MUSCATINE, Iowa (April 28, 2000)—Bandag Inc.´s results for the first quarter of 2000 were virtually unchanged from a year ago, as a slight increase in net sales was more than offset by an increase in income taxes, resulting in a slight decrease in net income.
For the three months ended March 31, Bandag posted net income of $10 million, down 0.2 percent from the 1999 quarter. Net sales crept up 0.1 percent to $224.3 million, as a 4-percent decrease in tread rubber sales was overcome by higher sales in the company´s Tire Distribution Systems Inc. (TDS) subsidiary.
The company said most of the decrease in tread rubber sales occurred in North America, where some dealers left Bandag for other retread suppliers—notably Michelin Retread Technologies Inc.
Within the TDS distribution subsidiary, the 6.1-percent increase in net sales, to $89.8 million, was due almost entirely to acquisitions, the company said. However, and 18.4-percent jump in operating expenses pushed the unit further into the red, as its operating loss increased to $2.89 million from $1.9 million a year ago.
Notwithstanding the lackluster first quarter, Bandag Chairman and CEO Martin G. Carver maintained the company is well-positioned for the future. "We are confident that our vision for serving fleet customers through a `Strategic Alliance´ with our Bandag dealers is well-suited to the opportunities emerging from our rapidly changing industry," Mr. Carver said in a statement.