(Adds details)
TOKYO, Feb 21 (Reuters) - Japan's largest tyre maker, Bridgestone Corp, said on Friday its group net profit rose 161 percent in 2002 on brisk exports, confirming a comeback from a recall scandal that nearly destroyed its U.S. Firestone brand.
The company saw its results driven by strong exports to the United States and Asia, as well as the restructuring of its U.S. operations and an increased focus on Bridgestone brand tyres in North America as it worked to rebuild the Firestone brand.
The results offered further evidence that Bridgestone -- battered for two years by the fallout from deadly accidents involving its U.S. unit's tyres -- has largely put the Firestone mess behind it after settling more than 700 related cases.
The tyre giant posted a full-year consolidated net profit of 45.38 billion yen ($383.4 million), or 51.97 yen per share, compared with the prior year's profit of 17.39 billion yen. Revenues rose 5.3 percent year-on-year to 2.248 trillion yen.
Seven analysts polled by research firm Multex had on average forecast group net profit at 40.07 billion yen, largely mirroring a revised company estimate released in December.
On an operating basis, Bridgestone's profits rose 56 percent to 183.86 billion yen in 2002.
Since the 2002 results had been expected to mirror the firm's December revision, market attention before the announcement was largely focused on Bridgestone's forecast for 2003, when it is expected to face a tougher operating environment.
Bridgestone forecasts a 2003 group net profit of 70 billion yen on sales of 2.24 trillion yen.
The seven analysts polled by Multex had produced an average 2003 group net profit forecast of 74.5 billion yen, while sales were projected to inch up to 2.27 trillion yen.
BUMPY ROAD AHEAD
Bridgestone is expected to face an uphill battle in 2003 due to a strong yen, high rubber prices and sluggish economic conditions, but analysts also say restructuring and technical advances have put it on a solid long-term track.
The Japanese tyre maker is also expected to face weaker demand in the U.S. and take a hit on its pension expenses, while domestic prices are likely to stay on a deflationary path.
Still, a situation in which the tyre giant's biggest concerns were unfavourable exchange rates, rising rubber prices and the effect of a potential war in Iraq on the U.S. economy would likely have been welcomed little over a year ago.
Bridgestone and its U.S. unit spent 2001 battling a sea of lawsuits after U.S. federal regulators linked Firestone tyres mostly installed on Ford Motor Co Explorers to 271 deaths and more than 800 injuries from rollover accidents.
Millions of tyres were recalled, and Firestone's nearly century-long relationship with Ford came undone as the U.S. unit sank to a $1.68 billion loss.
Bridgestone also saw its shares plunge on worries over a massive liability settlement and the future viability of the Firestone brand. Few expected a quick bounceback in 2002.
But a new holding company structure and a $1.3 billion capital infusion for Firestone, as well as the closure of an Illinois plant, helped steady the ship.
Bridgestone is also believed to have enough resources to settle Firestone's remaining lawsuits.
Bridgestone's shares ended Friday trading before the announcement up 0.15 percent at 1,359 yen, down over seven percent since the end of December on worries over a strong yen and high rubber prices.
The capital-weighted TOPIX index has remained roughly flat during that period. ($1=118.36 yen)