TBC reports record third-quarter sales
TBC Corp. announced record net sales of $278.9 million for its recently ended third quarter. Compared to last year, sales were up 12%.
Its comparative nine-month sales performance was even better, up almost 17% to $761.6 million.
Net income increased from $5.3 million to $6 million for the quarter, and from $14.3 million to $15.4 million for the three quarters.
"We are particularly pleased with our retail operations, which are contributing an increasing proportion of our sales and income," said Larry Day, CEO and president of TBC. He sited expansion on two fronts:
* Tire Kingdom has added 30 retail service centers during the last 12 months through acquisitions and new openings.
* Big O's network of franchised retail stores now totals 491 locations, compared to 458 a year ago.
"The ongoing process of both Tire Kingdom and Big O not only is providing us with more control over the distribution of our proprietary brands of tires, but also is strengthening TBC's position at the retail level, where demand for automotive replacement products has historically not been significantly affected by changing economic conditions," said Day.
"Although it is still early in the fourth quarter, indications are that sales are continuing to recover from the sudden downturn experienced by our entire industry as a result of the events on Sept. 11. Pricing has remained firm, and this is helping us achieve meaningful improvement in margins."