Tokyo – Bridgestone Corp. has revised up its consolidate financial results forecast for the year 2020, now expecting adjusted operating profit to be significantly higher than previously anticipated.
In a 9 Feb statement, the Japanese group forecast sales for the year ended 31 Dec 2020 to come in just under Yen3,000 million, up 3.5% from an earlier forecast in November – though still 15% lower than the prior-year figure.
Adjusted operating profit is estimated to come in at Yen222 billion, up 48% compared to the November forecast, but 34% short of 2019 levels.
Bridgestone said the November forecasts were calculated on the assumption that the fourth quarter would be significantly affected by a decline in demand due to a resurgence in Covid-19 cases.
However, the group said, the impact of the decline in demand was “limited” and a recovery trend of mainly truck and bus tires continued from the third quarter.
“Therefore, we significantly exceeded the planned tire sales at the time of the previous forecast,” it added.
According to Bridgestone, demand for passenger car and light truck tires softened in Europe and the US from November onwards, due to a new wave of Covid-19.
However, sales of high-rim diameter tires remained strong, while OEMs continued a recovery trend.