TOKYO (Aug. 10, 2010)—Continued sales and income improvements in the second quarter have prompted Bridgestone Corp. management to raise the company's earnings outlook for fiscal 2010 by about 20 percent.
Rising demand for tires and industrial goods worldwide during the quarter ended June 30 helped boost Bridgestone Corp.'s first-half sales 15 percent to $15.1 billion and propelled the company $486.4 million into the black. Operating income jumped to $857.1 million, or 5.7 percent of sales, from a loss last year.
The improvements prompted Bridgestone management to raise the firm's operating and net income forecasts for fiscal 2010 to $1.7 billion and $995 million, respectively, representing 20.8- and 18.2-percent boosts over the May forecast. The sales projection was unchanged at roughly $31.7 billion.
Bridgestone cited the impact of its efforts to reduce expenses and improve cost competitiveness for its more optimistic earnings forecast. Management cautioned that there will be challenges in the second half, however, including economic uncertainties and high raw materials prices.
In the first half, Bridgestone's Tire Business Staff Reported $771.6 million in operating profit on 15.8-percent better sales of $12.5 billion. Bridgestone cited increased unit shipments in nearly all of its segments and geographic operating areas for the improvements.
Diversified products edged back into the black on 11.2-percent higher sales of $2.67 billion.
Bridgestone Americas reported a fourfold increase in operating income to $270 million on 12.6-percent higher sales of $6.64 billion. The company anticipates growth of more than 10 percent in North America in both the consumer and commercial tire segments over the 2009 levels.
To continue its momentum, Bridgestone said in the second half it will consider revising tire prices based on market conditions and product mix while also taking into account changing raw materials prices.