Bandag reports Q1 income gains
Bandag Inc.'s net income for the first quarter of 2004 totaled $4 million, a $1.6 million increase over the first quarter of 2003.
Bandag's consolidated net sales for the first quarter were $173.5 million vs. $175.3 million in Q1 2003.
Net sales for Bandag's Tire Distribution Systems Inc. (TDS) subsidiary declined by $22.7 million during Q1 2004 due to divestitures and closures of TDS locations over the past two years.
"Both United States tread sales and TDS results indicate continued, gradual improvement in the North American market," says Bandag Chairman and CEO Marty Carver. "Trucking activity is trending stronger than in 2003."
Bandag's North American business unit volume grew 6% during the first quarter.
The Muscatine, Iowa-based company also reports that sales for its Speedco Inc. commercial service chain property totaled $6.7 million for the period between Bandag's acquisition of 87.5% ownership on Feb. 13, 2004, through March 31.
Carver says Bandag retreaders have responded "very positively" to the Speedco acquisition.
Bandag enjoys 43.5% of the United States truck tire retread market, according to Modern Tire Dealer data.