Bridgestone profits up 67%

It turns out that 2012 was a good year for Bridgestone Corporation. The Japanese tyre and rubber products manufacturer achieved a 66.8 per cent increase in net income during the period, taking in a healthy 171.6 billion yen (£1.18 billion). This jump in profit was achieved despite sales remaining relatively level; these increased 0.5 per cent to 3,039.7 billion yen (£20.94 billion). Operating income rose 49.5 per cent to 285.9 billion yen (£1.97 billion) and operating margin increased from 6.3 per cent to 9.4 per cent.

Tyre products are the mainstay of Bridgestone’s business and earned the company net sales of 2,557.2 billion yen (£17,62 billion), slightly above 2011 sales. Operating profit from tyres was 260.4 billion yen (£1.79 billion) and the operating margin 10.2 per cent). The Americas was Bridgestone’s most lucrative region in terms of overall sales (both tyre and non-tyre), increasing 3.28 per cent to 1,330.9 billion yen (£9.17 billion). Number two region for sales was Japan, where sales dropped 0.8 per cent to 1,218.7 billion yen (£8.40 billion). Sales in Europe dropped 15.6 per cent during the year to 348.8 billion yen (£2.40 billion).

Looking ahead to 2013, Bridgestone projects that demand for original equipment passenger car and truck tyres will remain the same as 2012 in Europe, while replacement passenger car tyre demand will decreased slightly to 99 per cent of the 2012 figure and demand for truck tyres will rise to 104 per cent of last year’s demand. In Japan, passenger car tyre demand is expected to be only 93 per cent of that in 2012 for both the original equipment and replacement segments, while original equipment truck tyre demand should be 101 per cent compared with last year and replacement demand 94 per cent. The company anticipates net sales of 3,550.0 billion yen (£24.46 billion), up 17 per cent year-on-year, operating income of 382.0 billion yen (£2.63 billion), an increase of 34 per cent on 2012, and a 10.8 per cent operating margin.