From a press release issued by Bridgestone:

BRIDGESTONE AMERICAS HOLDING, INC.

Bridgestone Corporation Announces 2003 Consolidated Financial Results

Bridgestone Americas Posts Full-Year Profit,
Continuing Its Strengthening of Sales and Operations in the Americas

NASHVILLE, Tenn. – Bridgestone Corporation, parent company of Bridgestone Americas Holding, Inc. (BSAH), today announced that its consolidated, or worldwide, net income for fiscal year 2003 increased 96 percent, to $800 million (USD), on a 2 percent increase in net sales, to $21.5 billion. Operating income was basically unchanged, at $1.7 billion.
In the Americas, BSAH 2003 net sales and operating income were approximately $8.2 billion and $190 million, respectively. Net income (profit) totaled $78 million. The performance for 2003 represents a 7 percent increase in total sales revenue over 2002 led by a strong performance in the Bridgestone brand and continuing growth in sales of the Firestone brand.

“Continued growth in major brand and high performance tire sales in 2003 demonstrated that our new products and product enhancements have been well received by the market,” said John Vispo, BSAH controller. “The results are continuing evidence that the company is clearly on the road to financial stability.”

While the results reflect the impressive performance of two BSAH subsidiaries, BFS Retail & Commercial Operations, LLC and BFS Diversified Products, LLC, and the companies that comprise the Bridgestone/Firestone Latin America operating unit, which all reported improved operating profit over 2002, the company’s core business, Bridgestone/Firestone North American Tire, LLC (BFNT), is still not profitable.

“Clearly, the fact that BSAH is profitable even in the face of an increasingly difficult market – increasing raw material prices, and increasing pension and health care costs – our success can once again be attributed to the efforts of our 50,000 employees and loyal stores and dealers across the Americas who sell our products,” said Vispo, who is also CFO and vice president of BFNT.

Additional factors that were cited as contributing to the 2003 full-year results include the operation of the company’s tire plants at near capacity levels and the success of restructuring measures that have led to increased efficiency and lower costs, including the financial restructuring of the company’s Latin American subsidiaries that was concluded in 2002.

In addition to the positive effects of its restructuring efforts, the company reported increasing strength in unit sales of truck and bus tires. While overall unit sales of passenger and light truck tires declined slightly due to decreases in sales of original equipment and associate brand tires, sales of Bridgestone brand replacement and original equipment passenger and light truck tires continued their strong growth and sales of replacement market Firestone-brand passenger and light truck tires continued to increase, a trend noted in the second half of 2002.

Improving the capabilities and flexibility of its tire plants, increasing operating efficiencies and targeting sales volume growth will continue to be the company’s focus in 2004 because the company’s core business, BFNT, is still not profitable.

“The road ahead will be a difficult one. We will continue to be faced with high raw material cost and increasing pension and health care costs,” Vispo said. “We plan to address these challenges through improved productivity, cost containment efforts and recently implemented price increases.”

Bridgestone Corporation, headquartered in Tokyo, is the world’s largest tire and rubber company. In addition to tires for use in wide variety of applications, it manufactures a broad range of diversified products, which include industrial rubber and chemical products and sporting goods. Its products are sold in over 150 nations and territories around the world.

Nashville-based Bridgestone Americas Holding, Inc. is the U.S. subsidiary of the Bridgestone Corporation. BSAH, through its subsidiaries, develops, manufactures and markets a wide range of Bridgestone, Firestone, Dayton and associate and private brand tires to address the needs of a broad range of customers, including consumers, automotive and commercial vehicle original equipment manufacturers and those in the agricultural, forestry and mining industries. The companies also produce air springs, roofing materials, synthetic rubber and industrial fibers and textiles and operate the world’s largest chain of automotive tire and service centers.

1) Dollar equivalents for the 2003 results were computed at a rate of ¥107.13 to the U.S. dollar.

2) All Bridgestone Corporation figures are consolidated, or worldwide, basis.