Bridgestone Corp. is expecting more than 63% net profit this year (2,14 billion dollars), despite the fact that the company had to face from October until December the impact of the strong yen and high material costs on the company’s earnings.
Bridgetstone Corp. expects the yen, the prices of natural rubber and other materials to decrease to an average or a low level this year if they pay attention to volatile raw-material costs and take quick action when necessary.
“If material prices [rise] dramatically, we will monitor conditions in the market and raise prices [of tires] in the short term” if possible, said Akihiro Eto, Bridgestone chief financial officer.
Along with their biggest rival Michelin, they will capitalize on high demand in emerging markets and high-margin tire products. That way Bridgestone forecasts would represent a jump from last year’s 4,1% rise in net profit and a increase in sales with 5,7%.
Bridgestone also said that it will focus on run-flat tires and other high-end products, it will boost its tire reinforcement and steel-cord output capacity at a nearby plant in Saga, which will help with growth in global demand.
Besides that they assume the dollar will average ¥77 this year from ¥80 (2011), and the euro ¥100 from ¥111 (2011). When yen increases it will make some damages to the price competitiveness of Japanese exports and dents overseas sales when repatriated into the Japanese currency.