Skip to main content
EVENT TRACKER
Keep track of rescheduled, canceled industry events with our COVID-affected event tracker - Powered by Snap Finance
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • OPINION
    • CORONAVIRUS
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • Tire Cologne canceled; rescheduled until 2022
      New round of Paycheck Protection Program funding opens
      Vaccine may usher sense of normalcy
      Cover-up: More retailers requiring face masks to curb COVID
    • Icahn Auto trims fiscal 2020 operating loss despite 14% lower sales
      Oshkosh unit gets contract for new USPS local delivery vehicle
      Sumitomo adds treadwear-detection to 'Sensor Core' toolkit
      New Porsche 911 GT3 to feature Michelin fitment
    • ATD's Schuette: Other 'strategic opportunities' could emerge in wake of Goodyear-Cooper deal
      Analysts see good signs in Goodyear-Cooper deal
      Home Depot turning to Tweel to solve downtime issues in rental business
      Sentury's 10-year global expansion strategy will include plants in North America, Europe
    • Michelin upgrades 2 lines of Energy-branded truck tires
      TravelCenters plans 6 TA Express sites in California in 2021
      Carlisle TyrFil broadens recycling technology options
      U.K. retreader Vaculug to promote tread rubber supplier Vipal
    • USTMA joins coalition supporting passage of Equality Act
      McMahon's Best-One increases its minimum wage to $15
      Oshkosh unit gets contract for new USPS local delivery vehicle
      Conti recalling 94,000 Conti-, General-, Barum-brand LT/SUV tires
    • Sentury's 10-year global expansion strategy will include plants in North America, Europe
      Rebound in car tire demand drives USTMA market forecast for 2021
      Michelin driving for '100% sustainable' tires by 2050
      Bridgestone celebrating 90 years as a business in 2021
    • Bridgestone World Solar Challenge canceled due to pandemic restrictions
      Pirelli, Goodyear ink sedan racing series contracts in Canada, Europe
      Goodyear extends partnership with Nürburgring race circuit
      BFG to support ATV/UTV racers in WORCS series
    • Michelin upgrades 2 lines of Energy-branded truck tires
      Falken revamps winter tire lineup with studless Eurowinter products
      Michelin launching ‘eco-responsible' performance tire for sporty EVs
      Martins Industries launches products in 3 categories
    • Leeds West buys New Mexico Big O store property
      BTS to host three-day virtual sales conference for its dealers
      Our View: Goodyear, Cooper deal historic moment in tire history
      McMahon's Best-One increases its minimum wage to $15
    • Pennzoil offering carbon-neutral lubricants for passenger cars
      Washington dealership uses new-school solution for recruiting auto techs
      Marinucci: Customers may ignore dangerous conditions
      Automotive Lift Institute introduces Check360 inspection, label
    • SEMA scholarships and loan forgiveness now available
      WTC hosting webinar Jan. 20 on load-capacity standards
      Denver's Brian Sump named AAPEX Shop Owner of the Year
      DUB, TIS Wheels founder Myles Kovacs is SEMA Person of the Year
    • Trade groups oppose minimum wage increase proposal
      New stimulus package fixes PPP loan confusion
      Vaccine may usher sense of normalcy
      2020 Review: PPP loans give boost to small businesses
    • Sentury's 10-year global expansion strategy will include plants in North America, Europe
      Industry experts to discuss Goodyear-Cooper transaction in free livestream
      Rebound in car tire demand drives USTMA market forecast for 2021
      Michelin launching ‘eco-responsible' performance tire for sporty EVs
    • Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
      Sponsored By Yokohama Tire Company
      Stocking Tires for Crossover SUVs
      Sponsored By AppointmentPlus
      Three Important Lessons Learned for the Tire Business During a Pandemic
      Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
  • SHOP FLOOR
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Video: Balancing Tire
      An introduction to wheel balancing
      Wheel weights: Balancing form with function
      Choosing the right balancing equipment
    • Video: Demounting
      An introduction to demounting, mounting and inflation
      Staying safe when demounting and mounting tires
      Demounting Equipment
    • Video: Safety
      Introduction: Creating a culture of safety
      Protecting your people with proper hygiene
      Making friends with OSHA
    • Video: Tire Repair
      An introduction to tire repair
      How to properly patch a puncture
      Tire repair: Shining a light on visual inspections
    • Video: TMPS Service
      An introduction to TPMS service
      The importance of proper relearn procedures
      Decoding sensor data for TPMS diagnosis
    • Video: Training
      Intro: Finding and training technicians
      Shop Floor: Scholarships
      Advantages of apprentice program partnerships
    • Video:Vehicle Lifting
      An introduction to lifts and lift safety
      Recommendations for using a jack
      Jack stands for commercial tire service
    • Video: Wheel Torque
      Introduction to proper wheel installation
      Torque check and recheck recommendations
      Using torque sticks to speed service times
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
  • ADVERTISE
  • DIGITAL EDITION
  • Awards
    • Tire Dealer Humanitarian Award
MENU
Breadcrumb
  1. Home
October 11, 1999 02:00 AM

EARNINGS SLUMP HAS BANDAG RESTRUCTURING: CLOSING OF TREAD PLANT EXPECTED

Vera Fedchenko
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    MUSCATINE, Iowa—Bandag Inc. will likely close its Muscatine tread rubber plant as part of a company-wide reduction of 180 jobs. The Muscatine-based retread materials and equipment supplier will make a final decision on the Muscatine facility's future in the next two to four weeks, but that plant is likely to be shut down, a company spokesman said. The firm already has notified the United Steelworkers of America of its plans.

    The 100,000-sq.-ft. Muscatine unit employs about 100, including 75 production workers, the company said.

    In July, Bandag announced it would eliminate more than 100 manufacturing and administrative jobs—including 34 in Muscatine.

    Between the plant closure and the previously announced cutbacks, Bandag said it expects to reduce the work force by 180.

    Besides the Muscatine facility, Bandag operates five tread rubber plants in North America: Chino, Calif.; Abilene, Texas; Oxford, N.C.; Griffin, Ga.; and Shawinigan, Quebec.

    No single factor is influencing Bandag's probable decision to close the Muscatine plant, the spokesman said. The firm is considering several factors—production costs, transportation and logistics costs and plant capability.

    Bandag is hopeful that the number of permanent layoffs will be reduced through a voluntary early retirement option, CEO Martin Carver said.

    The Muscatine plant closure comes on the heels of a Sept. 30 announcement that Bandag expects its 1999 earnings to fall 20 to 25 percent below analysts' estimates of $2.72 per share—which would be approximately $59.5 million to $59.7 million, based on about 21.9 million shares outstanding as of June 30.

    Bandag also projected its third-quarter earnings to be even with 1998 and in line with consensus estimates of 78 cents per share, which would be approximately $17.1 million.

    The company attributed its falling earnings to higher than expected expense levels in its start-up subsidiary, Tire Management Solutions Inc., and a non-recurring fourth-quarter pre-tax charge of approximately $15 million for the restructuring of its North American operations, which the firm will implement during the fourth quarter of 1999.

    It expects to save approximately $14.5 million annually before taxes after the restructuring.

    Bandag's need to restructure in North America is a result of slowing demand for its products, Mr. Carver said. He placed a large share of the blame on Michelin North America Inc.'s ``excessively aggressive tactics'' in signing former large Bandag dealerships as a key cause of decreasing demand for the firm's products.

    On Sept. 16, Bandag filed a lawsuit against Michelin, accusing the tire maker of using illegal tactics to injure Bandag's business and eliminate it as a competitor.

    Bandag's restructuring is limited to its core business of manufacturing tread rubber and equipment for retreading, Mr. Carver said. The firm in 1998 completed restructuring of its European and Asian operations and most recently consolidated the central and eastern divisions of its TDS subsidiary.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • CORONAVIRUS
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • SHOP FLOOR
      • BALANCING
      • DEMOUNTING
      • SAFETY
      • TIRE REPAIR
      • TPMS
      • TRAINING
      • VEHICLE LIFTING
      • WHEEL TORQUE
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
    • ADVERTISE
    • DIGITAL EDITION
    • Awards
      • Tire Dealer Humanitarian Award