Bridgestone disclosed in early January it had agreed to sell its Firestone Building Products unit, which produces commercial roofing and building envelope solutions at 15 facilities throughout the U.S., to LafargeHolcim Ltd., a Swiss building products company.
The unit generated sales of $1.8 billion in 2020. Bridgestone said the $3.4 billion deal will allow it to "focus its resources" on its core tire and emerging mobility solutions businesses.
Operating income for fiscal 2020 fell 35% to $2.09 billion on 14.6% lower sales of $28.1 billion, Bridgestone said, noting the operating profit was 48% higher than that forecast in mid-November. The operating ratio declined nearly 2.5 points to 7.4%.
The net result fell into the red to the tune of $218 million, a contrast to net income of over $2.2 billion in 2019.
The tire business reported a 37.6% drop in operating profit to $2.06 billion on 16.3% lower sales of $22.7 billion, cutting the operating ratio three points to 9%. Within the business unit, sales in the passenger/light truck, truck/bus and specialty tire segments fell 14.8%, 18.2% and 19.3%, respectively.
Business in the Americas declined 15.3% to $13.2 billion, which contributed to a 24.1% drop in operating income to $1.31 billion, yielding an operating ratio of 9.9%.
Tire production in tonnage terms sank 21.7% in the Americas during 2020, but is expected to recover most of the lost output in 2021.