Bridgestone/Firestone Reports Record Sales
1 September 1998
Bridgestone/Firestone Reports Record Sales, Income for '98 First Half
NASHVILLE, Tenn.--(AutomotiveWire)--Aug. 31, 1998-- Bridgestone/Firestone (BFS) announced today record sales and net earnings for the first half of 1998.First-half sales reached $3.6 billion, compared with $3.4 billion last year and net earnings for the period were $149 million, a substantial increase over last year's first-half income of $101.3 million.
Bridgestone Corp., Bridgestone/Firestone's parent company, also released its first half consolidated financial results today. Consolidated, or worldwide, group sales totaled yen 1,090,204 million ($8.2 billion)(1), and consolidated net earnings after tax were yen 46,669 million ($351 million).
BFS Chairman and Chief Executive Officer Masatoshi Ono said the strong first half reflected gains in several areas, including the North American replacement and original equipment markets, as well as strong results in Latin America.
"Our first half results indicate that we are on track for another record-breaking year at Bridgestone/Firestone," Ono said. "These numbers exceed our original budget and reflect higher sales and net earnings in many divisions. All of our tire divisions have been working very hard to help Bridestone Corporation reach its goal of 20 percent world market share by the year 2000, and our non-tire divisions have also made significant contributions to our successful first half."
Bridgestone/Firestone forecasts total sales of $7.5 billion for 1998 and net earnings of $300 million, up from $7.1 billion and $208 million in 1997.
Bridgestone Corp. forecasts that consolidated sales for 1998 will increase 2.7 percent, from yen 2,170,802 million in 1997 to yen 2,230,000 million ($17.4 billion)(2), and net earnings will rise 155 percent, from yen 39,158 million in 1997 to yen 100,000 million ($781 million) this year.
Non-consolidated sales for Bridgestone Corp. in the first half of 1998 were yen 358.6 billion ($2.7 billion) and net earnings were yen 23.9 billion ($181 million)(3).
Tokyo-based Bridgestone Corp. 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 and sporting goods, that are sold in more than 150 nations and territories.
Nashville-based Bridgestone/Firestone is the largest wholly owned subsidiary of Bridgestone Corp. Bridgestone/Firestone develops, manufactures and markets Bridgestone, Firestone, Dayton and associate and private brand tires. The company also produces Firestone air springs, roofing materials, synthetic rubber and industrial fibers and textiles.
Consolidated Statements of Earnings
Bridgestone Corp. and Consolidated Subsidiaries
1998 First-Half
(Six months ended June 30, 1998)
(Millions of Japanese yen)
Net sales 1,090,204
Cost of sales 684,667
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Gross profit 405,537
Selling, General and Administrative Expenses 304,007
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Operating profit 101,530
Other Income (Expenses):
Interest and dividend income 3,095
Interest expense (9,764)
Other, net (12,815)
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Earnings before income taxes, minority interests,
and equity in earnings of affiliates 82,046
Income taxes 33,610
Earnings before minority interests and equity
in earnings of affiliates 48,436
Minority interests (2,352)
Equity in Earnings of Affiliates 585
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Net earnings 46,669
(Japanese yen)
Net Earnings per Unit Share -- per 1,000 Shares (Basic) 56,715
(1) Dollar equivalents for the results were computed at the rate of
yen 133 to the U.S. dollar. (2) Dollar equivalents for the forecast were computed at the rate of
yen 128 to the U.S. dollar. (3) A statement of earnings for Bridgestone Corp. is attached.