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NASHVILLE, Tenn. (February 22, 2002)-
Bridgestone Corporation, parent company
of Bridgestone/Firestone 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/Firestone
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.
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Bridgestone/Firestone
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