Bridgestone/Firestone expects $1.66 billion loss for the year
Dec 5, 2001 12:00 PM
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, 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.
