Japanese tyre maker Bridgestone has cut its profit forecast for the current year to December by 79.2 per cent due to "extraordinary losses" from its US affiliate Bridgestone/Firestone.
"Our downward revision in the projection for after-tax net earnings is due to developments of our US subsidiary Bridgestone/Firestone Inc," said the company, which has recently been embroiled in a tyre recall scandal with Ford.
The new forecast for the year is euro 3.6 billion lower than a previous prediction given in February, when the company announced results for last year to December 2000.
Plans to close a Firestone plant in Decatur, Illinois, also announced today will contribute to the fall in expected earnings, the company said.
AFP
