Bridgestone eyes 8 percent operating margin by 2015

ERJ staff report (DS)

TOKYO (Oct. 25, 2010) -- Bridgestone Corp. expects to achieve an 8-percent operating margin by 2015 on 20-percent greater sales of $37 billion, according to the firm's latest mid-term management plan.

The company's growth strategy focuses on five key areas:

• Expanding strategic tyre products and operations, including run-flat, high-performance and winter car tyres, truck tyre retreading and specialty tyres (OTR, aircraft and motorcycle tyres);
• Reinforcing fundamental competencies, such as leveraging vertical integration, enhancing fundamental research and bolstering supply-chain competitiveness;
• Securing positions in the emerging economies such as China, India and South America;
• Concentrating on key non-tyre product areas; and
• ENhancing the firm's environmental contributions.

In addition, Bridgestone has initiated global asset streamlining that includes reducing accounts receivable, inventories and capital investments and reorganising its steel cord business, reorganising its domestic tyre, chemical and industrial products businesses.

Bridgestone singled out four factors for increasing operating income from 2009 through 2012:

• Strategic product expansion -- $675 million;
• Rationalisation initiatives -- $420 million;
• Diversified product business -- $465 million; and
• Sales volume increases, etc. -- $580 million.

Bridgestone's projecting an operating margin of about 5 percent this year; it was 2.5 percent in fiscal 2009.

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Press release from Bridgestone

Bridgestone Says China Demand to Boost Tire Sales to $43 Billion in 2012 Bloomberg (Japan)

Bridgestone revises downward group sales target for 2012 Japan Today (Japan)