Bandag Inc.'s first quarter consolidated net income was $2.4 million vs. $1.2 million for the same period last year.
However, Bandag's consolidated net sales for Q1 2003 were $175.3 million, a 9% drop from $192.5 million in Q1 2002.
The decline reflects a 21% sales decrease at Bandag subsidiary Tire Distribution Systems Inc. (TDS), plus a 4% drop in global tread rubber volume, according to Bandag officials.
Bandag's North American demand for tread rubber fell 8% during the first quarter, and the Muscatine, Iowa-based company attributes half of that decline to increased customer purchasing during the fourth quarter of 2002 to beat January price hikes.
TDS' first quarter sales fell 21% to $63.6 million, "primarily due to 2002 and 2003 divestitures and closures of 44 locations," say Bandag officials.
Bandag sold 17 TDS locations during the first quarter alone.
However, TDS' Q1 2003 operating loss was $4.1 million vs. $6 million for the same period in 2002.
"We're encouraged by the continued progress at TDS," says Bandag Chairman and CEO Marty Carver.
