TOKYO (AP) _ Japanese tire maker Bridgestone Corp.’s profits jumped 61 per cent in the first half of the year as increased consumer spending in America, Europe and Japan offset higher costs for materials.
Bridgestone earned 52.9 billion Japanese yen ($442.2 million) for the six months ending in June versus 32.8 billion yen for the same period last year, the Tokyo-based company said Thursday.
The company, the world’s second-largest tire maker by volume after Michelin SA of France, did not break out its results for the second quarter.
Sales rose 13 per cent to 1.615 trillion yen ($13.5 billion) on continued strength in consumer spending in the United States, strong economic expansion in Asia, and further economic recovery in Europe.
Favorable exchange rates and the introduction of new products also helped to lift sales.
However, operating income in the United States fell to 18.8 billion yen ($157.2 million) from 20.1 billion yen, due to rising costs for raw materials and expanding operations.
Looking ahead, Bridgestone said it expects profit to rise in 2007 on higher sales for car, bus and truck tires in Europe and a projected increase in tire exports worldwide.
Bridgestone said it expects to record net income of 109.0 billion yen ($911.2 million) at year’s end, compared with 85.1 billion yen last year.
The tire maker cautioned, however, that operating conditions will remain challenging due to the high cost of raw materials.
autonews24h.com
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