MEMPHIS, Tenn. (April 28, 2000)—Buoyed by an 8.9-percent increase in tire unit shipments, TBC Corp. posted record earnings for the first quarter of 2000, ended March 31.
Net earnings for the three months rose 3.7 percent, compared with the 1999 quarter, to $3.95 million, on a 9.4-percent jump in net sales to $177.4 million.
The gain in unit shipments of tires was well above the average for the industry as a whole, said Larry Day, TBC president and CEO. Mr. Day attributed the increase to new product introductions and other marketing initiatives, including new premium touring tires with 100,000-mile warranties and a completely new line-up for the company´s Sigma brand.
TBC should benefit from some industrywide price increases, scheduled to take effect at mid-year, Mr. Day said, and also is benefiting from its investment in Carroll´s Inc., a large wholesale distributor, d.b.a. Carroll Tire Co., which TBC acquired in 1998. Since then, Carroll´s has added four new distribution centers and increased both its penetration of existing markets as well as its geographical coverage of the Southeast, he said.
TBC intends to continue expanding its Big O Tires Inc. retail operation, as well, Mr. Day said. Big O added 18 locations net last year for a total of 454 stores, he said, and should have a net gain of 20 to 25 locations this year, either from new construction or the conversion of existing outlets.