Bridgestone reports first quarter gains on currency, cost of raw materials

Tokyo – Bridgestone Corp. has seen its first quarter sales and earnings rise year-on-year despite lower overall volumes.

For the first three months of the year, the group reported a 10% year-on-year increase adjusted operating profit to Yen122 billion (€660 million), on 5% higher sales of Yen1,110 billion.

Adjusted OP improved on a Yen14 billion positive impact of lower cost of raw materials, an Yen11 billion impact of price/mix and a Yen5 billion contribution of currency, said Bridgestone 14 May.

These more than offset the negative Yen5 billion impact of lower volumes and Yen13 billion effect of other issues such as tariffs on earnings.

Breaking down the regions, Bridgestone saw sales increased in Japan by 1% to Yen304 billion while adjusted OP rose 26% to Yen53.7 billion.

Here, the group said, revenue and profit increased due to the yen depreciation along with replacement tire sales expansion and improved price/mix.

Asia Pacific, India and China reported an 8% decline in adjusted OP to Yen13.5 billion, due mainly to the impact of ‘one-off items’ the year before.

Sales in the region rose 8% to Yen134 billion, on “solid sales” in passenger car replacement tire segment.

Americas remained the biggest revenue source with sales of Yen532 billion, up 4% year-over-year.

Adjusted OP, however, fell 5% year-over-year in the region to Yen38 billion, due to 'weak business fundamentals and a challenging environment.'

EMEA delivered the strongest growth, with sales up 11% at Yen229 billion, and adjusted OP up 109% to Yen19 billion.

In Europe, Bridgestone said it continued expansion of “premium tires”, mainly high-rim-sized tires.

“Benefits from business rebuilding steadily materialised, resulting in higher revenue, profits and margins,” it said.

In the Middle East, revenue and profit declined year-on-year due to geopolitical impacts in the region.

In terms of product category, the group saw increases across all segments leading with a 7% increase in PC/LT sales to Yen637 billion, with adjusted OP up 8% to Yen67 billion.

The truck & bus segment also reported growth, with sales up 3% year-on-year to Yen241 billion and adjusted OP up 18% to Yen18 billion.

Specialities, including off-road, farm, aircraft and two-wheeler tires, reported a 4% increase in both sales and adjusted OP to Yen162 billion and Yen35.6 billion respectively.

Diversified products business returned to profit with an adjusted OP of Yen1.5 billion, up from a loss of Yen100,000, while sales rose 3% to Yen73.6 billion.