Bridgestone has reported a sharp jump in its full year profits as revenues grew by double digits. However, it was not all good news at the Japanese-based tyre group as forecasts for 2008 suggested troubling times ahead.
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For 2007, Bridgestone reported a 31% increase in operating profit to JPY249.96bn ($US2.189bn). Net profit was up 55% to JPY131.63bn, while revenue grew 13% to JPY3.390 trillion.
In a statement, the company said that the weak yen and efforts to sell higher margin tyres had helped offset higher prices for natural rubber and other raw materials.
However, the company added it was forecasting a sharp drop in profits in 2008 as costs continue to climb.
Bridgestone said that it expects operating profits to fall some 22% in 2008, whilst net profits will fall 32%. Sales are expected to rise just 5%.
The price rises for natural rubber and other raw materials are estimated to lead to a cumulative cost increase of 1.33 trillion yen over the six years from 2003, of which JPY870bn would be offset by raising tyre prices.
