TOKYO (Feb. 23, 2012)—Bridgestone Corp. management is predicting double-digit growth in earnings this year on the positive effects of higher selling prices, improved product mix and increased unit sales.
For the year ending Dec. 31, Bridgestone forecasts 41-percent higher operating income of $3.5 billion and 63-percent greater net income of $2.2 billion.
Sales are expected to rise 7 percent to more than $40 billion, with both the tire and non-tire business units contributing nearly equally to growth, the company disclosed in its fiscal 2011 sales and earnings report.
That level of earnings increase represents a two percentage point gain in the operating earnings ratio, to 8.3 percent.
Bridgestone expects the greatest growth, 10 percent, to occur in its “other” geographic regions, Asia/Pacific primarily. Growth of 6 percent is expected in the Americas and Japan, with Europe contributing 2-percent growth.
For 2012, Bridgestone management is shooting to achieve a return on assets of 6 percent, primarily through lean asset management, expansion of strategic products and reinforcing fundamental competencies.