Japanese tyre maker maintains 2025 guidance despite profit decline

Bridgestone Corp, the world's one of largest tyre manufacturers, reported a 42 percent decline in first-half net profit as restructuring costs weighed on earnings, though the company maintained its full-year guidance amid improving operational performance.

The Tokyo-based company posted net profit attributable to shareholders of 115.5 billion yen for the six months ended June 30, down from 199.1 billion yen a year earlier. The decline was primarily due to exceptional gains from asset sales recorded in the previous year.

Revenue fell three percent to 2.12 trillion yen, reflecting challenging market conditions across key regions. However, adjusted operating profit rose two percent to 234.6 billion yen, with margins improving to 11.1 percent from 10.5 percent in the same period last year.

"Return from business rebuilding" and "business cost reduction" initiatives contributed positively to results, the company said, offsetting headwinds from raw material costs and foreign exchange fluctuations.

Regional performance varied significantly. The Europe, Middle East and Africa segment showed the strongest improvement, with adjusted operating profit surging 151 percent to 18.5 billion yen as restructuring efforts began to bear fruit. The Americas division also posted a four percent increase in operating profit despite a six percent revenue decline.

However, Japan, the company's home market, saw operating profit drop 12 percent to 82.5 billion yen as margins compressed to 13.7 percent from 16.0 percent previously.

Bridgestone maintained its 2025 guidance, projecting revenue of 4.33 trillion yen and adjusted operating profit of 505 billion yen. The company revised down its estimate of the impact from US tariffs to 25 billion yen from a previous 45 billion yen forecast in May.

"Counter the direct impact of US tariffs — Impact on AOP has been revised from 45 billion yen level (May guidance) to 25 billion yen level (August guidance)," the company stated in its presentation.

The tyre maker is progressing with its capital allocation strategy announced in February, including a 300 billion yen share buyback programme. As of end-July, approximately 47% of the repurchase plan had been completed.

Global CFO and Executive Director Naoki Hishinuma highlighted the company's focus on premium segments and operational improvements as key drivers for future growth.

Bridgestone's diversified products business, including air springs and chemical products, remained under pressure with an eight percent decline in both revenue and operating profit during the half-year period.

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Epsilon Carbon Pvt. Ltd. has announced the appointment of Munish Kumar Rathi as its new President and Business Head for Carbon Black.

With more than 25 years of extensive global leadership experience, Rathi brings a strong background in profit and loss management, multi-site manufacturing leadership, strategic planning and business transformation. His career is marked by a demonstrated ability to drive operational excellence and foster sustainable growth across various international markets.

The company is anticipating that his leadership will play a key role as Epsilon Carbon continues to expand its global footprint and accelerate innovation within the carbon black business segment. The organisation has formally welcomed Rathi to the team, expressing confidence in his capacity to guide future strategic initiatives. This move underscores Epsilon Carbon’s commitment to strengthening its leadership team in pursuit of long-term global competitiveness.

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TVS Srichakra has approved capital investment of up to INR 2.2 billion to expand production capacity at its manufacturing facilities in Vellaripatti, Madurai.

The expansion will cover the company’s two-wheeler tyre and off-highway tyre plants, with investment of up to INR 1.1 billion allocated to each facility.

TVS Srichakra said the two-wheeler tyre plant currently has capacity of about 21 million to 23.5  million tyres a year and operates at utilisation levels of around 80 to 85 percent. The company plans to add about 5 percent capacity, with completion targeted in the first half of FY2028-29.

The off-highway tyre plant has existing capacity of about 75 to 85 metric tonnes a year and operates at utilisation levels of 75 to 80 percent. TVS Srichakra plans to increase capacity at the plant by about 25 percent, with the addition scheduled for the first half of FY2027-28.

The company said the investment would be financed through a combination of internal accruals and debt.

TVS Srichakra said the expansion is intended to meet growing demand for its two- and three-wheeler tyres and off-highway tyre products.

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JK Tyre & Industries reported record consolidated revenue of INR 163.84 billion for FY26, registering an 11 percent year-on-year increase, supported by strong domestic demand and volume growth across key tyre segments.

The company’s consolidated EBITDA rose 25 percent to INR 20.89 billion, with EBITDA margin improving to 12.8 percent.

Profit before tax increased 46 percent to INR 10.43 billion, while profit after tax climbed 52 percent to INR 8.60 billion during FY26.

For the fourth quarter, consolidated revenue rose 12 percent year-on-year to INR 42.33 billion.

Quarterly EBITDA surged 42 percent to INR 5.46 billion, with margin at 12.9 percent, while Q4 PAT nearly doubled, rising 94 percent to INR 1.99 billion.

Chairman and Managing Director Dr Raghupati Singhania described FY26 as a year of robust performance, highlighting record volumes in both truck and bus radial and passenger car radial categories.

Domestic sales volumes during Q4 grew 21 percent overall. Truck and bus radial replacement volumes increased 53 per cent, while OEM demand in the segment rose 23 percent. Passenger car radial replacement volumes were up 26 percent and OEM demand increased 10 percent.

The company said growth momentum was expected to continue into FY27, supported by new vehicle launches, infrastructure development and sustained replacement demand.

JK Tyre also highlighted strong traction in electric mobility. More than 70 per cent of electric buses operating in India currently run on its tyres, while the company supplies EV tyres to nearly eight two-wheeler OEMs and has secured orders for electric passenger vehicle models including Renault Duster EV, Hyundai Creta EV and Tata Motors’ Nexon and Punch EV variants.

Its Mexico business, operated through JK Tornel, contributed nearly 20 per cent of consolidated revenue and is expected to maintain growth across Mexican, Latin American and US markets.

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The U.S. Tire Manufacturers Association (USTMA) has elected David Cichocki, Managing Director, Americas, and chief sales officer, Americas Consumer, at The Goodyear Tire & Rubber Company, to its board of directors.

“I’m pleased to welcome David to our Board. His extensive experience and expertise across the tire and consumer goods industries will be invaluable as we navigate today’s complex industry,” said Anne Forristall Luke, USTMA president and chief executive. “His proven leadership will strengthen our ability to seize emerging opportunities.”

Cichocki joined Goodyear in early 2026 and is responsible for overseeing the Americas region and leading the company’s Americas Consumer sales business.

He brings more than 30 years of leadership experience across industrial and consumer goods companies to the USTMA board.

Before joining Goodyear, Cichocki served as senior vice-president of US sales at Whirlpool, where he managed a portfolio valued at more than $10bn across retail and direct-to-consumer channels.

He also spent more than 20 years at Kraft Foods and Nabisco in a range of senior leadership roles.

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