Bridgestone OP beats analysts expectations
With Bridgestone having announced that first half operating profits grew 43 per cent year-on-year to 133.8 billion yen, the tyre manufacturer has upped its full-year operating profit guidance. Bridgestone had predicted that it would achieve 118 billion yen by this measure, with Deutsche Bank estimating nearer 136 billion yen. As a result the financial analysts now report that the company has lifted its full-year operating profit projections and is now looking at 50 per cent year-on-year growth to 287 billion yen (previous predictions were 269 billion yen, with Deutsche Bank expecting 316 billion yen).
The reasons behind the upgrade as said to be: expected improvement in replacement tyre demand in the second half, according to the bank. Passenger car tyre demand is prediced to increase 4 per cent year-on-year in North America (-2 per cent in the first half of 2012), -7 per cent in Europe (-13 per cent in the first half), and -1 per cent in Japan (-5 per cent in the first six months).
However, truck tyre demand is expected to be down 5 per cent year-on-year in North America, but up 15 per cent in Europe as well as up 12 per cent in Japan.
Bridgestone also plans to increase second half production by 3 per cent year-on-year to 970,000 tonnes. However production is expected to remain lower than shipment volume in a move likely to be designed to ensure inventories are worked down.
Another boon for Bridgestone was raw material costs which became a profit-boosting factor from between April and June, boosting first half profit by 17 billion yen year-on-year, according to Deutsche Bank.