Tokyo – Bridgestone Corp. has increased its sales and operating profit estimates for the year 2020 due to a recovery in the business environment following the lifting of Covid restrictions.
The Japanese tire & rubber group now expects revenues to come in at Yen2,890 billion (€23.2 billion), up 7% from Yen2,700 billion estimated at the half-year mark. The sales figure will be substantially lower than Yen3,500 billion reported in 2019.
Bridgestone has also raised adjusted operating profit estimates by 50% to Yen150 billion for the full year, the group announced 12 Nov. This compares against Yen335 billion reported last year.
The Tokyo-based group said the forecast was based on the assumption that global economic activities and the recovery in the tire market are not impacted by a second wave of Covid restrictions in the fourth quarter.
Over the three months to end of September, Bridgestone reported a 33% decline in adjusted operating profit to Yen70 billion, on 10% lower sales of Yen790 billion.
For the first nine months of the year, adjusted operating profit fell 54% to Yen118.4 billion, while sales were down 18% at Yen2,150 billion.
Of these figures, Bridgestone said its diversified products business contributed Yen378.6 billion in sales, with an operating loss of Yen2.5 billion.
Bridgestone said raw materials and price/mix contributed positively to operating profit, while volumes remained below prior-year levels.
Sales in all regions saw double-digit declines, with Japan and Asia-Pacific reporting biggest decreases at 21% and 19%.
However, the tire & rubber group said it saw a “remarkable” recovery in demand for passenger and light vehicle tires in US, Europe and China, particularly in the replacement segment. Japan’s recovery has been "relatively slow", it added.
Bridgestone’s European business reported an operating loss of Yen 9.9 billion, compared to Yen14.5 billion in the first nine months of 2019.