|
Bridgestone profit halves
|
 |
August 25, 2000: 8:38 a.m. ET
Tire maker's earnings collapse amid costs of huge tire recall
|
LONDON (CNNfn) - First-half profit at Bridgestone virtually halved after the world's third-largest tire maker took a $350 million charge to cover the expense of recalling 6.5 million tires, following a series of fatal auto crashes that raised worries about some Bridgestone products.
The company said net profit for the six months through June fell 48 percent to ¥18.9 billion ($17.7 million), while revenue slipped more than 1 percent to ¥991.2 billion.
Bridgestone is being investigated after widespread publicity surrounding fatal auto accidents reportedly linked to faults in its tires. The company had previously announced it would take a charge to cover the cost of doling out free replacement tires in the recall.
Bridgestone is shipping Japanese-made tires in to the United States to speed up the recall, although moving the goods is proving expensive.
In the first half Bridgestone's operating profit declined almost 8 percent to ¥94.3 billion, as declining contributions from the Americas and Europe outweighed a better showing in its home market. The strong yen lowered the contribution from abroad, making Japanese goods dearer overseas.
In a statement the firm said it expected net income to fall 25 percent this year to ¥67 billion, repeating a forecast made two weeks ago when it warned of the impact of the recall. 
-- from staff and wire reports
|
|
|
|
|
|
Bridgestone
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
