TOKYO (Aug. 8, 2008) — Bridgestone Corp. posted double-digit drops in operating and net income for the six months ended June 30 as rising raw materials and energy costs offset marginally higher sales revenue.
As a result, Bridgestone has cut its earnings expectations for fiscal 2008 by more than 20 percent from those released in February, which already were below the fiscal 2007 performance.
Operating income for the period fell 17.9 percent to $785.7 million on 1.6 percent higher sales of $15.4 billion. Net income fell 29.7 percent to $350.2 million.
In addition to rising costs, Bridgestone cited the slowing economies in Japan, the U.S. and Europe in its results commentary.
Bridgestone said it spent $583 million more in the first half of 2008 on raw materials than in 2007, offsetting almost exactly the amount of added revenue reported during the period.
Operating income in the Americas increased 1.6 percent to $182.6 million on higher selling prices and better product mix. Sales fell 1.6 percent to $6.82 billion on the effects of the slumping U.S. economy.
Elsewhere, the firm's sales were unchanged in Japan, up 4 percent in Europe and up 16 percent in other regions, the latter caused by robust sales in Asia, particularly in China, Bridgestone said.
Bridgestone's Tire Business Staff Reported an 18.8 percent drop in operating income to $582.2 million on 1.7 percent better sales of $12.7 billion.
For the full year, Bridgestone is projecting operating income of about $1.5 billion on sales of $32.7 billion.