Bridgestone 2002 Annual Report Download - page 23

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21
coverage (the sum of operating income and interest and dividend
income divided by interest expense) rose to 11.6, from 4.6 in the
previous year.
Interest coverage
(times)
FY 2002 2001 2000 1999 1998
11.6 4.6 8.1 16.9 13.8
The Companies recorded ¥36.9 billion ($308 million) in impair-
ment losses on assets at European tire plants (Note 11). That com-
pares with a charge of ¥93.0 billion under the same item in the
previous year, which pertained mainly to fixed assets at North
American tire plants. The Companies posted no loss in 2002 in
connection with the 2000 voluntary recall in North America. They
registered a loss of ¥80.4 billion under that item in the previous
year.
Income before income taxes and minority interests totaled
¥110.9 billion ($925 million), compared with a pretax loss
of ¥128.8 billion in the previous year. Income taxes totaled
¥61.2 billion ($510 million), compared with a net tax benefit of
¥149.0 billion in the previous year, and minority interests were
¥4.4 billion ($37 million), compared with ¥2.8 billion in the
previous year.
Net income increased 161.0%, to ¥45.4 billion ($378 million),
and diluted net income per share increased 157.0%, to ¥51.89
($0.43). The Company maintained its cash dividend per share at
¥16.0 ($0.13).
Net return on sales
(% of net sales)
FY 2002 2001 2000 1999 1998
2.0 0.8 0.9 4.3 4.7
Net return on shareholders’ equity
(% of simple average of year-end shareholders’ equity)
FY 2002 2001 2000 1999 1998
5.6 2.2 2.3 12.3 15.6
Net return on assets
(% of simple average of year-end total assets)
FY 2002 2001 2000 1999 1998
2.0 0.8 0.9 4.9 5.8
Financial Position
Shareholders’ equity declined 4.7%, to ¥796.0 billion ($6,639
million), and the ratio of shareholders’ equity to total assets
rose to 37.1% at year-end, from 34.2% a year earlier. The
decline in shareholders’ equity included an increase of ¥35.9
billion ($299 million) in the charge for minimum pension
liability adjustments, to ¥39.5 billion ($329 million). Those
adjustments reflected the effect of declining stock prices on
the value of pension plan assets at the Companies’ operations
in the Americas. The decline in shareholders’ equity also
included an increase of ¥34.5 billion ($288 million) in foreign
currency translation adjustments, to ¥149.0 billion ($1,243
million). Retained earnings increased 4.6%, to ¥701.8 billion
($5,854 million).
Total assets declined 12.3%, to ¥2,143.9 billion ($17,881
million). A 10.5% decline in current assets, to ¥1,137.6 billion
($9,488 million), reflected a reduction in cash holdings and a
decline in notes and accounts receivable. A 13.6% decline in net
property, plant and equipment reflected the charge for impairment
losses on assets at the Companies’ European plants. A 15.3%
decline in total investments and other assets resulted mainly from
a decline in deferred income taxes.
98 99 00 01 02
¥ billion
200
400
600
800
1,000
0
Shareholders’ equity
98 99 00 01 02
¥ billion
500
1,000
1,500
2,000
2,500
0
Total assets
98 99 00 01 02
%
10
20
30
40
50
0
Ratio of shareholders’ equity to total assets