Bridgestone Corp. recorded sales of 793.5 billion yen for the third quarter, down 10% from the same period a year ago. The company’s revenue is off 18% so far in 2020, and yet the company has improved its full-year forecast.
Bridgestone recorded a loss of 2.1 billion yen in the third quarter.
The tiremaker says it now expects 2020 revenue to hit 2.89 trillion yen, up from the previously forecasted 2.7 trillion yen. That makes for a 7% increase.
It’s a sign of optimism, but it’s still a 17.5% decline from the 3.5 trillion yen sold in 2019.
“Although it was difficult to predict the spread of the novel coronavirus disease (COVID-19) during the second quarter, the during the third quarter, the business environment recovered as restrictions on the movement of people and goods were eased and economic activities were resumed.” Bridgestone acknowledged “there are still concerns about a second wave of COVID-190 infection(s).”
Bridgestone says both the OE and replacement tire markets recovered in the third quarter, though there are signs of another wave of infections in the remainder of the year. The tiremaker took that into account, and says its forecast is based on a decrease in demand during the final quarter — though it believes the drop off will be “on a smaller scale when compared with the first wave that occurred during the second quarter.”
For the first nine months of 2020, Bridgestone’s sales totaled 2.1 trillion yen, with a loss of 24.1 billion yen.
