Bandag reports third quarter sales, earnings gains
Bandag Inc.´s consolidated net sales for the third quarter were $236.8 million, a 12% increase over the same period last year.
Bandag´s consolidated net earnings for the third quarter totaled $20.1 million vs. $20 million during the third period of 2003.
For the first nine months of 2004, Bandag achieved net earnings of $36 million and net sales of $621.4 million.
Bandag´s Tire Distribution Systems Inc. (TDS) subsidiary posted $3.6 million in operating income during the third quarter vs. $1.9 million during 3Q 2003.
"TDS achieved this increase on relatively flat sales," says Bandag Chairman and CEO Marty Carver.
However, Carver does not expect TDS´ profitability to remain at current levels due to the divestiture of 15 TDS locations in Texas that will take place during the fourth quarter.
He says Bandag´s Speedco truck lube subsidiary "continues to be an outstanding performer, delivering solid results to both the top and bottom lines."
Bandag plans to open new Speedco facilities and expand existing ones throughout the rest of the year and 2005.
Speedco´s 3Q sales were $17 million.
During the third quarter, Bandag also received $34 million from the sale of tire and wheel assets that were re-purchased in accordance with Yellow Roadway Corp.´s decision to not renew its outsourcing contract for Roadway Express tire and wheel services.
"Bandag has made significant progress in the first nine months," says Carver, "and we remain strategically focused on providing an expanding array of integrated services to keep trucks rolling. While we remain optimistic about the strength of the global economy, we are keeping a watchful eye on rising energy prices and their impact on Bandag´s business worldwide."