Bridgestone Misses Consensus EPS For 2018

Annual EPS

Bridgestone Corporation missed Wall Street's consensus expectations for its annual earnings per share (EPS) of SEN (Yen) 401.86 or $3.55 by over 3 percent. (All values will be converted to U.S. dollars based on 1 USD = 113 SEN exchange rate established in the company's earnings report.) According to Seeking Alpha, annual EPS increased 2 percent year-over-year (Y/Y), from $3.35 to $3.43.

Bridgestone, based in Tokyo, is one of the world's largest tire manufacturers. The company manufactures tires for aircraft, buses, cars, construction vehicles and motorcycles. It has over 140,000 employees and operates in 150 countries.

Fourth Quarter Performance

Bridgestone's net sales for the fourth quarter decreased nearly 0.5 percent Y/Y from $8.67 billion to $8.63 billion. Operating income decreased over 6 percent, from $1.05 billion to $989 million. Bridgestone's operating ratio decreased from 12.2 percent to 11.5 percent. Net income decreased over 6 percent from $990 million to $925 million.

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Business Segments

Net sales of tires for the quarter increased nearly 0.5 percent Y/Y from $7.29 billion to over $7.32 billion. Operating income for tire sales increased 3 percent Y/Y from $997 million to $1 billion. Operating margin for the quarter remained flat Y/Y at 13.7 percent.

Net sales of diversified products (auto parts, bicycles, chemicals, conveyor belts, filaments, hydraulic hoses and sporting equipment) for the quarter decreased nearly 5 percent Y/Y, from $1.42 to $1.35 billion. Operating income for diversified products decreased 70 percent Y/Y from $5.7 million to nearly $1.7 million. Operating margin for the quarter decreased 68 percent from 4.1 percent to 1.3 percent.

Geographic Segments

Net sales for the quarter in Japan increased 4 percent Y/Y from $3.03 billion to $3.16 billion. Net sales in the Americas for the quarter decreased 3 percent Y/Y from $4.04 billion to $3.91. Europe, Middle East and Africa (EMEA) net sales for the quarter increased 4 percent Y/Y from $1.28 billion to $1.33 billion. China and Asia-Pacific net sales decreased 5 percent Y/Y from $1.48 billion to $1.4 billion.

Bridgestone's tire production for the quarter decreased 4 percent Y/Y from 490,000 tons to 470,000 tons. Tire production in Japan for the quarter increased 8 percent Y/Y from 120,000 tons to 130,000 tons. Tire production in the Americas remained flat Y/Y at 130,000 tons. Tire production in EMEA remained flat Y/Y at 70,000 tons. Tire production in China and Asia-Pacific decreased 8 percent Y/Y from 120,000 tons to 110,000 tons.

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