Bridgestone's profit jumps 64 pc on brisk global tire sales
Bridgestone, the world's largest tire and rubber products maker by sales, reported a 64 per cent jump in profit Thursday for the first nine months of this year on the back of brisk sales of tires.
By Agencies |
TOKYO: Bridgestone, the world's largest tire and rubber products maker by sales, reported a 64 per cent jump in profit Thursday for the first nine months of this year on the back of brisk sales of tires.
Profit at Bridgestone Corp climbed to 82.34 billion yen ($714.1 million; euro494.3 million) for the nine month through September from 50.06 billion yen the same period the previous year.
Sales soared 14 per cent to 2.467 trillion yen ($21.40 billion; euro14.81 billion) during the period from 2.163 trillion yen a year earlier. Bridgestone did not break down quarterly numbers.
By tire sales volume, Bridgestone is competing against Michelin SA of France for the world's top spot, but it surpasses Michelin in global revenue.
Bridgestone's profit in tires were robust, despite the rising cost of oil and other raw materials, as the company introduced new products and invested in overseas production, it said in a statement.
The Tokyo-based company also manufacturers other industrial rubber and chemical products, but tires are its biggest business, accounting for 80 per cent of sales.
Tire sales were flat in Japan, where the auto market has been stagnant, but they were up in North America, Europe and other regions, it said.
Bridgestone kept steady its outlook for the fiscal year ending March 2008 at 109.0 billion yen ($945 million; euro654 million), compared with 85.1 billion yen last year. Sales projection also stood unchanged at 3.370 trillion yen ($29.23 billion; euro20.23 billion).
The absence this year of last year's one-time loss of 17.8 billion yen ($154.4 million; euro106.9 million) for closing two tire plants in the Americas also helped results, the company said.
Last month, Bridgestone said it will spend 250 billion yen ($2.17 billion; euro1.50 billion) annually over the next five years to boost tire production capacity.
Under its latest business plan, Bridgestone hopes to increase annual sales to about 4 trillion yen ($35 billion; euro24 billion) in 2012.
Profit at Bridgestone Corp climbed to 82.34 billion yen ($714.1 million; euro494.3 million) for the nine month through September from 50.06 billion yen the same period the previous year.
Sales soared 14 per cent to 2.467 trillion yen ($21.40 billion; euro14.81 billion) during the period from 2.163 trillion yen a year earlier. Bridgestone did not break down quarterly numbers.
By tire sales volume, Bridgestone is competing against Michelin SA of France for the world's top spot, but it surpasses Michelin in global revenue.
Bridgestone's profit in tires were robust, despite the rising cost of oil and other raw materials, as the company introduced new products and invested in overseas production, it said in a statement.
The Tokyo-based company also manufacturers other industrial rubber and chemical products, but tires are its biggest business, accounting for 80 per cent of sales.
ADVERTISEMENT
Tire sales were flat in Japan, where the auto market has been stagnant, but they were up in North America, Europe and other regions, it said.
Bridgestone kept steady its outlook for the fiscal year ending March 2008 at 109.0 billion yen ($945 million; euro654 million), compared with 85.1 billion yen last year. Sales projection also stood unchanged at 3.370 trillion yen ($29.23 billion; euro20.23 billion).
The absence this year of last year's one-time loss of 17.8 billion yen ($154.4 million; euro106.9 million) for closing two tire plants in the Americas also helped results, the company said.
Last month, Bridgestone said it will spend 250 billion yen ($2.17 billion; euro1.50 billion) annually over the next five years to boost tire production capacity.
ADVERTISEMENT
Under its latest business plan, Bridgestone hopes to increase annual sales to about 4 trillion yen ($35 billion; euro24 billion) in 2012.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
