[Company analysis] Bridgestone Corporation (ブリヂストン)

「Bridgestone Corporation (ブリヂストン)」is a tire manufacturing company headquartered in Tokyo and was founded in 1931 by Ishibashi Shojiro(石橋正二郎). Currently, this company become the world's largest tire manufacturing company, and the sales scale greatly overwhelming other Japanese tire manufacturing companies such as「Yokohama Rubber(横浜ゴム)」and「Sumitomo Rubber Industries(住友ゴム)」. As of July 2018, they have 181 production facilities in 24 countries and a total of 143,509 employees.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Bridgestone Corp.
Company name (Japanese)	ブリヂストン
Date of establishment	Sunday, March 1, 1931
Headquarters location	東京都中央区京橋三丁目1番1号
Capital	126,354
Consolidated sales	3,650,111
Consolidated operating profit	402,732
Consolidated total assets	3,863,699
Consolidated capital	2,436,162
Capital adequacy ratio	63.1%
Consolidated number of employees	143,509

 

 

 

2. Summary and Features

 
「Bridgestone」is a company that started as a tire manufacturing division of「Japanese Tabi socks(日本足袋株式会社)」in 1930. In 1931, it was spun off as「Bridgestone Tire Corporation」. The name "Bridgestone" was a direct translation in English of the founder Ishibashi Shojiro's last name, Ishibashi(石橋).

 

There were various events such as the bombing of the head office during World War II, but since then, it has grown rapidly with the development of the Japanese automobile industry, becoming a global company in the manufacture of automobile-related parts including tires. 「Bridgestone」currently surpassed「Michelin」and got the top share in the world tire market.

In the total sales, Japan domestic only accounts for 30% and the 60% comes from the Americas. Right now, there are only two companies in the world that are likely to be Bridgestone's competitors, the world-famous「Michelin」and the United States「Goodyear Tire」.  

However, they are also diversifying their business. About 20% of Bridgestone sales come from non-tire businesses such as golf and tennis brand sports and bicycles. In fact, until the 1950s, through a subsidiary of Bridgestone, they also handled a bicycle-related business, also produced motorcycles, but now it is withdrawn.

 

 

 

3. Major Business

 

■ Tire section
this company produce tire tubes for passenger cars, trucks and buses, construction, industry, agricultural vehicles, aircraft, subways, and motorcycles.

■ Diversification department
 -Chemical products
Automobile-related parts, precision parts for office equipment, industrial materials and construction-related products.

 -BSAM diversification
BRIDGESTONE AMERICAS, INC. General roofing materials

 -Sporting goods
Golf / tennis related

 -Bicycle
Bicycles, bicycle parts

 -Other
Finance / other

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		3,337,017	3,643,427	3,650,111
Consolidated operating profit		449,548	419,047	402,732
Consolidated total assets		3,716,030	3,959,038	3,863,699
Consolidated net assets		2,345,899	2,402,738	2,436,162
Breakdown of sales	Tire business	2,759,274	3,021,000	3,041,099
	Diversified business	577,742	622,427	609,011