Bridgestone Corp. (BRDCY.US), the world's second-largest tire manufacturer, expects a more challenging second half of the year as the company faces significant truck tire demand decline in the US, tariff impacts, and production disruptions from cyberattacks, according to its CEO.

In an interview earlier this week, Bridgestone Corp. CEO Shuichi Ishibashi revealed that demand for truck tires for new vehicles in the US has dropped sharply since early August, as truck manufacturers have reduced their production plans for the coming months. Ishibashi, who has led the company since 2020, described 2025 as "a year of emergency measures and crisis response."

While tire demand typically rises in the second half due to increased winter tire sales in Japan and Europe, this seasonal benefit is being offset by weakness in the US market. Challenges in North America – including tariff pressures, slowing US capital expenditure, and shifting trade flows – are testing Bridgestone Corp.'s ability to maintain profit margins and sustain growth. This predicament is common among Japan's export-oriented manufacturers, who are being impacted by rapidly changing global trade dynamics.

Bridgestone Corp. has also been forced to rely on overseas shipments to address production backlogs caused by cyberattacks, resulting in additional costs. The cyberattack occurred in August, targeting Bridgestone Americas and affecting multiple facilities across North America and Latin America. To fill supply gaps, the company resorted to imports, which triggered additional US tariffs. The company plans to disclose the specific financial impact of this incident during next month's earnings call.

In August, Bridgestone Corp. projected annual losses of approximately 25 billion yen (about $166 million) from tariffs and anticipated an additional negative impact of around 10 billion yen from the US economic slowdown, though the latter has not yet been incorporated into overall forecasts. Its domestic Japanese competitors – Sumitomo Rubber Industries Ltd. and Yokohama Rubber Co. – have also warned of multi-billion yen tariff impacts and are implementing price increases to mitigate the effects.

Ishibashi noted that most tariff costs began significantly affecting performance after July, as buffers built through advance shipments, inventory, and transportation cycles have gradually been depleted. The Tokyo-based company plans to maintain its full-year performance guidance and strive to achieve profit targets.

Ishibashi indicated that the company may announce its next share buyback program in February when it releases annual results. Previously, the company expected to complete a 300 billion yen share buyback program by December.

"We are accelerating the construction of a more resilient operating structure to offset tariff impacts," Ishibashi stated. This includes consolidating aging facilities, such as the truck tire plant in La Vergne, Tennessee, to reduce fixed costs and improve efficiency.

**Firestone Brand Revival**

Bridgestone Corp. also plans to leverage its classic US tire brand Firestone to cushion impacts and enhance market profitability. "Reviving the Firestone brand is a key pillar in our strategy to turn change into opportunity," Ishibashi said.

Benefiting from new product launches, Firestone brand passenger and truck tire sales have continued to rise since the second quarter. Ishibashi added that this growth momentum is expected to continue next year.

Ishibashi reiterated that the company aims to achieve profitability in its Brazil operations before the end of the current fiscal year. In the European market, Bridgestone Corp.'s business has improved this year and is expected to achieve a 6-7% adjusted operating profit margin in the next fiscal year.

"Our long-term goals remain unchanged. However, against the backdrop of continuous global policy shifts and rapidly evolving market landscapes, our 2030 target of a 15% profit margin must be built on new realities," Ishibashi concluded.