TOKYO — Bridgestone Corp. has revised downward its earnings and sales forecasts for the full fiscal year after reporting a 20.6% drop in first-half operating income along with lower sales.
Operating income fell to $1.44 billion on 1.7% lower sales revenue of $15.9 billion, cutting the operating ratio two full points to 9.1%. Net income dropped 11.8% to $1.08 billion.
Bridgestone cited increased costs for raw materials, depreciation and changes in accounting policies for the lower earnings.
At the same time, Bridgestone revised its full-year projection for operating income and sales downward by 8.5% to $3.4 billion and 1.9% to $27.8 billion, respectively. Both also are lower than the fiscal 2018 results.
Tire division operating income dropped 18.6% to $1.44 billion on 1.2% lower sales of $13.2 billion, dropping the operating ratio to 10.9%.
The diversified products unit, which is undergoing a major restructuring, reported an operating loss of $900,000 on 5% lower revenue.
Bridgestone reported lower sales in all regions except Europe/Middle East/Africa, which were unchanged versus 2018. Sales in the Americas fell 0.6% to $7.78 billion. The Asia-Pacific/China region suffered the worst drop at 5.1%.
All regions except EMEA reported double-digit operating income declines, according to the Bridgestone half year results presentation.
For the full fiscal year, Bridgestone amended its forecast, projecting 4% drops in sales and operating income for the Americas businesses.