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UPDATE 1-Bridgestone: little impact from current yen levels

Published 08/25/2010, 05:35 AM
Updated 08/25/2010, 05:40 AM

TOKYO, Aug 25 (Reuters) - Top Japanese tyre maker Bridgestone Corp said on Wednesday the yen's current level does not hugely affect its earnings or long-term business strategy because it has diversified its operations around the world.

"Foreign exchange rates at current levels do not do much harm to our earnings," President Shoshi Arakawa told a news conference.

"I think it is not necessary to review our sales or production strategy for the long term if the dollar stays around 85 yen," he said, adding that a stronger yen at such levels as 83 yen to the dollar would not prompt the company to review its strategy either.

"The recent strength of the yen has not prompted us to consider accelerating the shift of our Japanese operations or moving our headquarters abroad," he added.

The yen strengthened to a 15-year high against the dollar and a nine-year peak against the euro on Tuesday, threatening the outlook for a strong profit recovery at Japanese exporters like car and auto parts makers.

Bridgestone has forecast the dollar to average 91 yen and the euro 115 yen this year.

The greenback was trading around 84.60 yen at 0930 GMT on Wednesday.

Arakawa said that every one-yen decline in the dollar trims its annual revenues by 17 billion yen ($202 million) and operating profit by 1.8 billion yen. (Reporting by Yumiko Nishitani; Editing by Chris Gallagher)

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