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Bridgestone Shares Rise Sharply After Strong Revenue Guidance

   By Kosaku Narioka 
 

Bridgestone Corp.'s shares rose as much as 9.5% on Wednesday morning in Tokyo after the Japanese tire maker projected greater revenue and operating profit for 2022 and announced a share buyback.

Bridgestone said Tuesday after the market had closed that it expected a recovery in tire demand in Asia in 2022, although it said rubber and crude oil prices are likely to remain elevated.

Bridgestone forecasts revenue to rise 12% to 3.650 trillion yen ($31.58 billion) this year and adjusted operating profit to increase 7.8% to Y425.00 billion, while projecting a 29% fall in net profit, which includes results of discontinued operations, to Y280.00 billion.

Bridgestone also said it would buy back up to Y100 billion of its own shares from Feb. 17 to Dec. 13. It could repurchase up to 3.5% of its total outstanding shares.

The shares were recently 7.2% higher at Y5,254, off their earlier high of Y5,366, as they also get a tailwind from the overnight fall in crude oil prices. Domestic peer Toyo Tire Corp. shares are up 4.9% and Sumitomo Rubber Industries shares are 2.8% higher.

Bridgestone posted a net loss of Y28.8 billion in the fourth quarter, narrower than the estimated net loss of Y49.39 billion in a poll of analysts by FactSet.

 

Write to Kosaku Narioka at kosaku.narioka@wsj.com

 

(END) Dow Jones Newswires

February 15, 2022 21:54 ET (02:54 GMT)

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