Bridgestone's net profit increased to 98.91 billion yen in fiscal 2010
On February 18th, 2011, Bridgestone Corp., the world’s largest tire manufacturer, announced its fiscal 2010 financial statements a few days ago. Benefiting from strong sales, Bridgestone Tire's net profit and sales all increased in fiscal 2010. The company’s net profit for fiscal year 2010 was 98.91 billion yen, a substantial increase from 1.04 billion yen in fiscal year 2009. The larger increase in 2010 was due in part to the company’s inclusion in fiscal year 2009. The special loss of 10.6 billion yen related to the reorganization of production equipment. Bridgestone Tire's sales for fiscal 2010 increased by 10% from the 2009 fiscal year to 2.862 trillion yen, while sales for the fiscal year 2009 were 2.597 trillion yen; the company's operating profit for the 2010 fiscal year was comparable to It has increased 1 times to 166.45 billion yen. Due to higher input costs in 2011 and strong Yen, the company expects its net profit to fall by 17% to 82 billion yen from fiscal year 2011 in fiscal year ending December 31, 2011. Operating profit is expected to be higher than 2010. The fiscal year dropped 16% to 140 billion yen. As the company believes that its tire sales in Japan, the United States and Europe will increase, it is expected that sales in fiscal year 2010 will increase by 11% to 3.180 trillion yen. Due to the higher prices of natural rubber and other raw materials, the company has decided to increase the price of its Japanese tire products, and the decision will take effect from June 1, 2011. The targets for this price increase include passenger cars and motorcycle tires, and the price increase ranged from 8% to 15%. The company also decided to increase tire prices for trucks and buses by an average of 7% from March 1. The company’s current assumption is that the average exchange rate of USD/JPY in 2011 is 1:84, and the average exchange rate of EUR/JPY is 1:110.
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