TOKYO (Oct. 24, 2008) — Bridgestone Corp. aims to improve its operating profits/sales ratio by two percentage points from 2007 to 9.5 percent by 2012, resulting from initiatives in its latest five-year strategic growth plan.
In formulating its “Mid-term Management Plan 2008”—covering 2009-2013—Bridgestone outlined actions it will take to enhance profitability. They include expanding its specialty tire lines, enhancing eco-friendly products, developing its retreading business globally, optimizing its diversified products businesses and enhancing competitiveness throughout its supply chain.
Bridgestone expects its return on assets to hit 6 percent and sales to grow about 5 percent per year to $43 billion by 2012. Operating income is expected to rise nearly 13 percent per year to $4.1 billion by 2012.
In making the revisions, Bridgestone said it updated and added initiatives in response to recent changes in the business environment, including changes in demand trends and the cost environment.
Specifically, the company intends to:
* Expand strategic tire products such as run-flat tires, ultra-high-performance tires, winter tires for passenger cars, low-profile and wide-base single radial tires for trucks and buses, and radial tires for large off-the-road vehicles, aircraft and motorcycles;
* Enhance eco-friendly products such as its Ecopia brand fuel-efficient tires and materials for solar modules;
* Expand the retread business globally using the resources of the Bandag business acquired in 2007;
* Reinforce fundamental competencies such as manufacturing technologies and procurement systems;
* Review the diversified products business domains with an eye toward “selection and concentration.” This could mean certain businesses would be divested;
* Enhance the firm's “corporate social responsibility” systems outlined in previous five-year plans;
* Strengthen environmental activities; and
* Enhance competitiveness throughout full utilization of a global logistics strategy, targeting the entire lifecycle, from product release to completion of sale.