Bridgestone 2008 Annual Report Download - page 14

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19%
SEGMENT HIGHLIGHTS
Bridgestone Corporation and Subsidiaries
Years ended December 31, 2008, 2007, 2006, 2005, and 2004
TIRE BUSINESS
In the tire segment, the Group worked to maximize its sales momentum by introducing
appealing new products in domestic and overseas markets and bolstered its operations,
primarily in products identied as strategic products, through carefully determined steps,
such as improving and expanding strategic production sites around the world. However, the
fourth quarter, in particular, was marked by a dramatic decline in global automotive
production and by sluggish demand in the replacement market, which had a major effect on
sales. As a result, net sales in the tire segment totaled ¥2,622.9 billion, a 5% decrease from
scal 2007, due in part to the exchange impact of the stronger Japanese yen. With a
signicant impact from such factors as sharply higher prices for raw materials, operating
income decreased 52%, to ¥92.8 billion.
DIVERSIFIED PRODUCTS BUSINESS
In the diversied products segment, net sales totaled ¥611.5 billion, a 4% decrease
from scal 2007, due in part to the appreciation of the Japanese yen. Sharply higher
prices for raw materials had a signicant effect on operating income, which was down
29%, to ¥38.7 billion.
CapitalExpenditures
¥ billion
70X30.5
2008
2007
2006
2005
2004
255.8
257.2
232.0
183.1
170.2
70X30.5
2008
2007
2006
2005
2004
2,622.9
2,750.4
2,393.2
2,153.0
1,928.0
3.5%
7.1
5.8
7.8
8.3
NetSales /OperatingIncomeMargin
¥ billion /%
70X30.5
2008
2007
2006
2005
2004
611.5
639.8
598.1
538.4
488.7
6.3%
8.6
8.7
8.5
7.5
CapitalExpenditures
¥ billion
70X30.5
2008
2007
2006
2005
2004
27.4
32.8
30.5
25.2
22.2
NetSales /OperatingIncomeMargin
¥ billion /%
Note: Net sales exclude inter-segment transactions.
81%
Business Segments
12