Tokyo – Bridgestone Corp. has posted a 19% year-on-year decline in operating profit to Yen326 billion (€2.7 billion) for 2019, on sales 3% lower at Yen3,525 billion.
Net sales in the tire segment fell 3% to Yen2,953 billion, while operating profit dropped 17% last year to Yen325 billion, according to Bridgestone’s 17 Feb report.
The tire & rubber group linked the decline in operating profit to lower volumes in most major markets, higher conversion costs and negative currency effect.
Unit sales fell for passenger car and light truck tires and truck and bus tires in North America, Europe, China, Asia and Oceania. Volume sales in Japan remained flat.
The group's ‘diversified products’ segment, saw its operating profit almost wiped out, registering a 98% decline to Yen100 million, on 5% lower sales of Yen588 billion.
The segment, which makes chemical and industrial products, construction materials and electronic parts, is currently undergoing a “radical business restructuring,” noted Bridgestone
Overall, the group said its operating environment in Japan was “clouded” by uncertainty of the global economy and other issues, despite a gradual recovery in the domestic economy.
In overseas operations, Bridgestone reported an ‘overall gradual recovery’ despite continued instability on both political and economic fronts.
Amid the unfavourable operating condition, the group is enhancing its brand strategies, including through sponsorship of the Tokyo 2020 Olympic and Paralympic games.
In addition to a “globally integrated” brand strategy, the tire maker said it was also focusing on future competitiveness and differentiation, through offering innovative solutions.