Bridgestone (5108) Q3 2024 earnings summary

Executive summary

• Revenue for Q1–Q3 2024 increased 2.2% year-over-year to ¥3,269.4 billion, but adjusted operating profit declined 2.5% to ¥353.2 billion and profit attributable to owners fell 5% to ¥252.7 billion, with margin down 0.5pp to 10.8%.

• Premium tire and specialty businesses (mining, aviation, motorcycle) drove solid performance, while Americas faced profit declines due to lower sales volume and market challenges.

• Group profit was supported by favorable foreign exchange and cost reduction, but performance recovery remains slow, especially in Latin America.

• Management is addressing structural changes in the automotive industry, especially the impact of Chinese EVs and low-end imports, with a focus on premium products and cost reduction.

• Discontinued operations include anti-vibration rubber and chemical products solutions businesses, excluded from comparative figures.

Financial highlights

• Q3 2024 revenue was ¥1,092.6B (flat year-over-year); adjusted operating profit ¥124.0B (flat year-over-year); margin 11.4%.

• Profit attributable to owners for Q1–Q3 was ¥252.7B, including a ¥63B gain from fixed asset sales.

• Free cash flow for Q1–Q3 was ¥145.9B, down ¥79B from prior year; equity ratio improved to 64.6%.

• Gross profit increased to ¥1,288.8B from ¥1,227.1B year-over-year; operating profit was stable at ¥377.1B.

• Basic earnings per share for the nine months was ¥369.09, down from ¥389.68 year-over-year.

Outlook and guidance

• FY2024 revenue is forecast at ¥4,410.0B, up 2.2% year-over-year, with adjusted operating profit projected at ¥490.0B and profit attributable to owners at ¥336.0B.

• Dividend per share for FY2024 is projected at minimum ¥210, up from ¥200 in FY2023.

• Management expects continued restructuring and cost reduction into 2025, aiming for profitability improvements by 2026.