Bandag Inc. has reported first quarter losses.
The Muscatine, Iowa-based retread supplier's 2001 first quarter earnings totaled $2.3 million, a 77% decline from year 2000 first quarter earnings of $10 million.
Bandag's consolidated net sales for the first three months of the year were $209.2 million, $15.1 million or 6.7% less than the same period last year.
"As expected, the first three months of 2001 were challenging," says Bandag Chairman and CEO Marty Carver. "The decrease in traditional business tread volume reflects the sluggish business conditions and more intense competition throughout the truck tire industry worldwide. The slowing economies in our major markets reduced demand for trucking services and, in turn, fleets looked to their suppliers for price reductions in order to reduce costs."
Tough market conditions also caused Bandag's Tire Distribution Systems Inc. subsidiary to suffer a 7% revenue decline during the first quarter of 2001, according to Carver.
Bandag also has blamed decreases on rising raw material and fuel costs.
The company has nearly 1,300 franchised dealers worldwide. It enjoys 45% of the United States retreading market, according to Modern Tire Dealer research.
