Bridgestone Australia Predicts Poor 2005 Results
Bridgestone Australia is predicting that its 2005 results will suffer “significantly” because of a rise in raw material prices, reports Fairfax news site.
The manufacturer recorded a $10.86 million (£4 million) net profit in 2004, which was up 1.9 per cent on the previous year.
“As predicted in our October and December 2004 stock exchange releases, raw material prices increased significantly in the last quarter of 2004,” Bridgestone said.
“Directors remain concerned about the continuing upward trend in raw material pricing and expect 2005 results to be significantly adversely affected,” said a company source.
Group net profit before tax for 2004 was AUD$17.45 million (£7 million) compared to $14.37 million in 2003 and included a $3.17 million profit on the sale of a property in Sydney in June 2004.
The result also included a tax expense impact of $1.93 million in relation to a $3.6 million payment to the Australian Taxation Office in settlement of a taxation dispute pertaining to sale and leaseback transactions entered into in 1990.
Net sales for 2004 rose 1.6 per cent to $536.3 million (£217 million). The sales growth is reported to have come entirely from tyres. Sales of locally-made tyres increased marginally in 2004 whilst sales of imported Bridgestone-branded tyres grew strongly, writes the Sydney Morning Herald.