Bridgestone 2003 Annual Report Download - page 23

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21
2003 ANNUAL REPORT
Tire products handled by the Companies include tires for passenger cars and light trucks, for
trucks and buses, and for earthmoving equipment, agricultural machinery, aircraft, subway trains
and motorcycles. The Companies together are the world’s largest supplier or one of the three
largest suppliers in each principal category of tire products.
Sales in other operations increased 3.9% over the same period of the previous year, to ¥467.5
billion ($4,364 million). The Companies’ business in diversified products includes antivibration
components and air springs for automobiles, industrial vehicles, earthmoving equipment, and
agricultural machinery; construction and civil engineering materials; industrial rubber products,
including conveyor belts, marine hoses and crawler tracks; chemical products, including urethane
foam for automotive seats and for electrical appliance insulation; precision components for elec-
tronic equipment; bicycles; sporting goods, including golf and tennis equipment; and other items.
Composition of sales by industry segment
(% of net sales)
FY 2003 2002
Tires 79.7 80.0
Other 20.3 20.0
100.0 100.0
The Companies’ business in diversified operations centers on Japan. In 2003, sales in this
segment benefited from strong growth in Japanese sales of functional films, precision rollers,
and other electro-materials. Another contributor to sales growth was an increase in sales of
automotive components. Growth in Japanese exports of industrial products and chemical prod-
ucts also contributed to the overall sales gain. Outside Japan, the Companies’ operations in
the Americas have strong market positions 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 2.6%, to ¥1,441.6 billion ($13,457 million), and gross profit rose 2.4%, to
¥862.3 billion ($8,049 million). The gross profit margin was 37.4%, compared with 37.5% in the
previous year. Gross profit thus rose in step with net sales and reflected gains in unit sales volume
despite increases in raw material costs and pension costs.
Gross profit margin
(% of net sales)
FY 2003 2002 2001 2000 1999
37.4 37.5 35.5 36.4 38.8
0
500
1,000
1,500
2,000
2,500
1999 2000 2001 2002 2003
¥ billion
0
500
1,000
1,500
2,000
2,500
1999 2000 2001 2002 2003
¥ billion
0
30
60
90
120
150
1999 2000 2001 2002 2003
¥
¥/$
¥/e
Net Sales Sales of TiresCurrency Exchange Rates
(annual average rates)