Tiremaker Bridgestone predicted that its profit for this fiscal year will go up 37%, due to increased demand and weaker yen.
The company expects net income to reach 235 billion yen ($2.5 billion) this year, up from 171.6 billion yen last year and up compared with analysts’ estimates of 206 billion yen. Bridgestone sees its output increasing 9.6% in 2013 in order to meet demand.
“We are watching the yen’s moves carefully,” Bridgestone’s Chief Executive Officer Masaaki Tsuya said today in Tokyo. “A 1 yen decline in the Japanese currency’s value against the dollar adds about 3.9 billion yen to Bridgestone’s operating profit.”
The company gained 2.8% to 2,555 yen at the 3 p.m. close of Tokyo and shares went up 15% so far this year, with an increase of 9.7% for the Nikkei 225 Stock Average. Bridgestone sees sales going up 17% this year to 3.55 trillion yen.
At the end of 2012 Bridgestone announced it will cut 500 jobs in Europe as sales of tires continue to be sluggish in this market. Most part of the job cuts, 442 from the total of 510, will be made in Spain, where Bridgestone has three plants, while the rest of the jobs will be cut from the company’s plant in Bethune, France.