Bandag announces third-quarter results
Bandag Inc. posted decreases in net sales and net earnings for the third quarter. Compared to the same period last year, Bandag's overall earnings were down 18%, while its net sales were down 3%.
For the quarter, Bandag earned $14.6 million on sales of $261.7 million.
However, the company's third-quarter performance is better than its overall year-to-date performance. For the nine-month period ended Sept. 30 vs. last year, Bandag is down in net earnings and net savings by 42% and 3.7%, respectively.
"Given the severity of the economic slowdown in most major commercial truck tire markets, Bandag performed reasonably well and remained solidly profitable," said Martin Carver, chairman and CEO.
"Overall, we saw a slight reduction in gross margins to 36.9% from 37.5% in the prior year third quarter, a reflection of both the economic slowdown in Bandag's major markets and higher raw material costs. However, retreading equipment sales remained exceptionally strong, clear evidence of continued confidence at the dealer level."
Bandag's North American results were much more positive. For the first nine months of 2001, net sales in North America were relatively unchanged at $264.2 million. Net sales for the quarter were down 2%.
"While we found declining volumes in most markets because of the global economic slowdown, we were able to maintain margins except in Europe, where market pressures were more severe," said Carver.
"Given the uncertainties of the economic slowdown and the aftermath of the terrible events of Sept. 11, we don't anticipate any signficant recovery in the commercial truck tire business before the second half of 2002."