Bridgestone 2002 Annual Report Download - page 24

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2002 2001 2000 1999
Net sales: ¥2,247,769 ¥2,133,825 ¥2,006,902 ¥2,085,720
Tires 1,797,598 1,687,235 1,560,182 1,638,304
Other 450,171 446,590 446,720 447,416
Operating income 183,862 118,023 161,785 236,777
Net income 45,379 17,389 17,741 88,690
Net income per share (in yen):
Basic 51.97 20.20 20.60 103.98
Diluted 51.89 20.19 20.59 102.96
Total assets 2,143,928 2,443,793 2,038,578 1,792,744
Shareholders’ equity 796,013 835,144 778,713 743,069
Ratio of shareholders’ equity to total assets (%) 37.1 34.2 38.2 41.4
Additions to property, plant and equipment 116,764 104,313 137,772 175,495
Depreciation and amortization 119,466 132,920 119,925 118,464
Eleven-year summary
Bridgestone Corporation and Subsidiaries
Years ended December 31
The Companies’ debt to equity and debt ratio (interest-bearing
debt divided by the sum of shareholders’ equity and interest-
bearing debt) declined to 0.37 at year-end, from 0.48 a year
earlier. Total interest-bearing debt declined 38.6%, to ¥470.2
billion ($3,921 million), on account of declines of 45.1% in
short-term borrowings, to ¥100.4 billion ($837 million); 45.3%
in the current portion of long-term debt, to ¥81.1 billion ($677
million); and 33.6% in long-term debt, to ¥288.7 billion ($2,408
million).
Debt/equity and debt ratio
(times)
FY 2002 2001 2000 1999 1998
0.37 0.48 0.40 0.31 0.35
Purchases of property plant and equipment increased 11.9%,
to ¥116.8 billion ($974 million). The chief targets of investment
were equipment renewals, new technologies and equipment
for raising productivity, equipment and facilities for expanding
production capacity, facilities for strengthening logistics and mar-
keting and equipment and facilities for developing new products
and technologies.
The Companies have built a global network of 45 tire plants and
65 plants for diversified products in 24 nations. That geographical
scope is a core strategic strength for the Companies.
Net cash provided by operating activities increased 84.4%, to
¥269.1 billion ($2,244 million). That increase resulted mainly
from the strong improvement in pretax profitability.
Outlook
Management projects that net income in 2003 will increase
approximately 54%, to about ¥70 billion, on essentially no change
in net sales. They have assumed an average exchange rate of ¥120
to the U.S. dollar in preparing these projections. Management
plans to maintain the annual dividend at ¥16 per share in 2003.
In Japan, management expects that demand for original equip-
ment and replacement tires will remain at about the same levels
as in 2002. And they expect the Companies’ unit sales of tires in
Japan to remain at the same levels as in 2002.
Management projects an increase in unit tire sales in the
Americas amid expected solid growth in demand. Underlying
expectations of growth in the Americas are continuing expansion
of the Companies’ sales channels, growing sales momentum for
Bridgestone-brand tires, renewed customer confidence in the
Firestone brand and expanded business with operators of truck
and bus fleets.
In Europe, management projects an increase in unit sales of
tires. They expect their European operations to achieve that
increase despite an expected small decline in unit demand. Their
plans for promoting growth center on stepped-up, pan-European
marketing focused on high-value products.
Other regions are poised to remain the fastest-growing geo-
graphical segment for the Companies. Unit sales are growing
especially rapidly in China and Southeast Asia and also continue
to grow in India, the Middle East and South Africa.
Operating income margins will suffer from the rising costs of
natural rubber and other raw materials and from escalating price