Bandag subsidiary posts mixed results
Tire Distribution Systems Inc. (TDS), a wholly owned subsidiary of Bandag Inc., posted third-quarter net sales of $114.9 million, up 2.1% vs. third-quarter 2000 results.
For the nine-month period ended Sept. 30, TDS recorded net sales of $302 million, down 1.2% compared to the same period last year.
However, the subsidiary's operating profit has suffered greatly in 2001. For the third quarter, TDS posted a 70% decrease in operating profit to $785,000; for the year, TDS is down more than 400%, with an operating loss of $5 million.
"TDS' sales increased in comparison to the prior year period," said Martin Carver, Bandag's chairman and CEO. "However, competitive conditions continued to adversely affect margins, which limited profitability."