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Consumer Tires in North America Are a Bright Spot for Bridgestone in 1H

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Net sales and net income both are down by double-digit percentages at Bridgestone Corp. for the first half of 2016. Net sales dropped 11.3% and net income fell by 14.7% compared to the first six months of 2015.

For the half-year period ended June 30, 2016, Bridgestone recorded net sales of 1.6 trillion yen and net income of 123.3 billion yen, compared to 1.9 trillion yen and 144.7 billion yen for the same period a year earlier.

Based on the exchange rate for the last day of the period, Bridgestone’s sales totaled $160.2 billion and net income was $1.2 billion. The company’s income-to-sales ratio was 7.4%.

The company’s operating income was 218.2 billion yen, down 8.2% from 2015.

Globally, tire sales were down 202.4 billion yen, or 13%, compared to the first half of 2015. In Japan, net tire sales were 519.8 billion yen (down 10%) and in the Americas net tire sales were 822.2 billion yen (down (14%).

Both of the company’s other geographic segments were redefined in 2016, making year-to-year comparisons difficult. (The Middle East and Africa were moved from the 'other' segment and combined with Europe.) But as presented by Bridgestone, net tire sales in the Europe, Middle East, and Africa net tire sales were 243.9 (up 15%). For the company’s ‘other’ geographic segment, net tire sales were 311.8 billion yen (down 27%).

“In the Americas, the unit sales of tires for passenger cars and light trucks in North America increased steadily and the unit sales of tires for trucks and buses decreased compared to the first half of fiscal 2015 due to a decrease in the sales of original equipment tires.”

Bridgestone presented these estimations of tire demand for the first half of 2016. The figures are compared to and based on the previous year.

Original equipment tire demand 1H 2016

  Passenger tires Truck and bus tires
Japan 97% 103%
North America 104% 82%
Europe 105% 112%

Replacement tire demand 1H 2016

  Passenger tires Truck and bus tires
Japan 99% 101%
North America 101% 103%
Europe 102% 103%


The company has revised its outlook for the full year.

“Despite favorable raw materials and feedstock prices and initiatives to reduce expenses, the company revised its full-year consolidated financial projections for the fiscal year ending Dec. 31, 2016, reflecting the appreciation of Japanese yen and the decrease of the unit tire sales from the original plan.”

  Revised 2016 projections Previous 2016 projections % change
Net sales 3.3 trillion yen 3.75 trillion yen -11%
Operating income 453 billion yen 520 billion yen -13%
Ordinary income 434 billion yen 487 billion yen -11%
Net profit 257 billion yen 309 billion yen -17%

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