Bridgestone says achieved 2022 targets ahead of plan

Tokyo – Bridgestone Corp. has become closer to building a “strong Bridgestone capable of responding to changes in the business environment,” according to a recent report by the Japanese group.

In a detailed integrated report on the progress of its ‘third foundation’ transformation journey, which was launched two years ago to improve the group’s profitability, Bridgestone said it achieved its 2022 targets a year ahead of plan.

In 2021, the group said its revenue reached Yen3,246 billion (€23 million) with a gross profit margin of 40.6%, achieving the 2022 goal ahead of schedule.

On the profit front, both adjusted operating profit ratio and ROE (return on equity) achieved the 2022 goal ahead of schedule. ROIC, which indicates earning power, was 9.0%, which Bridgestone said was “well above” the plan for 2021. The figure is projected to exceed the 2021 level this year.

On the revenue front, Bridgestone said its 2021 tire sales increased significantly centred around the premium segment, resulting in “a substantial increase” in revenue over 2020.

Bridgestone said that it addressed “past negative legacies” as part of its transformation programme, in a bid to rebuild earning power.

“We have restructured our manufacturing footprint and business portfolio over the mid-long term across all of our business, including tires, diversified products and material manufacturing,” said the group.

Furthermore, Bridgestone said it has been working on expense and cost structure reformation such as fixed cost reduction.

The group also reinforced its financial strategy by establishing an extended Global CFO role, emphasizing ROIC “as the most important management index”.

Regarding “immediate issues,” Bridgestone said it is conducting “thorough flexible and agile management” especially of its supply chain in response to changes in the business environment and tire demand.

In addition, the tire maker said it expanded sales of “high-value-added” products such as high rim diameter tires for passenger cars, tires with lightweighting Enliten technology and Bridgestone Mastercore tires for mining vehicles.

“As a result of these initiatives, we achieved 2022 targets ahead of schedule in our 2021 financial results, and are steadily building the foundations for a “strong” Bridgestone,” it said.

In 2022, Bridgestone said it will continue sales with an “aggressive approach,” aiming to reach revenue of Yen3,650 billion, while sales target for 2023 is slightly lower at Yen3,300 billion.

“The group is rebuilding earning power and investing in strategic growth.

“Specifically, it is reforming its cost and expense structure, reinforcing its premium business strategy, and expanding its solutions business under the banner of evolution into a “strong” Bridgestone."

Bridgestone said, its efforts will be guided by its recently unveiled E8 commitment which encapsulates the group’s values in energy, ecology, efficiency, extension, economy, emotion, ease and empowerment.

The commitment, said the group, will see the group striving towards creating a sustainable society, realising carbon neutral mobility, advancing tire technologies and inspiring excitement.