Bridgestone Corporation (BRDCY) Q4 2024 Earnings Call Transcript

2025-02-22 10:22:46 ET

Bridgestone Corporation (BRDCY)

Q4 2024 Earnings Conference Call

February 17, 2025, 12:30 AM ET

Company Participants

Shuichi Ishibashi - Global CEO

Naoki Hishinuma - Global CFO

Yasuhiro Morita - Global CAO & Global CSO

Conference Call Participants

Shinji Kakiuchi - Morgan Stanley MUFG Securities

Tairiku Sakaguchi - Mizuho Securities

Kazunori Maki - SMBC Nikko Securities

Arifumi Yoshida - Citigroup Global Markets

Shiro Sakamaki - Bank of America

Presentation

Operator

Ladies and gentlemen, thank you very much for gathering on the occasion of the presentation of the financial results for 2024.

Let me introduce to you the members from the company. Representative Executive Officer, Global CEO, Mr. Shuichi Ishibashi; Representative Executive Officer, Global CFO, Global CAO and Global CSO, Yasuhiro Morita; as well, we have Global CFO in-charge of the Finance Division, Mr. Naoki Hishinuma. So, the three representatives from the corporation will cover the presentation.

First and foremost, I would like to call upon Mr. Ishibashi -- Shu Ishibashi, Bridgestone Corporation Member of the Board, Global CEO and Representative Executive Officer, on the subject of the summary of financial results 2024 and business plan for 2025.

Shuichi Ishibashi

Hello, everyone. I am Ishibashi, Global CEO.

Today, I am going to explain the company's summary of financial results for 2024 and business plans for 2025.

First, summary of 2024 consolidated financial results. The structural changes in the automotive industry due to the rise of Chinese EVs and amid the new threats of acceleration of tire industry structural changes caused by an increase in low-end imports, especially in Latin America and Europe, the company did achieve year-on-year increase in both revenue and adjusted operating profit, partly due to a tailwind in foreign exchange rate. Revenue was approximately JPY4.4 trillion, adjusted operating profit, approximately JPY480 billion, with adjusted operating profit margin of 10.9%. Net income from continuing operations was JPY295 billion, ROIC, 8.2%, and ROE was approximately JPY100 billion of rebuilding cost and was at 8.1%, both below the previous year's level.

With the early start of business rebuilding on its second stage, thorough pursuit of premium focus, promotion of sales mix improvement, the company continues to maintain and reinforce a solid foundation of premium tire business. Global business cost reduction initiatives yielded about JPY75 billion to support the business performance of the company. However, there remained issues in the speed of performance recovery, particularly in Brazil where business conditions deteriorated. And in addition, the profitability of Japan tire business and diversified products business weakened, which caused the company to land below the fiscal year guidance of August 2024. Shareholder return is focused at JPY210 per share with no changes from the February guidance....

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