TOKYO (June 27, 2006) — Bridgestone Corp. is warning shareholders it expects net earnings this year to be 35 percent lower than previously forecast, due to higher-than-expected increases in prices of natural rubber, crude oil and other basic materials.
The company said operating earnings likely will fall by $275 million, a 16.2-percent drop from projections made only nine weeks ago.
The company blamed the reduction on increases in raw material costs and also on the costs associated with the previously announced potential closing of a tire plant in Oklahoma City.
Sales should exceed $25 billion, about 1.7 percent higher than originally projected, in part due to the weaker yen-dollar exchange rate.
The company said its revised forecast does not adjust or revise in any way management's projections for consolidated sales and earnings for the first half of the current year, which were announced on May 1.