Bridgestone net income up 35% in Q1

For the first quarter of 2012, Bridgestone has reported net sales of ¥726.2 billion (£5.6 billion), a three per cent increase over the first quarter of fiscal 2011. The company’s operating income amounted to ¥63.0 billon (£490.0 million), an increase of 13 per cent, ordinary income was ¥61.7 billion (£479.9 million), an increase of ten per cent, and net income was ¥42.2 billion (£328.2 million), a year-on-year increase of 35 per cent.

In the tyre segment, Bridgestone said it worked to maximise sales momentum by “introducing appealing new products globally, enhanced strategic products and reinforce fundamental competencies such as specification optimisation, and responded promptly to demand fluctuation of each region.”

Unit sales of replacement passenger car and light truck tyres in the Japanese market remained unchanged from the first quarter of fiscal 2011, while a recovery in vehicle production volumes led to a large increase in original equipment sales. Unit sales for truck and bus tyres remained unchanged in Japan.

 In Europe and North America, unit sales of passenger and light truck tyres decreased compared to the first quarter of fiscal 2011 due to a decline in replacement market tyre sales. This pattern was repeated in both region’s truck and bus tyre segments.

In the Asia Pacific region, unit sales of passenger car and light truck tyres grew firmly compared to the first quarter of fiscal 2011, while unit sales truck and bus tyres strongly increased, led by an increase of original equipment tyres. In China, unit sales of passenger and light truck tyres were substantially down from the first quarter of fiscal 2011 due to a decline in replacement market tyres, and the truck and bus tyre market was also lower.

In the specialty tyre business, unit sales of large and ultra-large OTR radials for construction and mining vehicles strongly increased compared to those in the first quarter of 2011 due to an expansion of production capacity.

As a result, Bridgestone’s tyre segment net sales and operating income for the first quarter of fiscal 2012 totalled ¥602.5 billion (£4.7 billion) and ¥57.0 billon (£443.4 million), respective year-on-year increases of two and four per cent.

The company’s diversified products segment, due to the recovery of demand in automotive parts and in construction business of BSAM Diversified Products business, achieved net sales of ¥127.9 billion (£994.8 million), a nine per cent increase from the first quarter of fiscal 2011. Operating income was ¥6.0 billion (£46.7 million), a 361 per cent year-on-year increase.