Bridgestone Revises 2020 Financial Forecast Upwards
Bridgestone Corp. has revised its financial forecast for its fiscal 2020. The Tokyo, Japan-based company expects its revenue to increase by 3.5%. Its adjusted operating profit is expected to climb 48%.
Bridgestone's previous forecast was based "on the assumption that the fourth quarter would be significantly affected by a decline in demand due to the resurgence" of COVID-19, according to company officials.
"However, in the end, the impact of the decline in demand was limited and the demand recovery trend of mainly truck and bus tires from the third quarter continued. Therefore, we significantly exceeded" planned tire sales.
In the passenger segment, Bridgestone reports that sales of large-diameter tires "were strong" during 4Q 2020 and the demand recovery trend for OE tires continued.
"Regarding truck and bus tires, despite the backdrop of the resurgence of COVID-19, demand for replacement tires was particularly firm and recovered above the level of the previous year. The demand recovery trend for new vehicle tires continued in the fourth quarter."
In the OTR segment, "operating conditions varied, depending on the mineral, and while demand weakness was seen for ultra-large tires, demand for small and medium tires, mainly for construction demand, recovered significantly from the drop in demand in the first half."