Bridgestone/Firestone expects $1.66 billion loss for the year

Dec. 5, 2001
Nashville-based tiremaker Bridgestone Corp., which just reorganized its subsidiaries into Bridgestone/Firestone Americas Holding (BFAH), is projecting a $1.66 billion loss for 2001, mainly from one-time charges related to plant closings and the litigation expenses related to its national tire recall and replacement effort. In addition to the charges of $573 million recorded for the first half of 2001,
Nashville-based tiremaker Bridgestone Corp., whichjust reorganized its subsidiaries into Bridgestone/Firestone Americas Holding (BFAH), is projecting a $1.66 billion loss for 2001, mainly from one-time charges related to plant closings and the litigation expenses related to its national tire recall and replacement effort.

In addition to the charges of $573 million recorded for the first half of 2001, the second half charges include a $675 million write-down related to the general slowing of the economies in the Americas, especially the U.S, during 2001.

Other second half charges include a provision of $285 million for additional litigation related costs and expenses; $50 million related to the closure of the Decatur, Ill. plant; and $25 million related to the tire replacement program announced by the company in October.

Bridgestone said it would provide BFAH a capital infusion of $1.3 billion next month.

About the Author

Sean Kilcarr | Editor in Chief

Sean previously reported and commented on trends affecting the many different strata of the trucking industry. Also be sure to visit Sean's blog Trucks at Work where he offers analysis on a variety of different topics inside the trucking industry.

Sponsored Recommendations

Reducing CSA Violations & Increasing Safety With Advanced Trailer Telematics

Keep the roads safer with advanced trailer telematics. In this whitepaper, see how you can gain insights that lead to increased safety and reduced roadside incidents—keeping drivers...

80% Fewer Towable Accidents - 10 Key Strategies

After installing grille guards on all of their Class 8 trucks, a major Midwest fleet reported they had reduced their number of towable accidents by 80% post installation – including...

Proactive Fleet Safety: A Guide to Improved Efficiency and Profitability

Each year, carriers lose around 32.6 billion vehicle hours as a result of weather-related congestion. Discover how to shift from reactive to proactive, improve efficiency, and...

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!