Saturday, October 23, 2010

Bridgestone tyres sets ambitious earnings goal

Bridgestone tyres is forecasting a massive growth in sales thanks to an increase in demand from developing countries across the globe.

The Japanese tyres manufacturer claims that it may see sales increase to $43 billion by 2012 thanks to demand growth in China, India and Brazil.

Such a dramatic rise in sales could result in an operating profit of $3.44 billion in 2012, up 8% from its anticipated 2010 profit line, according to Bridgestone.

The company told analysts that it expects it tyre sales to grow 40% by 2015 from 2009, while industry-wide demand is expected to increase 15%.

It forecasts tyre sales in China to rise 140% from 2009 results by 2015, and by 80% in India and 60% in Brazil.

The tyre manufacturer also announced it will spend $296 million to boost capacity for giant OTR tires. The expansion projects at its Japanese plants in Fukuoka and Saga are scheduled to be completed in the second half of 2013.

The capacity increase will boost output at the Fukuoka plant to 130 tons from 30 tons currently.

In addition, Bridgestone is spending 2 billion yen to expand capacity at its steel cord plant in Japan

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