Bridgestone 2002 Annual Report Download - page 22

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20
isolating components and air springs for automobiles, industrial
vehicles, earthmoving equipment and agricultural machinery; con-
struction and civil engineering materials; industrial rubber prod-
ucts, including conveyor belts, marine hoses and crawler tracks;
chemical products, including urethane foam for automotive seats
and for electrical appliance insulation; precision components for
electronic equipment; bicycles; sporting goods, including golf and
tennis equipment; and other items.
Composition of sales by industry segment
(% of net sales)
FY 2002 2001
Tires 80.0 79.1
Other 20.0 20.9
100.0 100.0
In 2002, strong gains in sales of chemical and industrial rubber
products outside Japan and solid growth in Japanese sales of preci-
sion components for office equipment offset declines in Japanese
sales of sporting goods, bicycles and civil engineering products.
Japan is the principal market for the Companies’ diversified prod-
ucts. The weakening of the yen therefore benefited sales less in
this segment than it did in tires. In markets outside Japan, the
Companies’ operations in the Americas have strong market posi-
tions in roofing materials and in air springs for trucks. The
Companies also market rubber tracks, conveyor belts and other
industrial rubber products in several nations.
Expenses and Net Income
Cost of sales increased 2.1%, to ¥1,405.4 billion ($11,721 mil-
lion), and gross profit rose 11.2%, to ¥842.4 billion ($7,026 mil-
lion). The gross profit margin rose to 37.5%, from 35.5% in the
previous year. Gross profitability reflected gains in unit sales
volume.
Gross profit margin
(% of net sales)
FY 2002 2001 2000 1999 1998
37.5 35.5 36.4 38.8 38.1
Selling, general and administrative expenses increased 3.0%,
to ¥658.5 billion ($5,492 million). Research and development
expenses increased 8.6%, to ¥68.2 billion ($568 million), and
advertising costs declined 3.5%, to ¥99.5 billion ($830 million).
The number of employees at the Companies increased 2.0%, to
106,846 at year-end.
Selling, general and administrative expenses
(% of net sales)
FY 2002 2001 2000 1999 1998
29.3 30.0 28.3 27.4 27.0
Operating income increased 55.8%, to ¥183.9 billion ($1,533
million), and the operating income margin rose to 8.2%, from
5.5% in the previous year. The improvement in operating prof-
itability reflected gains in operating profitability at operations
outside Japan, especially in the Americas.
Operating income margin
(% of net sales)
FY 2002 2001 2000 1999 1998
8.2 5.5 8.1 11.4 11.1
Net interest expense declined 48.9%, to ¥11.4 billion ($95
million), reflecting repayments of long-term borrowings. Interest
Operating income
98 99 00 01 02
¥ billion
60
120
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240
300
0
98 99 00 01 02
¥ billion ¥
30
60
90
120
150
0
30
60
90
120
150
0
Net income
Diluted net income per share
(right scale)
Sales of other products
98 99 00 01 02
¥ billion
100
200
300
400
500
0