region remains limited, with sales from affected areas accounting for “only approximately 1.5% out of total sales.”

Bridgestone added that it was “closely monitoring the situation” and would implement various measures, including “business cost reduction,” “optimising costs by leveraging our global supply chain,” and “strengthening sales initiatives to minimise impact of the Middle East situation.”

The Tokyo-based group, however, did not change its full-year guidance presented in February, and expects a 2% increase in year-on-year sales to Yen4.5 trillion and adjusted operating profit of Yen515 billion, up 4% year-on-year.

The group noted that the situation in the Middle East “remains fluid," adding that the impact on costs is expected from the second quarter onward, and mainly in the second half of the year.

The group also expects no significant changes from the February assumptions of Yen55 billion gross impact from US tariffs.