TOKYO (Jan. 29, 2009)—Bridgestone Corp. has revised downward its net profit projections for fiscal 2008 to reflect the size of a fine imposed on it by the European Commission for its participation in a marine hose cartel.
Bridgestone lowered its projection by 37.5 percent to about $76 million after being notified the EC was imposing a fine of $77 million on Bridgestone.
The company said it already had factored in an allowance in its earlier projection for the fine, but the fine was “substantially” larger than the company had expected. The EC said it had increased the fine imposed by 30 percent because Bridgestone had jointly led the cartel.
Net income of $76 million would be a 94-percent drop from the fiscal 2007 figure and would be only 0.2 percent of sales.
Bridgestone did not change its earlier forecasts for sales or operating income, which should be roughly $31.4 billion and $1.14 billion, respectively.