Bridgestone 2009 Annual Report Download

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CHALLENGES AND OPPORTUNITIES
Annual Report 2009
Operational Review

Table of contents

  • Page 1
    CHALLENGES AND OPPORTUNITIES Annual Report 2009 Operational Review

  • Page 2
    ... ExPANDED ITS OPERATIONS, CENTERED ON TIRE PRODUCTION, AND TODAY, THE GROUP HAS ABOUT 190 MANUFACTURING PLANTS LOCATED IN 26 COUNTRIES AROUND THE WORLD. CONTENTS 02 MESSAGE TO OUR STAKEHOLDERS PERFORMANCE 05 FINANCIAL HIGHLIGHTS 06 SEGMENT HIGHLIGHTS 08 FISCAL 2009 MAJOR NEWS FLOW 11...

  • Page 3
    ...motorcycles, construction and mining vehicles, and aircraft. Its tire operations extend across a wide range of fields, from raw material production to sales and maintenance, as well as retread solutions businesses. In diversified products, another major pillar of Bridgestone's operations, the Group...

  • Page 4
    ... December 31, 2009, Bridgestone Corporation recorded declines in sales and profitability. Net sales were down 20%, to ¥2,597.0 billion; operating income declined 42%, to ¥75.7 billion; and net income was down 90%, to ¥1.0 billion. Since the fourth quarter of 2008, the global economic slump has...

  • Page 5
    ..., whether from developing or developed countries. We are also focused on quickly expanding our production capacity, as demonstrated by the fact that production at the Kitakyushu Plant, where we manufacture advanced technology ultralarge off-the-road radial tires, began three Annual Report 2009 03

  • Page 6
    ... of high-cost tire manufacturing facilities in Australia and New Zealand, and the realignment of the steel cord business in Europe and China. In addition, we have taken steps to reduce inventories throughout the entire supply chain, from raw materials to product inventories in our retail outlets...

  • Page 7
    FINANCIAL HIGHLIGHTS Bridgestone Corporation and Subsidiaries Years ended December 31, 2009, 2008, and 2007 2009 2008 2007 Millions of yen 2009/2008 Percent change 2009 Thousands of U.S. dollars1 Net Sales Overseas Sales Operating Income Net Income Total Equity Total Assets Capital ...

  • Page 8
    ...and other Sporting goods: Golf balls, golf clubs, other sporting goods, and other Bicycles: Bicycles, bicycle-related goods, and other Other: Finance, and other Net Sales by Business Segment Net Sales/ Operating Income Margin ¥ billion /% Capital Expenditures ¥ billion 2009 2008 2007 2006 2005...

  • Page 9
    ... SEGMENTS Bridgestone Corporation and Subsidiaries Years ended December 31, 2009, 2008, 2007, 2006, and 2005 JAPAN Net Sales ¥ billion Operating Income/ Operating Income Margin ¥ billion /% Net Sales by Geographic Segment 2009 2008 2007 2006 2005 680.3 864.9 941.5 896.7 858.5 2009 2008 2007...

  • Page 10
    ... 2009 MAJOR NEwS FLOw JANUARY • Bridgestone Americas Tire Operations announces the suspension of the MARCH • Bridgestone introduces the third generation of runflat tires. 1 st Quarter production of passenger and light truck tire manufacturing at the LaVergne Plant in LaVergne, Tennessee...

  • Page 11
    ... all-flexible electronic paper display. DECEMBER • Bridgestone announces that the Toyota Sienna will be the first vehicle to fit the third generation of runflat tires as standard equipment. A ceremony before construction of a plant for retread materials in Thailand EVA film for solar modules...

  • Page 12
    ...-looking measures and took thoroughgoing steps to secure profits in the near term. In this sense, the management environment in fiscal 2009 presented a major opportunity for the Group. In this section, we introduce the "Lean and Strategic" policies that we implemented. 10 Bridgestone Corporation

  • Page 13
    ...steps to consolidate production at manufacturing sites that are truly competitive. One important restructuring initiative was the decision to close Bridgestone Australia Ltd.'s Adelaide Plant and Bridgestone New Zealand Ltd.'s Christchurch Plant. These closures were announced in October 2009. On the...

  • Page 14
    ... way, we strive to develop products and services that add new value. We are working to develop environmentally friendly products that satisfy Bridgestone's environmental standards in six areas: reduction of CO2 emissions, energy conservation, resource conservation, recycling, noise reduction, and...

  • Page 15
    ... independently improve ride comfort, Bridgestone will select the appropriate technology when it develops products for commercial application, based on tire size, the weight of the vehicle, and when specific technology is available for practical application. TURANZA EL400 RFT Annual Report 2009 13

  • Page 16
    ... on winning even more contracts, we plan to add 10 more domestic locations by 2013. In July 2009, we announced our decision to open a retread materials plant in Thailand in order to respond to the strong growth in the Asia market. For the Bridgestone Group, that manufacturing site is a step toward...

  • Page 17
    ... opened Kitakyushu Plant in June 2009, three safety in comparison with tires not featuring the RRR months ahead of schedule. We plan to continue investing resources construction. in this market in order to further increase our market share. AIRCRAFT RADIALS The Bridgestone Group is one of the world...

  • Page 18
    ... demand for solar cells worldwide, the Bridgestone Group increased production at the Iwata Plant in 2007, while in 2008 the Group announced two additional investments to further increase production. In addition, in October 2009 we announced a decision to establish a new EVA film production line at...

  • Page 19
    ... electronic circuit board. The Electronic Paper Display for Viewing Electronic Information has been selected by the Kansai Urban Banking Corporation for use in the systems that support employees when they are working outside of the office. Moving forward, we will continue to pursue new uses and new...

  • Page 20
    ... the Board of Directors and other executive meetings, interviews with directors to ascertain the status of operations, reviews of important business documents, and on-site audits of business offices. Moreover, the corporate auditors meet with the representative directors to exchange information and...

  • Page 21
    ... 0QFSBUJPOBM $PNNJUUFF $&0BOE1SFTJEFOU $IBJSNBOPG UIF#PBSE employees of the parent company, Bridgestone Corporation, undergo privacy training and are provided access to related awareness programs to address this important issue. *OUFHSBUFE$43&OIBODFNFOU$PNNJUUFF $PSQPSBUF0GGJDFST...

  • Page 22
    ... both the management and employee levels. THE COMPANY'S CSR ACTIVITIES: POSITIVE ACTIONS IN THE COURSE OF OUR DAILY BUSINESS OPERATIONS AND ACTIVITIES We believe that it is important to enhance the CSR activities that are at the heart of management itself. This is the essence of all of our corporate...

  • Page 23
    ..., and the Group Safety Committee-the Integrated CSR Enhancement Committee promotes the concept of COMPONENT OF "22 CSR FOCUS POINTS" CSR-related management throughout the Bridgestone Group. In addition, we have established a department dedicated to CSR within our Corporate Planning Division, which...

  • Page 24
    ... Manufacture and sale of sporting goods JPY 1,720,000 Production and sale of carbon black JPY 50,000 Lending, purchasing of sales receivables, and outsourced processing of accounting and salary payments Belgium Bridgestone Europe NV/SA Bridgestone Aircraft Tire (Europe) S.A. Brazil Canada Chile...

  • Page 25
    ... Bandag, LLC Bridgestone Americas Tire Operations, LLC Bridgestone Retail Operations, LLC Firestone Diversified Products, LLC Morgan Tire & Auto, LLC Bridgestone APM Company Bridgestone Aircraft Tire (USA), Inc. Venezuela Bridgestone Firestone Venezolana, C.A. 100.0% 100.0% Annual Report 2009...

  • Page 26
    ... Tire Sales Planning and Administration Tire Production Technology Development; Concurrently Director, Process Engineering Development Division Sakie Tachibana Fukushima* Takao Enkawa*1 *1 Outside Director set forth in Article 2-15 of the Corporate Law of Japan Takashi Urano Yutaka Yamaguchi...

  • Page 27
    ..., Japan Technical Centers Bridgestone Corporation: Tokyo and Yokohama, Japan Bridgestone Americas: Akron, Ohio, United States Bridgestone Europe: Rome, Italy Common Stock Traded Tokyo, Nagoya, Osaka, Fukuoka Common Stock Price Range (Tokyo Stock Exchange) 2003 2004 2005 2006 2007 2008 2009...

  • Page 28
    Bridgestone Corporation 10-1, Kyobashi 1-chome, Chuo-ku, Tokyo 104-8340, Japan www.bridgestone.co.jp April 2010