Bridgestone 2004 Annual Report Download - page 5

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Message from the President
Our new proving ground in Italy, opened in 2004, has
strengthened our capabilities in developing high- and ultrahigh-
performance tires for Europe. With an eye to optimizing tire
performance, we continue to conduct research on peripheral
vehicle systems, and we unveiled a greatly improved version of
our in-wheel motor system for electric cars in 2004. Our expand-
ing activity in developing and producing raw materials also rein-
forces our technological capabilities in tires.
Strategic R&D is strengthening our business in diversified
products, too. A recent example is our Electronic Liquid Powder
breakthrough in electronic displays. We will begin commercializ-
ing that technology in 2005, starting with displays for rewritable
price tags.
Responsible Growth
We expect operating income to decline 14% in 2005, to about
¥170 billion, despite a projected 3% increase in net sales, to
¥2,500 billion. We expect net income to rise 22%, to ¥140 billion,
its highest level ever, largely because of a special gain that we will
record in connection with our Japanese pension plan.
Raising prices has offset some, but not all, of the effect of
higher raw material costs, and operating profitability will also
reflect increased depreciation expenses and—most likely—the
continuing strength of the yen. In a worsening earnings environ-
ment, we are strengthening our structure of earnings through
price increases and through improvements in our sales port-
folio. We expect our capital spending program, mean-
while, to generate long-term returns that will exceed the
associated increase in depreciation.
Pursuing sustainable profitability is part of our efforts
to justify your confidence in our company. We con-
tinue working in the spirit of the Bridgestone Way,
“Trust and Pride,” to serve society with superior
quality while safeguarding the environment,
ensuring safe products and operations, and
fulfilling the highest standards of corporate
social responsibility.
April 2005
2004
Shigeo Watanabe
Chairman of the Board, CEO and President
TIMELINE
January
• Raise prices for tire exports to Asia, Oceania,
Middle East, Africa, and nations of former
Soviet Union.
February
• Begin supplying GREATEC extra-wide tires to
Japanese manufacturers of trucks and buses
• Cumulative shipments of runflat tires top one million
March
• Unveil world’s first mass-produced film-type filters
for plasma display panels
April
• Announce plans to expand production capacity for
small and medium-sized off-the-road radial tires
• Receive ninth consecutive supplier of the year
award from General Motors
May
• Announce agreement to supply runflat tires for
BMW’s new 6 Series models
June
• Raise prices for replacement tires in Japan
• Bridgestone Europe NV/SA opens new proving
ground in Italy
• Announce agreement to supply runflat tires for
Ferrari 612 Scaglietti
July
• Hold official opening for third tire plant in Thailand
August
• Begin producing urethane foam for automobile
seats at joint venture in China
September
• Announce plans for initial mass-production
deployment of revolutionary new production
system for tires—BIRD—at Hikone Plant
• Unveil improved in-wheel motor drive system for
electric vehicles
• Announce collaboration with Continental AG in tire-
pressure monitoring systems for trucks
• Hold official opening for third tire plant in China
October
• Establish Chinese tire headquarters
• Hold official opening for carbon black plant
in Thailand
• Announce plans to market electronic displays based
on original high-fluidity Electronic Liquid Powder
November
• Announce plans to purchase second rubber estate
in Indonesia
December
• Unveil tire simulation technology for
unprecedented range of surfaces
• Announce agreement to supply tires for Boeing’s
all-new 787 Dreamliner airliners
• Announce plans to build second tire plant in Brazil
• Begin producing runflat tires outside Japan for
first time at Poznan Plant, in Poland