TOKYO — Bridgestone Corp. reported an increase in revenue during the first half of 2024 but a decline in profits largely from impacts in the Americas.
The Tokyo-based tire maker reported an adjusted operating profit of $1.48 billion, down 3.8% compared with the first half of 2023, on revenue of $14 billion, up 3.6% over the 2023 period.
In the Americas, Bridgestone said a downward trend that began last year "bottomed out" in the first half of this year, and while the company expects the worst part has passed, recovery for the rest of the year likely won't meet expectations forecast in February.
Bridgestone said overstocking of low-end imports has impacted the Americas.
In the Americas, adjusted operating profit increased 3% to $568 million, but adjusted operating profit margin declined 1.5%. The Americas generated revenue of $6 billion in the first half of the year, an increase of 11% from the same period last year.
In North America, both original equipment and replacement demand increased for 18-inch and up rim diameter tires as more consumers are buying larger vehicles compared to last year.
Bridgestone said it expects more growth in that sector and has plans to roll out new products in response. The company said it plans for more large rim-diameter fitments for its top premium brands along with the addition of its Enliten compound mixing technology to those products, which is the company's key to achieving electric-vehicle performance demands.
In North America, low-end imports may have impacted the truck and bus side of things more than the passenger side so far this year. Bridgestone reported declines in truck and bus tire volumes for the first six months of the year, as well as retreads. The company expects the overstocked inventory to lighten over the year and said it will continue to monitor demand.
In June, the tire maker cut one of three ag production shifts at its factory in Des Moines, Iowa, amid lower demand.
In Latin America, Bridgestone said low-end imports have had a big impact resulting in revenue decreases of 35% in Argentina and 17% in Brazil compared to last year. The company plans to utilize its Firestone brand and fixed-cost reductions to turn the year around.
The Europe business "sustained underperformance," according to the company. After declines in the market last year, Bridgestone downsized some production amid weak demand, streamlined its wholesale operations and promoted operational improvements in the retail said.
In Asia/Pacific, Bridgestone increased profits over the last year and improved adjusted operating profit in China, India and Indonesia. The company said it also accelerated business rebuilding in Thailand.
