Bridgestone Corp.’s net sales dropped 7.6%, and net income fell more than 20% in the first quarter of 2016 compared to results from a year ago.
Net sales dropped from 893.6 billion yen in 2015 to 825.7 billion yen, while net income fell from 71.5 billion yen to 56.7 billion yen for the period ended March 31, 2016. Based on the exchange rate for the final day of the period, net sales were $7.3 billion, and net income was $504 million. The company’s income-to-sales ratio was 6%.
Globally, tire sales were down about 10%, from 751.7 billion yen in 2015 to 679.7 billion yen in 2016.
In the Americas, passenger and light truck tire sales “increased steadily,” the company said, while truck and bus tire sales decreased due to a drop in sales of original equipment tires. Bridgestone’s net sales in the Americas dropped 9%, to 409.5 billion yen for the first quarter.
In Japan, passenger and light truck tire sales “increased firmly,” while truck and bus tires “increased steadily” in year-over-year comparisons. The company’s net sales in Japan fell 8%, from 283.9 billion yen in 2015 to 260.4 billion yen in 2016.
In Europe passenger and light truck tire sales “increased steadily,” the company said, and truck and bus tire sales “increased strongly.”
Bridgestone restructured its tire business at the start of 2016, and as a result sales from the Middle East and Africa are now included in the EMEA segment. They previously were reported as part of the “other regions.” As a result of the change, the EMEA region showed net sales of 121.6 billion yen, up from a non-comparable 104.3 billion yen last year.
The results were similar in China and Asia, which posted a strong increase in both passenger and light truck tire sales and truck and bus tire sales.
Bridgestone says large and ultra-large off-the-road tire sales were down year-over-year “due to a decrease of demand stemming from tire inventory adjustments at mines.”
The company said its results also were affected by the appreciation of the Japanese yen.