Bridgestone Corporations Announces 2000 Consolidated Financial Results
Bridgestone/Firestone Results Also Reported
Nashville, Tenn. (February 22, 2001) -Bridgestone
Corporation, parent company of Bridgestone/Firestone, Inc. (BFS), announced
today that its consolidated, or worldwide, group net sales in fiscal
year 2000 totaled ¥2,006,902 million, or about $18.6 billion, experiencing
a 4% decline from the previous year.
The business environment has been very trying over the past fiscal
year. In Japan, the company was directly impacted as investment in
new homes declined and consumer spending waned. In addition, economic
growth slowed in the United States and raw material prices raised the
company's costs. In light of these areas, consolidated operating profit
in 2000 slipped to ¥161,785 million, or about $1.5 billion, a decline
of approximately 32% from 1999. A similar decline was seen in recurring
profits, slipping 38% to ¥124,793 million, or about $1.2 billion.
Net earnings fell as well to ¥17,741 million, or about $164 million,
a decline of 80% from 1999. Net earnings per share declined 80% to ¥20.60,
or $0.19.
In addition to the foregoing , BFS also experienced an approximate 80%
downturn in operating profit for fiscal year 2000. This included extraordinary
losses recognized in 2000 and associated with the BFS August, 2000 recall
of certain tires, as well as a softening in demand in the truck industry
and higher raw material costs.
In 2000, BFS established a reserve to cover recall expenses at $388
million. In addition, the related legal reserve was established at $463
million. The company has offset these figures by $98 million sought from
its product liability insurance, for a net reserve total of $754 million.
BFS 2000 net sales were approximately $7.5 billion, in line with 1999
sales but about $500 million less than the company's August forecast.
BFS reported a year 2000 operating profit of $108 million and a loss
of $510 million in the profit after tax category.
Bridgestone Corporation anticipates firm demand for OE and replacement
tires in Japan. The corporation expects a small increase unit tire sales
there as well. In the Americas, Bridgestone expects unit tire sales to
decline because of the effects of the BFS recall, as well as the effect
of reduced car and truck production on overall tire demand. BFS is projecting
a slight decline in 2001 net sales to $7.2 billion. In addition, while
the company is forecasting an $80 million loss in operating profit for
full year 2001, it is anticipating that operating profit will again be
positive in the second half of this year. It also expects that the loss
in the profit after tax category will be reduced to 200 million for the
full year 2001. BFS has stated that it is focused on returning to a positive
profit after tax position in the second half of 2002.
Financial results by segment
1. Industry segments
|
Tire 1999 |
Tire 2000 |
Non-tire 1999 |
Non-tire 2000 |
Total 1999 |
Total 2000 |
Sales (¥ M) |
1,639,383 |
1,561,778 |
472,922 |
467,301 |
2,085,720 |
2,006,902 |
Sales ($ M) |
14,147 |
14,264 |
4,148 |
4,327 |
18,295 |
18,591 |
2. BFS sales and net earnings
|
BFS 2000 |
BFS 2001 Forecast |
Sales |
$7.5 billion |
$7.2 billion |
Operating profit |
$108 million |
$(80) million |
Profit after taxes |
$(510) million |
$(200) million |
Bridgestone Corporation, headquartered in Tokyo, is the world's leading
tire and rubber company. It manufactures a wide range of diversified
products, which include industrial rubber and chemical products and sporting
goods. Its products are sold in over 150 nations and territories around
the world.
For complete report click
here
Nashville-based Bridgestone/Firestone, Inc., is the largest subsidiary
of Bridgestone Corporation of Japan. Bridgestone/Firestone develops,
manufactures and markets Bridgestone, Firestone, Dayton and associate
and private brand tires. The company also produces Firestone air springs,
roofing materials, polymers, synthetic rubber and industrial fibers and
textiles.
Note:
1.) Dollar equivalents for the 2000 results were computed at a rate of ¥108
to the US dollar, but those for the forecasts were computed at a rate of ¥105
to the US dollar. 1999 results were computed at a rate of ¥114 to the US
dollar
2.) All figures are on a consolidated, or worldwide, basis.
|
