Meanwhile, the negative impact of manufacturing costs, caused by higher cost of raw materials and inflation, was offset by improvements in price and sales mix, along with "strong expense management, and on-site improvement in production."
Breaking down the regions, Bridgestone reported a 62-percent decline in operating profit in Europe, Russia, Middle East, India and Africa, on 4-percent higher sales.
Unit sales of replacement tires for passenger cars and small trucks (PC/LT), and for trucks and buses "fell sharply" from the previous fiscal year in the region. In particular, Bridgestone said demand for truck and bus tires remained sluggish, impacting sales significantly.
The group said it "pressed ahead" with strategic price management and reductions in low profitability areas, mainly for replacement tires for passenger cars.
While price/mix improved, the group noted a "large deterioration" in processing costs caused by inflation, and production adjustments in response to lower volumes.
Japan performed well, with a 37-percent year-over-year increase in adjusted operating profit.
Unit sales of replacement tires for PC/LT, and trucks and buses were down year-on-year. By focusing on premium products and higher selling prices, however, the group said it mitigated the impact of soaring raw material prices and inflation.
Revenue and profit increased also due to higher sales of mining tires and strong exports of PC/LT and truck and bus tires to overseas markets.
Volumes for OE and replacement PC/LT tires were down year-on-year, while unit sales of tires for trucks and buses were on par with the previous fiscal year.
Sales prices in each country in the region improved with an enhanced sales mix, leading to higher profit.
In the Americas, Bridgestone reported a 16-percent decline in adjusted operating profit to $1.5 billion, on 5-percent higher sales of $14.2 million.
In North America, unit sales of OE and replacement PC/LT tires remained at the same level as the previous year. Bridgestone said unit sales for medium truck and bus tires fell significantly due in part to a slowdown in demand.
Overall, sales prices and mix improved in the Americas region, but processing costs increased due to production adjustments caused by inflation and lower volumes.
Bridgestone added that applying of "financial reporting in hyperinflationary economies" for Argentina had a significant—$71 million—impact on operating profit.
For 2024, Bridgestone said it expected the group's operating environment to "continue to require careful attention due to various factors," such as fluctuations in exchange rates and the prices of raw materials and feedstock, global economic uncertainty, and unstable international political conditions.
Despite the uncertainties, the group expects to deliver a 10-percent increase in adjusted operating profit on 3-percent higher sales.