Bridgestone Corp. reported a 92 percent plunge in annual profit Thursday as global demand for tires dropped sharply, and forecast even more dismal earnings for the coming year.
Bridgestone, running neck and neck with Michelin SCA of France as the world's biggest tire maker, reported a ¥10.41 billion net profit for the year ending Dec. 31, down from ¥131.63 billion the previous year.
Bridgestone did not break down quarterly numbers. Sales for the year dipped 5 percent to ¥3.23 trillion, it said in a statement.
The main cause for the poor results was sliding demand for tires caused by stagnating auto markets around the world crippled by the U.S. financial crisis and its fallout.
The strong yen, which erodes Japanese exporters' earnings, also hurt, erasing ¥45 billion from its operating profits, according to Bridgestone. Rising material costs and surging oil prices had subsided recently but continued to be high.
Tokyo-based Bridgestone acknowledged it expects no quick recovery. It projects profit for the fiscal year ending next Dec. 31 to decline another 71 percent to ¥3 billion, as sales decline 22 percent to ¥2.53 trillion.