Bandag announces second quarter results
Bandag Inc.'s second quarter net earnings totaled $9.5 million, a 46% decline from last year's second quarter net earnings of $17.6 million.
The company's second quarter net sales for 2001 dropped 2% to $244.8 million. First quarter sales were $209.2 million.
Rising raw material costs and lower tread volume contributed to reduced margins, according to Bandag Chairman and CEO Marty Carver.
However, Bandag equipment sales "remained strong due to demand for new technology introduced in 2000," he says.
The Muscatine, Iowa-based firm's Tire Distribution Systems Inc. subsidiary also reported "flat" second quarter revenues.
"The soft economic conditions and competitive pricing pressure on new truck tire sales reduced operating margins. We also saw fewer unit sales of higher-margin retreads."
Carver is optimistic about the rest of the year. "While we expect current economic conditions to remain challenging...we believe Bandag is strategically positioned to capture additional fleet business when the economy recovers and business trends improve," he says.