Bridgestone Corp. reports that 2009 presented the company with a “challenging” operating environment due to weakened consumer spending and declines in private sector capital investment, which counteracted signs of recovery among some exports.
However, the Japanese manufacturer states that although the economic recession in Europe and the U.S. continued, some sectors showed signs of stabilization.
Against such a backdrop, the tire major achieved net sales of 2,597.0 billion yen (18.3 billion), a 20% decrease on the 2008 fiscal year.
Operating income, at 75.7 billion yen (532.2 million) was 42% down on the previous year and net income, at 1.0 billion yen (7.0 million), dropped 90% from 2008. Additionally, during the year Bridgestone recognized as an extraordinary loss 10.6 billion yen (74.5 million) in costs linked to its plant closures in Oceania.
During the year, Bridgestone states in its 2009 financial reports, it worked to realize its goal of “becoming the world’s undisputed No. 1 tire and rubber company in both name and reality.” To meet this end, Bridgestone says it has focuses on increasing the sales of highly competitive products, strengthening supply capacity, improving manufacturing productivity, enhancing technological superiority and effectively utilizing management resources.
Net sales derived from tires amounted to 2,152.9 billion yen (15.1 billion), 18% less than in 2008. Operating income from Bridgestone’s tire business was 75.2 billion yen (528.7 million), a drop of 19% on the previous fiscal year.
Bridgestone comments that in the tire segment it “worked to maximize its sales momentum by introducing appealing new products worldwide, while at the same time improving and expanding strategic production sites around the world in support of respective product domains, particularly those that have been identified as strategic and important to the company’s future growth.”
Unit sales of tires in Japan were “substantially down” from 2008 due to the “impact of slumping demand,” Bridgestone reports. In Europe, units sales of tires for passenger cars, light commercial vehicles, trucks and buses were also “substantially” down on fiscal 2008 because of a significant fall in demand, yet a significant increase in unit sales of strategic products, led by run-flat and UHP tires, occurred in the replacement sector.
The company’s North American tire business saw a major decline in unit sales of consumer and truck and bus tires, however a “significant” increase in unit sales of strategic products such as UHP and run-flat tires took place here also. In the specialty tire business, unit sales of ultra large OTR radials for construction and mining vehicles were “favorable,” exceeding those of the 2008 fiscal year.
In 2010, Bridgestone believes it is likely to “experience challenging conditions” trends in the prices of raw materials remain uncertain despite an economic trend towards recovery. The group is also expected to face “rapid changes in the structures of demand and competition worldwide.”
Furthermore, company management predicts that unit sales of tires in Japan, Europe and North America will increase over the level achieved in 2009. Full-year net sales of 2,830.0 billion yen ( 19.9 billion) are anticipated, a figure 9% higher than the 2009 result, with an operating income of 94.0 billion yen (660.8 million), up 24%, and a net income of 45.0 billion yen (316.3 million). (Tyres & Accessories)
