Bridgestone Corporation Announces 2001 Consolidated Financial
Results
Bridgestone/Firestone Results Also Reported
Nashville, Tenn. (February 22, 2002) - Bridgestone
Corporation, parent company of Bridgestone Americas Holding, Inc. (BFAH),
announced today that its consolidated, or worldwide, group net sales
in fiscal year 2001 totaled ¥2,133,825 million, or about $17.5 billion,
experiencing a 6% increase from the previous year.
Despite the slow-down of the global economy, companies
throughout the Bridgestone group worked to maximize sales by promoting
new products aggressively and by expanding and upgrading their sales
channels. Another component of the sales increase was the weakening of
the yen, which amplifies the yen-denominated value of sales outside Japan.
While sales have increased, consolidated operating profit
in 2001 slipped to ¥118,023 million, or about $967.4 million, a decline
of approximately 27% from 2000. Net earnings fell as well to ¥17,389
million, or about $143 million, a decline of 2% from 2000. To increase
profitability, the company raised productivity, streamlined logistics
and cut costs.
In the United States, BFAH 2001 net sales were approximately
$7.4 billion, in line with 2000 sales and on target with the company's
August forecast. Due to the establishment of one-time reserves to address
the impact of certain activities during 2001 such as the closure of its
Decatur, Ill. facility and write-down of the assets of BFAH, the company
incurred a net after tax loss of $1.68 billion in 2001. These figures
also continue to reflect the impact of the downturn in the U.S. economy,
including the reduced demand for passenger and light truck vehicles.
In the Americas, Bridgestone/Firestone expects unit
tire sales to increase through expanding retail network sales channels,
introduction of new products in Bridgestone-brand passenger car tires
and new supply contracts with operators of truck and bus fleets. Bridgestone
Corporation anticipates demand for OE and replacement tires in Japan
as well as unit sales in these categories to remain at the same levels
as 2001.
BFAH is projecting an increase in 2002 net sales to
$7.7 billion. In addition, based on the actions taken during 2001, including
the rationalization of its production and the reorganization of its structure
that is expected to result in lower borrowing costs, the company expects
to achieve full-year profitability in 2002.
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.
Nashville-based Bridgestone Americas Holding, Inc. is
the U.S. subsidiary of Bridgestone Corporation. BFAH, through its subsidiaries,
develops, manufactures and markets a wide range of tires to address the
needs of a broad range of customers, including consumers, automotive
and commercial vehicle original equipment manufacturers and those in
the agricultural, forestry and mining industries. The companies also
produce Firestone air springs, roofing materials, synthetic rubber, and
industrial fibers and textiles and operate the world's largest chain
of automotive tire and services centers.
Note:
1.) Dollar equivalents for the 2001 results were computed at a rate of ¥122
to the U.S. dollar, but those for the 2002 forecasts were computed at a rate
of ¥125 to the U.S. dollar. 2000 results were computed at a rate of ¥108
to the U.S. dollar.
2.) All Bridgestone Corporation figures are on a consolidated, or worldwide,
basis. |
