Bridgestone, Japan’s largest tyre maker, has raised its annual profit estimate for 2009 by 25% to above market expectations, citing cost cuts.
Bridgestone reports its results for 2009 later this week and told Reuters its operating profit likely came to JPY75bn (US$836m), up from its previous forecast of JPY60bn.
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The latest estimate exceeded the consensus for a JPY66.9bn profit in a poll of 12 analysts by Thomson Reuters I/B/E/S, but was still 43% below its 2008 profit, the news agency noted.
The tyremaker raised its net estimate to a JPY1bn profit, up from a JPY10bn loss. The company earned a JPY10.41bn net profit in 2008.
Bridgestone did not elaborate on the cost cuts behind the upward revision but said it would give details of its earnings and outlook for 2010 when it reports its full-year results.
This was Bridgestone’s fourth earnings revision for 2009.
Rival Michelin has reported EUR106m in 2009 net profit, compared with EUR360m a year earlier, and said it was “extremely vigilant” because of low market visibility and rising raw material prices at the start of 2010.
