Japanese auto tire manufacturer Bridgestone Group announced on Thursday (February 19) that due to the global demand decline, 2008 Bridgestone's net profit fell 92% year-on-year, and it is expected that profits will decline further in 2009.
In 2008, Bridgestone sales fell 5% year-on-year to 3.23 trillion yen; operating profit fell from 249.96 billion yen in 2007 to 131.55 billion yen (1.41 billion). Bridgestone said at a press conference that the breakdown of demand in the auto market, the rise in the value of the yen, and the rise in raw material prices have led to a drop in profits. Bridgestone has not yet released quarterly profit data.
Bridgestone expects this fiscal year (as of March 2009) net profit will fall 71% to 3 billion yen, while sales fell 22% to 2.53 trillion yen.
Previously, Bridgestone’s biggest rival, French Michelin Tire, announced that its 2008 net profit fell from US$1.4 billion in the previous year to US$111 million.
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