Investing.com -- Bridgestone Corp. (TYO:5108), the Japanese tire manufacturer, witnessed a 5.9% increase in its stock price on Monday after the company's announcement that it plans to buy back up to ¥300 billion ($2 billion) of its own shares, which represents about 11% of its stock.
The share buyback is scheduled to occur between Feb. 20 and Dec. 23. This move is part of Bridgestone's strategy to reach ¥500 billion in shareholder returns by 2026.
This surge in Bridgestone's stock price occurred despite the company's full-year adjusted operating profit and net income forecasts falling short of analyst estimates.
In the last quarter of the year, ending Dec. 31, Bridgestone reported ¥32 billion in net income, which was less than the expected ¥79 billion.
In addition, Bridgestone has plans to reduce costs by ¥100 billion before the end of 2025, as reported by the Nikkei in January.
Part of this cost-cutting strategy includes closing plants in Europe due to a decrease in the region's demand for electric vehicles.
