Bridgestone Corp Announces 1998 Consolidated Financial Results
26 February 1999
Bridgestone Corporation Announces 1998 Consolidated Financial Results; U.S. Subsidiary Contributes Record Sales and Net Earnings
NASHVILLE, Tenn.--(AutomotiveWire)--Feb. 26, 1999--Bridgestone Corporation, parent company of Bridgestone/Firestone, Inc. (BFS), announced today that its consolidated, or worldwide, after tax net earnings reached a record high in 1998. Net earnings surged 167.2 percent to yen 104,626 million (US $798 million) on a three percent increase in net sales. Net sales in 1998 were yen 2,236,698 million (US $17.074 billion), also a new record for Bridgestone.Diluted net earnings per share totaled yen 123.0 (US $0.93), up 162.7 percent over the previous year. Consolidated operating profit in 1998 increased 12.4 percent to yen 233,111 million, or US $1.779 billion, from yen 207,457 million in 1997. Consolidated recurring profit increased 3.9 percent, to yen 187,419 million, or US $1.430 billion last year.
Bridgestone/Firestone, Inc. 1998 sales were $7.4 billion and net earnings were $285 million, a $300 million increase in sales and a $78 million increase in net earnings over 1997 -- both new records for the U.S. subsidiary.
Bridgestone Corporation's net earnings surge followed large special charges taken in 1997 in connection with the amortization of all remaining goodwill and steps taken to fortify the company's pension plan.
Bridgestone Corporation forecasts that consolidated net earnings in 1999 will remain at the same level as 1998 and that basic (undiluted) net earnings per share will total yen 123.89 (US $1.07) compared to yen 126.27 in 1998. The projection for earnings per share reflects the issuance of 8,624,000 new shares in connection with the January 1, 1999 acquisition of the remaining 49 percent of Bridgestone Metalpha. Management's projections call for a 4.8 percent decline in net sales, to yen 2,130,000 million (US $18.521 billion) reflecting the appreciation of the yen.
In spite of continuing economic challenges in Japan and the rest of Asia, Bridgestone's continuing growth in operating profitability was due in significant part to excellent results in North America and Europe. Demand in the U.S. continued to be vigorous and the economy remained strong.
Financial results by segment
1. Industry segments
Tire 1997 Tire 1998 Non-tire 1997 Non-tire 1998
--------- --------- ------------- -------------
Sales (Yen Million) 1,685,388 1,772,226 485,414 464,472
Sales ($ Million) 13,928 13,528 4,011 3,546
Ratio 77.6% 79.2% 22.4% 20.8%
Total 1997 Total 1998
---------- ----------
Sales (Yen Million) 2,170,802 2,236,698
Sales ($ Million) 17,940 17,074
2. Geographic segments
Japan 1997 Japan 1998 Outside Japan Outside Japan
1997 1998
---------- ---------- ------------- -------------
Sales (Yen Million) 938,655 866,335 1,232,146 1,370,363
Sales ($ Million) 7,757 6,613 10,183 10,461
Ratio 43.2% 38.7% 56.8% 61.3%
Total 1997 Total 1998
---------- ----------
Sales (Yen Million) 2,170,802 2,236,698
Sales ($ Million) 17,940 17,074
Note: Sales figures in Japan are those of Bridgestone Corporation and
Japan-based subsidiary companies to third parties. Sales
figures outside Japan are those of foreign-based subsidiary
companies to third parties.
3. BFS sales and net earnings
BFS 1997 BFS 1998
-------- --------
Sales $7.1 billion $7.4 billion
Net earnings $207 million $285 million
Bridgestone Corporation, headquartered in Tokyo, is a leader among the world's tire companies, producing a complete line of tires which account for 79 percent of its sales worldwide. It also manufactures a wide range of diversified products which include industrial rubber and chemical products and sporting goods. These products are sold in more than 150 nations and territories around the world.
Nashville-based Bridgestone/Firestone, Inc. is the largest subsidiary of Bridgestone Corporation of Japan, the world's largest tire and rubber company. Bridgestone/Firestone develops, manufactures, and markets Bridgestone, Firestone, Dayton and private-brand tires. The company also produces Firestone air springs, roofing materials, synthetic rubber, and industrial fibers and textiles.
Note:
1) Dollar equivalents for the 1998 results were computed at a rate
of yen 131 to the U.S. dollar, but those for the forecasts at a
rate of yen 115 to the U.S. dollar.
2) Dollar equivalents for the 1997 results were computed at a rate
of yen 121.0 to the U.S. dollar.
3) All figures are on a consolidated, or worldwide basis.