Bandag Inc. announced its first quarter results will be lower than expected because of increasing raw material and energy costs and a soft sales trend begun last quarter.
The company estimates first-quarter 2001 earnings will be in the range of $.13 to $.18 per diluted share, compared to $.48 per diluted share in the first quarter 2000. Bandag also anticipates first quarter sales will be down approximately 6%.
Bandag says the demand for retreads in North America has been adversely affected by "the glut of new tires caused by an influx of imported tires and a decline in new medium-duty and heavy-duty truck demand." The company also says it is experiencing "a softening of demand on a global basis."
Bandag predicts these market conditions will continue for much of the year.
