Core Insights - The 2024 Global Tire "75 Strong" ranking shows stability in the top positions, with Michelin leading for the sixth consecutive year, followed closely by Bridgestone [2][3] - The tire industry is experiencing a "East rises, West falls" trend, with significant sales growth in Asia, particularly China, while North American and European markets are declining [3][4] - Profitability remains a concern, with a divergence in performance among companies, as the average pre-tax operating profit margin is 10.3%, but net profit margins are under pressure [5][6] Ranking Changes - The top six companies in the 2024 ranking remain unchanged, with Michelin at $25.647 billion, Bridgestone at $24.77 billion, and Goodyear at $17.447 billion [2] - The ranking includes 39 Chinese companies, 9 from India, and a total of 75 companies from various countries, indicating China's significant role in the global tire industry [2] Sales Performance - Global tire sales revenue for 2024 is approximately $181.96 billion, reflecting a modest 8% increase from 2023 [3] - The top six companies experienced collective sales declines, with Michelin down 5.95% and Bridgestone down 5.1%, while companies ranked seventh to tenth saw positive growth [3][4] Regional Distribution - Sales growth is primarily concentrated in Asian countries, with 25 out of 39 Chinese companies reporting increases, contrasting with declines in North America and Europe [4] - The top three companies' combined sales account for 37.3% of global sales, indicating a decrease in industry concentration [4] Profitability Trends - The tire industry shows a mixed profitability landscape, with an average net profit margin of 5%, and 8 out of 15 companies reporting declines in net profit [5][6] - Major companies like Michelin and Bridgestone reported significant drops in net profit, highlighting ongoing challenges in the industry [6]

Investment Rating - The report provides various investment ratings for Japanese automotive companies, including "Overweight" for Toyota Motor, Suzuki Motor, Yamaha Motor, Isuzu Motors, Denso, Aisin, and Nifco, while "Underweight" is assigned to Nissan Motor and SUBARU [5]. Core Insights - The global auto industry is expected to normalize after overcoming COVID-19 and supply chain issues, with a projected growth rate of approximately 2% CAGR from 2024 [20]. - The report highlights the complexity of the Toyota Group structure, indicating increasing cross-shareholdings among its subsidiaries [7]. - Tariff impacts are noted to be minor in the tire sector, but the competitive environment remains challenging [4]. Coverage Universe & Valuation - Nissan Motor: Underweight, Price: ¥355, Target Price: ¥320, Market Cap: ¥1,318.5 billion, FY24E P/E: NM, ROE: -1.2% [5] - Toyota Motor: Overweight, Price: ¥2,624, Target Price: ¥3,600, Market Cap: ¥41,438.1 billion, FY24E P/E: 6.9, ROE: 13.4% [5] - Mitsubishi Motors: Neutral, Price: ¥432, Target Price: ¥360, Market Cap: ¥631.1 billion, FY24E P/E: 15.4, ROE: 3.7% [5] - Mazda Motor: Neutral, Price: ¥894, Target Price: ¥1,000, Market Cap: ¥564.8 billion, FY24E P/E: 4.5, ROE: 7.3% [5] - Honda Motor: Neutral, Price: ¥1,421, Target Price: ¥1,500, Market Cap: ¥7,500.2 billion, FY24E P/E: 6.4, ROE: 7.5% [5] - Suzuki Motor: Overweight, Price: ¥1,787, Target Price: ¥2,300, Market Cap: ¥3,509.7 billion, FY24E P/E: 8.6, ROE: 14.5% [5] - SUBARU: Underweight, Price: ¥2,625, Target Price: ¥2,500, Market Cap: ¥1,923.9 billion, FY24E P/E: 5.5, ROE: 12.9% [5] - Yamaha Motor: Overweight, Price: ¥1,075, Target Price: ¥1,500, Market Cap: ¥1,103.3 billion, FY24E P/E: 9.7, ROE: 13.3% [5] - Isuzu Motors: Overweight, Price: ¥1,924, Target Price: ¥2,600, Market Cap: ¥1,372.5 billion, FY24E P/E: 9.8, ROE: 9.5% [5] - Denso: Overweight, Price: ¥1,897, Target Price: ¥2,300, Market Cap: ¥5,522.1 billion, FY24E P/E: 13.0, ROE: 8.0% [5] - Aisin: Overweight, Price: ¥1,781, Target Price: ¥2,200, Market Cap: ¥1,440.9 billion, FY24E P/E: 13.4, ROE: 5.2% [5] - Bridgestone: Overweight, Price: ¥6,106, Target Price: ¥6,500, Market Cap: ¥4,357.8 billion, FY24E P/E: 14.7, ROE: 8.0% [5] Earnings Forecast Summary - Toyota's revenue for FY24 is projected at ¥45,095.3 billion, with a YoY growth of 21.4% and a net profit of ¥4,944.9 billion [17]. - Honda's revenue for FY24 is projected at ¥20,428.8 billion, with a YoY growth of 20.8% and a net profit of ¥1,107.2 billion [17]. - Nissan's revenue for FY24 is projected at ¥12,685.7 billion, with a YoY growth of 19.7% and a net profit of ¥426.6 billion [17]. - Suzuki's revenue for FY24 is projected at ¥5,374.3 billion, with a YoY growth of 15.8% and a net profit of ¥267.7 billion [17]. - SUBARU's revenue for FY24 is projected at ¥4,702.9 billion, with a YoY growth of 24.6% and a net profit of ¥385.1 billion [17].

Company Overview - Bridgestone Corp. (BRDCY) shares increased by 5.8% to close at $19.22, supported by higher trading volume compared to normal sessions [1] - The stock had previously experienced a 9.2% decline over the past four weeks [1] Market Context - The surge in Bridgestone's stock occurred amid a broader market rebound following Trump's announcement of a 90-day pause in reciprocal tariffs on most countries, excluding China [2] - This market movement was a response to significant declines and concerns that tariff increases could lead to a recession [2] Earnings Expectations - Bridgestone is projected to report quarterly earnings of $0.42 per share, reflecting a year-over-year decrease of 2.3% [2] - Expected revenues for the upcoming quarter are $7.07 billion, down 1.4% from the same quarter last year [2] Earnings Estimate Trends - The consensus EPS estimate for Bridgestone has remained unchanged over the last 30 days, indicating a lack of upward momentum in earnings revisions [4] - Historical data suggests that stock prices typically do not continue to rise without trends in earnings estimate revisions [3][4] Industry Comparison - Bridgestone is part of the Zacks Automotive - Foreign industry, where Nissan Motor Co. (NSANY) also operates [4] - Nissan's stock closed 4.3% higher at $4.57, but has seen a return of -26.4% over the past month [4] - Nissan's consensus EPS estimate for its upcoming report has remained unchanged at -$0.30, representing a significant year-over-year decline of 179% [5]

The Auto-Tires-Trucks group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Bridgestone Corp. (BRDCY) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Auto-Tires-Trucks peers, we might be able to answer that question. Bridgestone Corp. is a member of the Auto-Tires-Trucks sec ...

Investors interested in Auto-Tires-Trucks stocks should always be looking to find the best-performing companies in the group. Has Bridgestone Corp. (BRDCY) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Auto-Tires-Trucks sector should help us answer this question.Bridgestone Corp. is a member of the Auto-Tires-Trucks sector. This group includes 100 individual stocks and currently holds a Zacks Sector Rank of #10. The Zacks Sector ...

A small position in Bridgestone Corporation ( OTCPK:BRDCY ) ( OTCPK:BRDCF ) may be warranted in your investment portfolio. Bridgestone is a dominant player in the global tire market, with a long-standing reputation for producing high-quality, premium tires. The company is well positioned inTailwind value investor with Chemical Engineering background including BS, MS, and PhD degrees. My investing style is to apply a mix of fundamental valuation and technical analysis. I'm attracted to companies in the techn ...

Financial Data and Key Metrics Changes - The company achieved a year-on-year increase in revenue to approximately JPY4.4 trillion and adjusted operating profit of approximately JPY480 billion, with an adjusted operating profit margin of 10.9% [4][43] - Net income from continuing operations was JPY295 billion, with ROIC at 8.2% and ROE at 8.1%, both below the previous year's levels [4][44] - For 2025, the company expects revenue of JPY4.370 trillion, up 2% year-on-year, and adjusted operating profit of JPY505 billion, an increase of 11% [52][27] Business Line Data and Key Metrics Changes - The North American business saw increases in both revenue and profit, aided by favorable currency exchange rates, despite a decline in unit sales of passenger car and light truck tires [7][46] - The premium tire business maintained an adjusted operating profit margin of 14%, while the diversified products business faced significant profit declines due to lower demand [14][48] - Latin America experienced a decrease in revenue and profit, landing in the red, particularly in Brazil, where measures against low-end imports were insufficient [10][11] Market Data and Key Metrics Changes - The company reported improved profitability in Asia Pacific, India, and Europe, while profitability in Japan and the Americas decreased [45] - In Europe, the premium tire business saw increased revenue and profit, particularly in the passenger car replacement segment [11][12] - The mining tire business continued to perform strongly, with significant profit increases in both mining and aircraft tire solutions [13][48] Company Strategy and Development Direction - The company has positioned 2025 as "The year of Emergency and Crisis Management," focusing on rebuilding and enhancing business quality while pursuing growth [6][16] - Strategic initiatives include optimizing business footprints, enhancing premium focus, and improving cost structures to support profitability [9][22] - The company aims to strengthen its presence in growth markets such as the US, India, and commercial B2B solutions [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed a strong sense of urgency regarding declining earning power and capital efficiency, emphasizing the need for a robust business quality [7][16] - The company anticipates a challenging business environment in 2025 but remains committed to solidifying its defense and implementing offensive initiatives [40][41] - Management highlighted the importance of adapting to external factors, including potential tariffs and market conditions, while maintaining a focus on premium products [30][79] Other Important Information - The company plans to conduct a share buyback of up to 75 million shares at a cost of JPY300 billion, with a target equity ratio of 55% over the medium term [36][37] - The dividend payout ratio is set to increase to 50%, with a planned minimum dividend of JPY230 for 2025, up from JPY210 in 2024 [38][61] - The company is committed to sustainability initiatives, including carbon neutrality and responsible resource management [35] Q&A Session Summary Question: Current Business Environment and Regional Outlook - Management acknowledged the ongoing severe business environment but noted improvements in North America, particularly in the truck and bus tire segment [66][71] - The company is optimistic about the future of the consumer tire market, especially with the revitalization of the Firestone brand [75][76] Question: Financial Plans and Tariff Implications - Management discussed the anticipated increase in selling prices and the impact of feedstock costs, emphasizing a disciplined approach to pricing [68][80] - The uncertainty surrounding import tariffs was acknowledged, with plans in place to mitigate potential impacts [70][79] Question: Rebuilding Resources and Future Targets - The company plans to invest JPY100 billion in rebuilding efforts, primarily related to the closure of the LaVergne plant, with a focus on achieving a 10% ROIC by 2026 [92][94] - Management expressed confidence in reaching adjusted operating margin targets of 12% to 13% by 2026 through improved business quality [95][96] Question: Long-term Business Management and Growth Aspirations - Management emphasized the importance of growth with quality and improving capital efficiency as foundational objectives [113][116] - The company remains committed to enhancing its B2C operations while maintaining a strong focus on B2B solutions [120][121]

Investors looking for stocks in the Automotive - Foreign sector might want to consider either Bridgestone Corp. (BRDCY) or Li Auto Inc. Sponsored ADR (LI) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate ...

Dublin, Jan. 15, 2025 (GLOBE NEWSWIRE) -- The "Port and Industrial Tires - Global Strategic Business Report" report has been added to ResearchAndMarkets.com's offering.The global market for Port and Industrial Tires was estimated at US$8.8 Billion in 2023 and is projected to reach US$11.2 Billion by 2030, growing at a CAGR of 3.6% from 2023 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The growth in ...

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