Bridgestone slashes its profit estimates

DECEMBER 14, 2000

Bridgestone slashes its profit estimates

BRIDGESTONE has been forced to cut its profit estimate by 80% this year because of the effects of the problems with the Firestone brand in the United States of America. Bridgestone says it is going to take a loss of $485m to cover the cost of the recall of 6.5m tires and the damages claims which are expected. There are claims that as many as 160 people died as a result of Firestone tire failures. This means that the expected profit of $600m has been cut to just $116m. Bridgestone's shares are down nearly 60% from their value in February.

The Japanese firm says that it does not expect the Firestone problems to have any effect on the Formula 1 program where the company will come under attack this year from Michelin.

Other stories for DECEMBER 14, 2000

BERGER AND SCHUMACHER EXPRESS FEARS OVER NEW MICHELIN TIRES

BUTTON SETS FASTEST TIME FOR NEW BENETTON TEAM AT BARCELONA TEST

BADOER CONTINUES FERRARI TESTING AT FIORANO

SCHUMACHER FORCED OUT OF BMW-WILLIAMS TEST

FISICHELLA TO UNDERGO KNEE OPERATION

EM.TV INVESTIGATION UNDERWAY

TROUBLE FOR WILLIE BROWN

FISICHELLA'S SURGERY

BRIDGESTONE SLASHES ITS PROFIT ESTIMATES

HOW TO MAKE MILLIONS...

COULTHARD QUICKEST AT VALENCIA