By Kosaku Narioka
Bridgestone Corp. shares rose sharply Friday morning after the Japanese tire maker projected a 12% rise in net profit in 2023, thanks partly to greater tire demand for new cars.
The shares were recently 3.5% higher at 5,108 yen after rising as much as 4.3% earlier. The benchmark Nikkei Stock Average was down 0.5% at 27557.69.
Bridgestone said Thursday after market close that it expected revenue to rise 1.0% to Y4.150 trillion ($30.98 billion) and net profit to climb to Y335.00 billion this year.
The tire maker said demand is expected to recover for new cars as the shortage of chips that weighed on auto production in 2022 is likely to ease.
Bridgestone's fourth-quarter net profit was Y111.6 billion, compared with net loss of Y28.8 billion a year earlier, thanks partly to earnings growth in Asia and Americas. That beat the estimate of Y81.61 billion expected in a poll of analysts by FactSet.
Fourth-quarter revenue rose 22% to Y1.133 trillion.
Write to Kosaku Narioka at firstname.lastname@example.org
(END) Dow Jones Newswires
February 16, 2023 21:14 ET (02:14 GMT)Copyright (c) 2023 Dow Jones & Company, Inc.