Bridgestone Business report FY2007
Business Highlights
Financial
Overview
Major Factors of FY2007 Business Performance
Contracts
-The Company started to supply its tires as original equipment parts for new Audi "S8"models. The tire model supplied for Audi S8 is "Potenza RE050" with a size of 265/35R20 99Y XL for the front & the rear. New Audi S8 models distributed in Asia, including Japan, the United States and Europe will come with Potenza RE050. (From a press release on Apr. 25, 2007)
-The Company started to supply "Potenza RE050" & "Turanza ER300" as original equipment for all-new Mercedes-Benz C-Class models. (From a press release on Sep. 5, 2007)
-The Company started to supply its runflat tires as original equipment for the new BMW X5. The tire models are supplied as standard equipment for the new BMW X are "DUELER H/L 400 RFT" and "DUELER H/P SPORT RFT". (From a press release on Sep. 11, 2007)
-The Company will supply its runflat tires as original equipment for the new NISSAN GT-R. (From a press release on Nov. 16, 2007)
Business Reorganization
-Bridgestone Firestone de Mexico S.A. (BFMX), an overseas subsidiary of Bridgestone Americas Holding, Inc., announced on December 3, local time that it will close its plant for tires in Mexico City in the second half of 2008. (From an article in the Nikkan Jidosha Shimbun on Dec. 5, 2007)
| (in million JPY) | FY2007 | FY2006 | Rate of change (%) |
| Sales | 3,390,218 | 2,991,275 | 13.3 |
| Operating Profit | 249,961 | 190,876 | 30.9 |
| Tire segment | |||
| Sales | 2,755,992 | 2,396,946 | 15.0 |
| Operating Profit | 195,036 | 139,069 | 40.3 |
Major Factors of FY2007 Business Performance
| Segment/ Region |
Factors | |
| Tire Segment |
Positive Factor | -The Company released
new products in the domestic and international markets -The Company revamped its global production structure and focused more on its strategic products |
| Negative Factor | -Surging materials prices | |
| Japan | Positive Factor | -Greater sales of its strategic and high value-added tires |
| Negative Factor | -Surging materials prices | |
| Americas | Positive Factor | -Greater sales of repair tires for use in passenger vehicles and small trucks |
| Negative Factor | -A decrease in sales
of OEM tires used in passenger vehicles and small trucks -A large drop in sales of truck and bus tires |
|
| Europe | Positive Factor | -Greater sales of
tires for use in passenger vehicles and small trucks, as demand
for run-flat tires and other strategic tires was on the rise -A large increase in sales of truck and bus tires |
| Negative Factor | -Surging materials prices |
Contracts
-The Company started to supply its tires as original equipment parts for new Audi "S8"models. The tire model supplied for Audi S8 is "Potenza RE050" with a size of 265/35R20 99Y XL for the front & the rear. New Audi S8 models distributed in Asia, including Japan, the United States and Europe will come with Potenza RE050. (From a press release on Apr. 25, 2007)
-The Company started to supply "Potenza RE050" & "Turanza ER300" as original equipment for all-new Mercedes-Benz C-Class models. (From a press release on Sep. 5, 2007)
-The Company started to supply its runflat tires as original equipment for the new BMW X5. The tire models are supplied as standard equipment for the new BMW X are "DUELER H/L 400 RFT" and "DUELER H/P SPORT RFT". (From a press release on Sep. 11, 2007)
-The Company will supply its runflat tires as original equipment for the new NISSAN GT-R. (From a press release on Nov. 16, 2007)
Business Reorganization
-Bridgestone Firestone de Mexico S.A. (BFMX), an overseas subsidiary of Bridgestone Americas Holding, Inc., announced on December 3, local time that it will close its plant for tires in Mexico City in the second half of 2008. (From an article in the Nikkan Jidosha Shimbun on Dec. 5, 2007)
R&D
R&D
Structure
-The Company carries out a wide range of R&D activities on new materials, products, service technology, as well as production technology on a global basis. Its technology centers in Japan, the U.S.A. and Italy conduct R&D based on the demands of each market.
Number of R&D Facilities
Domestic R&D facilities
R&D Expenditure
Product Development
-The Company developed new "cooling fin" technology to cool the tire sidewall. This will enhance durability of a flat runflat tire and allow the development of SUV and minivan runflat tires, which was impossible in the past. It also allows the development of runflat tires for passenger vehicles in almost all sizes. The company intends to introduce the technology on commercial basis in around 2010 to factory equipped tires for new SUVs and other vehicles. The cooling fin technology uses disturbances in the airflow created by protrusions on the surface of the tire sidewall-that face in towards the center of the wheel-to cool the tire sidewall. (From an article in the Nikkan Jidosha Shimbun on Aug. 3, 2007)
-The Company carries out a wide range of R&D activities on new materials, products, service technology, as well as production technology on a global basis. Its technology centers in Japan, the U.S.A. and Italy conduct R&D based on the demands of each market.
Number of R&D Facilities
| North America | Central & South America |
Europe | Middle
East/ Africa |
Asia/ Oceania |
Japan | Total | |
| Technical Center | 1 | 0 | 1 | 0 | 1 | 2 | 5 |
| Proving Ground |
2 | 2 | 2 | 0 | 3 | 2 | 11 |
Domestic R&D facilities
| R&D Facility | Location |
| Technical Center | Chuo-ku, Tokyo |
| Technical Center for Diversified Products | Totsuka, Yokohama |
| Bridgestone Proving Grounds | Nasushiobara, Tochigi |
| Hokkaido Proving Grounds | Shibetsu, Hokkaido |
R&D Expenditure
| (in million JPY) | FY2007 | FY2006 | FY2005 |
| Overall | 86,700 | 86,600 | 79,400 |
| Tire segment | 68,900 | 71,400 | 65,100 |
Product Development
-The Company developed new "cooling fin" technology to cool the tire sidewall. This will enhance durability of a flat runflat tire and allow the development of SUV and minivan runflat tires, which was impossible in the past. It also allows the development of runflat tires for passenger vehicles in almost all sizes. The company intends to introduce the technology on commercial basis in around 2010 to factory equipped tires for new SUVs and other vehicles. The cooling fin technology uses disturbances in the airflow created by protrusions on the surface of the tire sidewall-that face in towards the center of the wheel-to cool the tire sidewall. (From an article in the Nikkan Jidosha Shimbun on Aug. 3, 2007)
Investment Activities
Capital
Expenditure
Recent Developments by Country
<India, Indonesia>
-The company will increase production capacity for passenger car and light truck radial tires in India and Indonesia. Approximately 21.5 billion yen will be spent in two plants by 2010. Additionally, P.T. Bridgestone Tire Indonesia established in 1999 and headquartered in Karawang will increase production capacity of tires in higher rim diameter category and high-performance tires for export. Approximately 15.5 billion yen will be spent on the project. (From an article in the Nikkan Jidosha Shimbun on Aug. 24, 2007)
<Mexico>
-Bridgestone Corporation (BSJ), Bridgestone Americas Holding, Inc. (BSAH), Bridgestone Firestone North American Tire, LLC (BFNT) and Bridgestone Neumﾃ｡ticos de Monterrey, S.A. de C.V. (BSMR) celebrated the grand opening of the new BSMR tire manufacturing facility in Monterrey, Nuevo Leon, Mexico on Nov. 7, 2007. With a production capacity of about 8,000 tires a day, the Monterrey plant has generated more than $200 million in investment to date. It is the first plant outside of Japan to use the new "BIRD (Bridgestone Innovative and Rational Development)", the world's first production system for tires that completely automates all stages of tire manufacturing, from the initial processing of materials to final inspection of the finished product. (From a press release on Nov. 8, 2007)
<South Africa>
-Bridgestone South Africa (Pty) Ltd.("BSAF"), a wholly-owned subsidiary of Bridgestone South Africa Holdings (Pty) Ltd., a holding company and a subsidiary of Bridgestone Corporation in South Africa, started mass production and shipping of runflat tires at its tire plant in Brits. (From a press release on Oct. 5, 2007)
<Poland>
-The Company held a groundbreaking ceremony of its new plant in Poland on Sep. 28. It will be the company's second truck and bus tire manufacturing operation in Europe, after the Bilbao Plant in Spain. (From an article in the Nikkan Jidosha Shimbun on Oct. 1, 2007)
<China>
-Bridgestone (Huizhou) Tire Co., Ltd. held an opening ceremony at its new tire plant in Huizhou City, Guangdong Province. The Chinese subsidiary will produce radial tires for trucks and buses at the new facility, which has a capacity to make 5,000 units daily. (From an article in the Nikkan Jidosha Shimbun on May 2, 2007)
<Brazil>
-Bridgestone Firestone do Brasil Industria e Comercio Ltda. (BFBR), a subsidiary of Bridgestone Americas Holding, Inc., held an opening ceremony to cerebrate the completion of its new plant in Bahia, Brazil on February 2. Built in the Pole of Camacari, Bahia with an investment of 160 million dollars, the new facility has a floor area of approximately 1 million square meters. It will take on some 500 employees to manufacture radial tires for passenger cars and light trucks. (From an article in the Nikkan Jidosha Shimbun on Feb. 8, 2007)
<Thailand>
-The Company will construct a new proving ground near its Nong Khae plant (Ayutthaya, Thailand) at the end of 2008. The 1.1 billion baht (3.4 billion yen) project, which will include transfer and expansion of the company's existing test course, has been approved by the Thailand Board of Investment. The new proving ground will be laid on a 540,000-square-meter land (more than 10 times as large as the existing one in Nong Khae plant); and will have a 3.3-kilometer high-speed circuit, a 48,000-square-meter ground for general test runs, as well as special proving courses for testing noise and driving comfort. (From an article in the Nikkan Jidosha Shimbun on Mar. 19, 2007)
| (in million JPY) | FY2007 | FY2006 | FY2005 |
|
Overall |
272,300 | 261,300 | 203,600 |
|
Tire business (Unconsolidated) |
N.A. | N.A. | 57,100 |
|
Tire business |
240,800 | 230,800 | 178,400 |
Recent Developments by Country
<India, Indonesia>
-The company will increase production capacity for passenger car and light truck radial tires in India and Indonesia. Approximately 21.5 billion yen will be spent in two plants by 2010. Additionally, P.T. Bridgestone Tire Indonesia established in 1999 and headquartered in Karawang will increase production capacity of tires in higher rim diameter category and high-performance tires for export. Approximately 15.5 billion yen will be spent on the project. (From an article in the Nikkan Jidosha Shimbun on Aug. 24, 2007)
<Mexico>
-Bridgestone Corporation (BSJ), Bridgestone Americas Holding, Inc. (BSAH), Bridgestone Firestone North American Tire, LLC (BFNT) and Bridgestone Neumﾃ｡ticos de Monterrey, S.A. de C.V. (BSMR) celebrated the grand opening of the new BSMR tire manufacturing facility in Monterrey, Nuevo Leon, Mexico on Nov. 7, 2007. With a production capacity of about 8,000 tires a day, the Monterrey plant has generated more than $200 million in investment to date. It is the first plant outside of Japan to use the new "BIRD (Bridgestone Innovative and Rational Development)", the world's first production system for tires that completely automates all stages of tire manufacturing, from the initial processing of materials to final inspection of the finished product. (From a press release on Nov. 8, 2007)
<South Africa>
-Bridgestone South Africa (Pty) Ltd.("BSAF"), a wholly-owned subsidiary of Bridgestone South Africa Holdings (Pty) Ltd., a holding company and a subsidiary of Bridgestone Corporation in South Africa, started mass production and shipping of runflat tires at its tire plant in Brits. (From a press release on Oct. 5, 2007)
<Poland>
-The Company held a groundbreaking ceremony of its new plant in Poland on Sep. 28. It will be the company's second truck and bus tire manufacturing operation in Europe, after the Bilbao Plant in Spain. (From an article in the Nikkan Jidosha Shimbun on Oct. 1, 2007)
<China>
-Bridgestone (Huizhou) Tire Co., Ltd. held an opening ceremony at its new tire plant in Huizhou City, Guangdong Province. The Chinese subsidiary will produce radial tires for trucks and buses at the new facility, which has a capacity to make 5,000 units daily. (From an article in the Nikkan Jidosha Shimbun on May 2, 2007)
<Brazil>
-Bridgestone Firestone do Brasil Industria e Comercio Ltda. (BFBR), a subsidiary of Bridgestone Americas Holding, Inc., held an opening ceremony to cerebrate the completion of its new plant in Bahia, Brazil on February 2. Built in the Pole of Camacari, Bahia with an investment of 160 million dollars, the new facility has a floor area of approximately 1 million square meters. It will take on some 500 employees to manufacture radial tires for passenger cars and light trucks. (From an article in the Nikkan Jidosha Shimbun on Feb. 8, 2007)
<Thailand>
-The Company will construct a new proving ground near its Nong Khae plant (Ayutthaya, Thailand) at the end of 2008. The 1.1 billion baht (3.4 billion yen) project, which will include transfer and expansion of the company's existing test course, has been approved by the Thailand Board of Investment. The new proving ground will be laid on a 540,000-square-meter land (more than 10 times as large as the existing one in Nong Khae plant); and will have a 3.3-kilometer high-speed circuit, a 48,000-square-meter ground for general test runs, as well as special proving courses for testing noise and driving comfort. (From an article in the Nikkan Jidosha Shimbun on Mar. 19, 2007)