Australia: Bridgestone Says Imports Affecting Domestic Sales
Bridgestone Australia Ltd says sales of locally made tyres remain under intense pressure from cheap imports. The Australian wing of the Tokyo-based company reported a 10 per cent rise in annual net profit to AUS$10.30 million for 2005 (£4.38 million, 6.38 million euros).
The company’s pre-tax profit fell to $14.88 million, a $740,000 decline. Bridgestone said the reduction in pre-tax profit was largely due to rising raw material prices, which had only been partially offset by increased selling prices. Revenue fell three per cent to $520.36 million in the year-ended 31 December 2005.
“Sales of locally-made tyres remain under intense pressure from imports and the ability to lift prices to cover increasing costs has been constrained,” the company said. “Sales of Bridgestone branded products remained strong, however they are under increasing pressure from the wide range of cheap imports becoming available in the Australian market.”