TOKYO — Bridgestone Corp. reported healthy improvements in fiscal 2021 sales and earnings over 2020, results that support the firm's efforts to rebuild group earnings power.
Adjusted pre-tax operating earnings rose 90.1% to $3.59 billion on 20.4% higher sales of $29.6 billion, yielding a 12.1% operating ratio. Net income also was $3.59 billion, versus a net loss in fiscal 2020.
In reporting it fiscal 2021 results, Bridgestone said it already has achieved the 2022 goals of its three-year mid-term business strategy, which was launched in February 2021.
"Global tire sales grew substantially, especially in the premium segment, and the company achieved significant year-on-year growth both in revenue and profit," the group stated.
The operating profit also was higher than that registered in 2019, although sales were slightly lower, attributable in part to the firm's restructuring and divestments of the pat year.
Bridgestone noted that its sales benefited from "firm" demand for replacement market tires driven in part by shortages of new vehicles and "brisk" demand for pre-owned vehicles.
The operating profit improvement was helped by increased volumes, cost conversion, pricing and mix as well as foreign-currency gains, Bridgestone said.
These factors more than offset negative impacts of $72 million for freight costs and $92 million in higher raw-materials costs.
Bridgestone is forecasting 8% earnings growth for fiscal 2022 on 12% higher revenue.
As part of the mid-term plan, Bridgestone decided to divest its anti-vibration rubber business and chemical products solution business, helping its diversified products division return to profit.
By business unit, Bridgestone said sales of passenger and light vehicle tires and related businesses rose 19.3% to $15.8 billion, while operating profit more than doubled to $2.25 billion.
The truck and bus tire business unit reported a 54.4% growth in operating profit to $801.5 million, on 23.2% higher sales of $7.41 billion.
The specialties unit, comprising two-wheeler, construction, farm and aircraft tires, reported a 90% increase in operating profit to $707.7 million, as sales grew 26.4% to $3.58 billion.
Diversified products returned to profit at $92.8 million, on sales of $2.2 billion, excluding the results if the now discontinued U.S. building materials business, anti-vibration rubber business and chemical products solutions units.
In terms of regions, Bridgestone said it registered growth in all markets, led by 26% growth in the Europe, Russia, Middle East, India and Africa region to $6.32 billion and 25% growth in the Americas to $13.2 billion.
In North America, Bridgestone noted that "pressure on tire supply accompanying a marketwide labor shortage against robust demand for replacement tires laid bare issues about supply measures."
