Bridgestone/Firestone Full Year 2001 Financial Projections Announced; Bridgestone Revises Consolidated, Bridgestone/Firestone Projections

    NASHVILLE, Tenn.--Dec. 4, 2001--Included in its revision of its consolidated financial projections for full year 2001 (originally announced by the company in August 2001) Bridgestone Corporation (BSJ) today released the net sales and profit and loss projections for its subsidiary Bridgestone/Firestone Americas Holding, Inc. (BFAH) for the year 2001.
    BFAH is the holding company established as of December 1, 2001, which, through its subsidiaries, is responsible for the Bridgestone group's tire and rubber business in the Americas. For 2001, BFAH full year sales are expected to total $7.4 billion on target with the August 2001 forecast, and as compared to $7.5 billion in 2000. The forecast continues to reflect the impact of the downturn in the U.S. economy, including the reduced demand for passenger and light truck vehicles.
    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 is expected to incur a loss of $1.66 billion for 2001; $1.61 billion of the loss is attributable to the special charges. In addition to the charges of $573 million recorded for the first half of 2001, the second half charges include a $675 million write-down relating to the impairment of BFAH's assets as required by U.S. accounting standards and a general slowing of the economies in the Americas, especially the U.S, during 2001. Other second half charges include a provision of $285 million for additional litigation related costs and expenses; $50 million related to the closure of the Decatur, Ill. plant; and $25 million related to the tire replacement program announced by the company in October 2001.
    Bridgestone Corporation also announced today that it would provide BFAH a capital infusion of $1.3 billion in January 2002. Combined with the company's enhanced access to more cost-effective financing through its reorganization and debt restructuring announced yesterday, Bridgestone/Firestone in the Americas has established a firm foundation for future growth.
    "While we are extremely disappointed that our company has incurred these losses, we know that taking these one-time charges this year puts us squarely on the road to recovery for 2002," said Michael Gorey, Vice President and Controller of BFAH. "Sales of the Bridgestone brand passenger and light truck tires are strong and increasing while Firestone brand sales in the same segment are showing significant improvement. We continue to maintain our leadership position in the commercial tire segment, including the important agricultural and off-the-road markets. By taking these charges this year, we will begin 2002 with a healthier balance sheet and a fresh start on rebuilding our business."
    BFAH expects that, based on the actions taken during 2001 including the rationalization of it production and the reorganization of its structure which is expected to result in lower borrowing costs, the company will be profitable for the full year 2002.
    Bridgestone Corporation consolidated net sales are expected to decrease slightly for the full year 2001 compared to its August 2001 forecast -- from $18.0 billion to $17.5 billion -- due to the slow-down of the global economy. However, its net earnings are expected to increase significantly (from $84.7 million as forecast in August 2001 to $150 million) due to the impact of certain tax benefits related to the write-down of the assets of BFAH and the other special charges that will be taken in 2001.
    Nashville-based Bridgestone/Firestone Americas Holding, Inc. is a subsidiary of Bridgestone Corporation, the world's largest tire and rubber company. Bridgestone/Firestone, through its subsidiaries, develops, manufactures and markets Bridgestone, Firestone, Dayton, and associate and private brand tires. The companies also produce Firestone air springs, roofing materials, synthetic rubber, and industrial fibers and textiles.