Bandag Announces First Quarter Results
(Akron/Tire Review) Bandag Inc. has reported consolidated net earnings of $6.0 million, or $0.30 per diluted share, for the first quarter of 2005. Consolidated net sales were $186.6 million, an increase of 8 per cent, compared to consolidated net sales of $173.5 million in first quarter 2004. For the first quarter of 2004, Bandag reported consolidated net earnings of $4.0 million, or $0.20 per diluted share.
“First quarter results reflected growing strength in the North American trucking industry,” said Martin G. Carver, chairman of the board and CEO of Bandag. “Globally, high raw material and transportation costs pressured margins in our traditional business. Bandag continued to invest in Speedco’s expanding operations, building new on-highway truck lubrication and tyre service locations as well as adding tire service lanes at existing locations. Tire Distribution Systems Inc. (TDS) operating results improved by $1.7 million, largely attributable to strengthening demand and margin improvement.”
Overall, North America business unit volume increased five percent, and net sales increased seven percent, compared to the first quarter of 2004, according to Bandag. Net sales were positively impacted by a December 2004 price increase, the company reported.
“We believe continued strength in the trucking industry in our major markets will work to Bandag’s benefit as we continue delivering an expanded array of valued-added vehicle services, which complement our traditional business,” said Carver. “At the same time, we recognize that continued increases in raw material and transportation costs will be a concern throughout 2005.”