Bridgestone 2004 Annual Report Download - page 17

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Regional Review
Bridgestone Group’s two tire plants in Cuernavaca and Mexico City is at least as high as at its other
North American plants.
Underpinning our tire manufacturing in the Americas, as in other regions, are in-house capabili-
ties for producing raw materials. Our production network in the Americas includes plants for sup-
plying synthetic rubber, steel cord, and textile cord.
The Bridgestone Group’s sales and earnings performance in the Americas also benefited from large
contributions by the Latin American tire operations, by the retail business, and by the diversified
operations, which center on roofing materials, synthetic rubber, and air springs.
Leading the strong sales and earnings performance in Latin America in 2004 were the operations
in Brazil, Argentina, and Venezuela. Demand was strong throughout the region, and the business
results also benefited from a stabilization of currency exchange rates.
Bridgestone Group companies are expanding supply capacity in Latin America to serve the struc-
tural expansion of demand occasioned by growth in vehicle ownership. That includes building a
plant in the Brazilian state of Bahia to produce passenger car tires. It also includes expanding plants
that produce truck and bus tires in Brazil and passenger car tires in Costa Rica. As in Mexico,
Brazilians’ impressive work ethic was a convincing factor in our decision to add a plant in Brazil.
The Bridgestone Group’s network of more than 2,200 company-owned stores in North America
generates revenues and earnings through automotive service, as well as through tire sales. That net-
work thus buttresses the group’s earnings structure in North America, along with underpinning its
tire marketing there.
In diversified operations, Bridgestone Americas is the market leader in rubberized roofing materi-
als and is a leading supplier of air springs for truck trailers. Its business in synthetic rubber is anoth-
er important contributor to sales and earnings. Bridgestone Group companies in the Americas also
produce and market automotive antivibration components, golf balls, and polyurethane foam for
automotive seating.
Two thousand four was the third consecutive year that stores and team members
in the Firestone Tire & Service Center network sponsored and participated in
Keep America Beautiful’s Great American Cleanup. That program, which runs
from March to May, is the nation’s largest cleanup and community improvement
undertaking of its kind. President George W. Bush served as the program’s hon-
orary chairman for the second year in a row. The cleanup gathered more than
1,220,000 scrap tires for recycling, a 33% increase over 2003. Each of the 1,500
Firestone Tire & Service Centers served as a community drop-off spot for residen-
tial used engine oil, automotive batteries, and scrap tires from community
cleanups.
The roofing materials business remains a
vigorous contributor to sales and earnings
growth in the Bridgestone Group’s operations
in the Americas. The group is expanding
production capacity for roofing materials and
is adding new products. Meanwhile, we are
exploring possibilities for broadened interna-
tional marketing in roofing materials.
The legendary IndyCar racing series unfolds
exclusively on our Firestone-brand tires.
Similarly, all of the teams in the Champ Car
series race on our Bridgestone-brand tires.
Latin American vigor
Retail and diversified
momentum, too