Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • News
    • OPINION
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • Humanitarian Award
    • RETAIL TIRES
    • SERVICE ZONE
    • TIRE MAKERS
    • Best Places to Work
    • RUSSIA WAR IN UKRAINE
  • Aligning with ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
May 11, 2022 01:08 PM

Bridgestone: Q1 results up by double digits over 2021

European Rubber Journal
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    bridgestone-HQ_i.jpg

    TOKYO — Bridgestone Corp. is maintaining its 2022 financial outlook as sales and earnings for the quarter ended March 31 grew by double digits.

    Adjusted operating profit for the quarter was up 19.2% to $869 million on 23.5% higher sales of $7.67 billion, yielding an operating ratio of 11.3%. Net income was up 3.4% to $563 million.

    Higher sales were achieved through "strengthened selling price management" and "premium business strategy," Bridgestone said, in response to unprecedented raw material costs and inflation.

    A rise in replacement tire demand offset a decline in the OE segment, which continued to suffer from semiconductor shortages within the automotive industry.

    The tire maker saw passenger tire sales improve "significantly" in Japan due to a "pre-buy" option offered prior to price hikes. In Europe and the U.S., replacement sales remained strong despite price increases.

    Bridgestone reported double-digit revenue gains in all of its geographic operating units, led by 26% growth in the Americas and Europe/Middle East/India/Africa segment, to $3.36 billion and $1.77 billion, respectively.

    Business in Japan grew 21%, ahead of the Asia-Pacific/China segment at 14%.

    Revenue within the passenger tire unit increased 24.6% to $4.14 billion, while adjusted operating income remained flat at $492 million.

    Higher sales of larger rim-diameter (18-inch and greater) contributed heavily to the revenue growth, Bridgestone noted. OE demand was down sharply.

    The operating margin was down 2.8 percentage point to 11.5%, due mainly to rising costs, the company said.

    The company noted that while the North American replacement market was up 12% over 2021, sales volumes still lagged behind those in 2019 by about 5%. OE volume is still 15% below the 2019 (pre-pandemic) level.

    In the truck and bus tire segment, revenue grew 23.6% to $1.89 billion, on the strength of buoyant replacement sales in the U.S. and Europe driven by "robust construction and transportation demand."

    In Japan, the pre-buy option buoyed truck tire sales.

    Segment operating profit rose 2.9% to $190 million, dragging the operating margin down nearly two points to 9.7%.

    In North America, Bridgestone noted replacement market sales of truck/bus tires were up 9% over 2021 but also 24% over 2019.

    In the specialties segment — including mining, farm, aircraft and two-wheeler tires — sales grew 31.4% to $981 million, while the operating profit increased 37.4% to $202 million.

    Bridgestone noted the adjusted operating profit was buoyed by $542 million in price/mix effects and $215 million from higher unit volumes.

    Offsetting these positives were nearly $500 million in higher raw material costs and $198 million in higher operating expenses, which included the rise in ocean-freight costs and upgrading projects at production sites. Freight costs alone grew by nearly 47% over the corresponding fiscal 2021 period.

    The diversified products business unit posted revenue of $568 million and adjusted operating profit of $30.1 million.

    Bridgestone maintained its earlier projections for the full year — 12% higher revenue and 8% better earnings versus fiscal 2021 — saying a "favorable" price impact would "absorb almost all unfavorable impacts from raw materials."

    Related Article
    Bridgestone launches SmartWay-verified Bandag tread
    Bridgestone launches tire designed for electric buses
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    K&M acquires N.Y. distributor Midtown Tire
    2
    Average U.S. light vehicle age rises to 12.2 years
    3
    Former Goodyear complex to be demolished in Akron
    4
    Value tire maker Sailun gets aggressive in U.S. market
    5
    JK Tyre: fiscal '22 earnings drop despite higher sales
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • Humanitarian Award
      • RETAIL TIRES
      • SERVICE ZONE
      • TIRE MAKERS
      • Best Places to Work
      • RUSSIA WAR IN UKRAINE
    • Aligning with ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION