Financial Results for 1st Half of Fiscal 2021
Bridgestone Corporation
August 10, 2021
1. | Business and Financial Performance | ・・・ | 2 |
for 1st Half of Fiscal 2021 | |||
2. | Consolidated Projection for Fiscal 2021 | ・・・ | 13 |
3. | Revision of Dividend Forecast | ・・・ | 18 |
1/19
1. Business and Financial Performance for 1st Half of Fiscal 2021
2/19
Overview of the Performance and Key Initiatives in 1st Half of Fiscal 2021
Overview of the Performance in 1st Half
- Both sales and profit increased significantly year-on-year as global tire demand recovered and sales increased mainly in REP.
- The impact of raw material inflation was offset by the price/mix improvement. In addition, the expense and cost structure reformation contributed to a further improvement in adjusted operating margin from 1Q to 2Q.
- Profitability improved by expanding REP sales ratio (better business mix) while OE sales recovery was delayed due to semiconductor shortages.
Sales of both REP and OE increased, especially for HRD tires. - PSR HRD Sales: 143% vs.PY, 108% vs.2019 | ||
PS/LT | REP: Expanded sales volume while focusing on major brands. Sales in North America, which lagged behind in 1Q, began to recover in 2Q. | |
| OE: Though the demand recovered significantly year-on-year, the market is still far from recovering to the level of 2019 due to the impact of | |
semiconductor shortages. | ||
TB | REP: Sales in 1H recovered to almost the same level as 2019, supported by strong construction and transportation demand. | |
| OE: The pace of the sales recovery slowed slightly, due to the impact of semiconductor shortages in tractor production. | |
ORR | Mining: Sales in 1H remained at the same level as PY though they are on a recovery trend this year. The recovery is still relatively weak. | |
Construction: Sales of both REP and OE increased significantly. Especially REP sales was above the level of 2019 and remarkably strong. |
Key Initiatives in 2nd Quarter based on Mid Term Business Plan
- Premium Business Strategy
- Sales mix improvement / Price management reinforcement: Increased HRD ratio, focused on major brands, reinforced strategic price management
- Premium production reinforcement: Bahia plant expansion in Brazil (EV, HRD, LT tires), Williamsburg plant expansion in U.S. (air springs for EV)
- Expense and Cost Structure Reformation
- Improvement of manufacturing: Productivity improvement & maximum usage of existing equipment ⇒ Improvement Impact of 1H 2021: 12 B.JPY
- Business portfolio and manufacturing footprint restructuring: Sale of the synthetic rubber manufacturing and sales company in China (Jun), Restructuring of production items at Iwata plant in Japan (Aug)
- Strategic Growth Investment
- Growth investments to expand mobility solutions: Investment in Kodiak Robotics (Jun), Agreement to acquire Azuga Holdings Inc. (Aug)
3/19
Business Environment Surrounding Bridgestone Group
Currency Exchange
- USD/JPY remained at the same level as PY, while EUR appreciated against JPY.
- 1USD = 108 yen, 1EUR = 130 yen (Reference) 1H'20 1USD = 108yen, 1EUR = 120yen
Raw Material Prices
- Natural Rubber - Inflation since last year subsided slightly, but prices are still high.
- Crude Oil - Prices soared greatly from 1Q to 2Q.
Tire Demand
(PSR/TBR)
- Significant recovery year-on-year mainly in North America and Europe. Especially REP in North America was much above the level of 2019.
- OE demand remained still lower than 2019 due to the impact of semiconductor shortages.
Market trend of natural rubber and crude oil (Average)
*1. Source: Singapore Commodity Exchange Limited
2020 | 2021 | ||||
1Q | 2Q | 3Q | 4Q | 1Q | 2Q |
Natural Rubber | 133 | 111 | 128 | 154 | 167 | 165 |
〈TSR20〉*1 (¢ /kg) | ||||||
Natural Rubber | 158 | 138 | 175 | 235 | 234 | 221 |
〈RSS#3〉*1 (¢ /kg) | ||||||
Crude Oil | 46 | 28 | 41 | 43 | 58 | 66 |
〈WTI〉 ($/bbl) | ||||||
4/19
1H'21 Tire Demand (unit base%)
Estimated by Bridgestone Corporation
PSR | TBR | ||||||||||||
OE | REP | OE | REP | ||||||||||
vs PY | vs 2019 | vs PY | vs 2019 | vs PY | vs 2019 | vs PY | vs 2019 | ||||||
Japan | 116% | 85% | 110% | 96% | 122% | 108% | 107% | 94% | |||||
N. America | 136% | 78% | 135% | 107% | 148% | 85% | 135% | 128% | |||||
Europe | 135% | 83% | 126% | 96% | 148% | 95% | 133% | 108% | |||||
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Bridgestone Corporation published this content on 10 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2021 07:31:29 UTC.