Bridgestone Corp. on Aug. 9 slashed its full-year sales and earnings outlook as it reported an 18% year-over-year drop in profit for the second quarter of the year due to lower sales volume.
The Japanese tire and rubber manufacturer now expects full-year attributable profit to fall 0.6% year over year to ¥290 billion, versus its prior guidance of ¥300.0 billion, or an increase of 2.9%.
Full-year EPS expectations were trimmed to ¥398.04 from the earlier outlook of ¥399.04. Bridgestone also cut its net sales outlook for 2019, now expecting a 0.8% year-over-year decline to ¥3.620 trillion, compared to its earlier target of a 1.1% increase to ¥3.690 trillion.
The company cited "the external market situation" as one of the reasons behind the revision.
The change in guidance comes after the company reported that for the three months to June 30, attributable profit came in at ¥58.4 billion, down 18% from ¥71.2 billion in the second quarter of 2018. The figure missed the S&P Global Market Intelligence consensus GAAP net income estimate of ¥68.48 billion with five analysts reporting.
Net sales fell to ¥896.3 billion from ¥915.5 billion in the year-ago quarter as both the company's tires and diversified products units saw decreasing revenues. Sales fell in the Americas and in China and the rest of Asia-Pacific but were flat in Europe, the Middle East and Africa. They rose in Japan to ¥283.1 billion from ¥280.8 billion.
For the first half of 2019, attributable profit fell 11.8% year over year to ¥118.78 billion from ¥134.62 billion.
Diluted EPS was ¥161.04, down from ¥178.76 a year prior, while operating income plunged 20.6% year over year to ¥158.41 billion from ¥199.43 billion.
Bridgestone's net sales for the first half of 2019 slid 1.7% to ¥1.745 trillion from ¥1.775 trillion in the first half of 2018. Both the company's core tire division and its diversified products segment suffered declines in the first six months of the year.
Bridgestone's operations in the Americas recorded ¥855.5 billion in net sales, down from ¥861.0 billion last year, while in Asia-Pacific, including China and excluding Japan, net sales dropped to ¥304.6 billion from ¥320.9 billion. In Europe, the Middle East and Africa, net sales were flat at ¥295.1 billion.
Meanwhile, in Bridgestone's home market, the company saw net sales rise to ¥553.8 billion from ¥549.4 billion.
Bridgestone continues to forecast a year-end dividend of ¥80 for a total 2019 annual dividend of ¥160, unchanged from 2018.
As of Aug. 8, US$1 was equivalent to ¥109.63.