Bridgestone Corp, Japan’s biggest tyre maker, is set to book a 9% gain in net profit to $891.6 million in the year to December, on strong demand for its products at home and abroad, a Japanese newspaper, according to Reuters.
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Bridgestone, which dominates the world’s tyre market along with Goodyear Tyre & Rubber Co., had raised its half-year earnings forecast in May to 45 billion yen, but left unchanged a February forecast of a 15% fall in full-year profit to 75 billion yen, the report noted.
It reportedly said the projected full-year decline was due to higher rubber prices and an expected drop in production after a fire at a plant in Japan last year.
Company spokeswoman Naomi Eto told Reuters the company had no plans so far to revise the May forecast, but added that first-half earnings would be firm due to strong overseas sales and a weaker yen.
The daily Nihon Keizai Shimbun reportedly said the company’s high-end products were selling well in Japan, helped by an economic recovery, while price rises in January in Europe were improving business there.
Losses at its tyre production and wholesale business in the United States are expected to shrink while revenues increase 3% to 2.37 trillion yen, the paper said, according to the news agency.
The company will announce results for the six months ended in June on August 10, Reuters added.
