Bridgestone Corp's Financial Results for the First Half of 1998

30 July 1998

Bridgestone Corporation's Non-Consolidated Financial Results for the First Half of 1998; Company Projects Full Year Gains in Consolidated and Non-Consolidated Net Earnings

    NASHVILLE, Tenn.--(AutomotiveWire)--July 30, 1998--Bridgestone Corporation announced today that its non-consolidated -- or parent company only -- net earnings in the first half of 1998 were up 2.4 percent over the same period in 1997, to yen 23.9 billion (US $181 million). At the same time, the company projected that non-consolidated net earnings for the full year would be up 7 percent, to yen 53 billion (US $414 million), and that consolidated net earnings would rise 155 percent, to yen 100 billion (US $781 million), from yen 39.2 billion in 1997.
    Bridgestone's non-consolidated sales in the first half were down 1.4 percent from the same period of the previous year, to yen 358.6 billion (US $2,717 million), and recurring profit was down 0.8 percent, to yen 49.4 billion (US $374 million).
    The decline in non-consolidated sales is attributable to weakening demand in Japan, where consumer spending and private-sector capital spending have slumped. Bridgestone's sales in Japan were down 10 percent from the previous year, to yen 207.6 billion (US $1,573 million). Partially offsetting the weakness in Japanese sales was continuing growth in exports, which were up 13 percent, to yen 150.9 billion (US $1,144 million). The strong momentum in exports reflects continuing vigor in U.S. demand and ongoing recovery in European demand.
    Bridgestone's non-consolidated sales of tires were down 0.3 percent, to yen 272.4 billion (US $2,064 million). The company's unit sales in Japan declined both in original equipment tires for automakers and in replacement tires for the aftermarket. In contrast, unit exports were up solidly, largely because of increased shipments to North America and Europe.
    Non-consolidated sales were also down in diversified products, declining 5 percent, to yen 86.2 billion (US $653 million). Sales were up strongly in strategic sectors, such as precision rubber components for office equipment. But the growth in those sectors was insufficient to offset the overall effect of the general slump in Japanese demand.
    Bridgestone forecasts that non-consolidated sales for the full year of 1998 will show a two-percent decline from the previous year's yen 755.9 billion, to yen 740 billion (US $5,781 million), and that consolidated sales will increase 2.7 percent from yen 2,170.8 billion to yen 2,230 billion (US $17,422 million).
    Bridgestone has closed to within a percentage point of its goal of securing a 20 percent share of the world tire market. Management continues to fuel its pursuit of that goal with aggressive capital spending and marketing efforts. The company has heightened its profile in markets worldwide through highly successful participation in Formula One and CART racing.
    Bridgestone Corporation, headquartered in Tokyo, is a leader among the world's tire companies, producing a complete line of tires which account for 78 percent of its sales worldwide. It also manufactures a wide range of diversified products which include industrial rubber and chemical products, sporting goods and others. These products are sold in more than 150 nations and territories around the world.

(1) Dollar equivalents for results computed at a rate of yen 132 to
    $1. (2) Dollar equivalents for forecasts computed at a rate of yen 128 to
    $1.