BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific
BBCi NEWS   SPORT   WEATHER   WORLD SERVICE   A-Z INDEX     

BBC News World Edition
 You are in: Business  
News Front Page
Africa
Americas
Asia-Pacific
Europe
Middle East
South Asia
UK
Business
E-Commerce
Economy
Market Data
Entertainment
Science/Nature
Technology
Health
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
SERVICES
-------------
EDITIONS
Friday, 9 August, 2002, 14:32 GMT 15:32 UK
Bridgestone recovers from tyre scandal
Tyres in a row
Bridgestone is planning to boost its tyre output
Japanese tyre company Bridgestone appeared to be finally putting its troubles behind it with a strong jump in profits.

The company reported a group net profit of 24.48bn yen ($202.2m) for the half year to June.


The Firestone problem seems to have been fading away since last year

Kiyoshi Yamanaka
T & D Asset Management
This was a big turnaround from a loss of 30.57bn yen a year ago.

The company, which has been plagued by a tyre-recall scandal, also increased its profits forecast for the full year.

Bridgestone's Firestone brand of car tyres were implicated in Ford's multi-billion dollar recall two years ago, after too many accidents where the tyre tread had peeled away on Ford Explorer vehicles.

Last November, the Japanese company agreed to a settlement to ward off a string of expected lawsuits.

"The Firestone problem seems to have been fading away since last year," said Kiyoshi Yamanaka, portfolio manager at T & D Asset Management.

"Therefore, to see Bridgestone start taking a more aggressive stance is not a surprise."

Boost to capacity

In another piece of good news, the company announced it would boost annual output capacity by 8 million tyres.

It is Bridgestone's first major expansion in two years - and the company will lift production in plants around the world to manufacture the extra tyres.

The company's rebound was attributed to strong exports to the US, a weaker yen and some restructuring efforts.

Sales in the US seem to have recovered after the company put greater emphasis on the Bridgestone brand.

Meanwhile, the 102-year-old Firestone brand has deteriorated less than expected.

"Demand has steadily returned for both Bridgestone and Firestone brand tyres and the decision to expand capacity is essentially a no-brainer," said Deutsche Securities analyst Kunihiro Matsumoto in a report.

Total sales at Bridgestone rose 6.4% to 1.09 trillion yen for the half year.

The results were welcomed by investors, with Bridgestone shares closing 6.4% higher at 1,685 yen in Tokyo on Friday.

See also:

08 Nov 01 | Business
05 Oct 01 | Business
13 Aug 01 | Business
25 Jul 01 | Business
22 May 01 | Business
21 May 01 | Business
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories

© BBC ^^ Back to top

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East |
South Asia | UK | Business | Entertainment | Science/Nature |
Technology | Health | Talking Point | Country Profiles | In Depth |
Programmes