MEMPHIS, Tenn. (July 25, 2000) — TBC Corp.´s net earnings soared during the three months ended June 30 as sales hit a new quarterly high.
The Memphis-based company reported income of $5 million during the year´s second period — more than doubling the $2.3 million earned a year ago.
Sales rose 10 percent to $206.4 million during the quarter vs. $187.7 million in 1999.
Larry Day, TBC president and CEO, said the firm´s shipments of tires outpaced the industry during the quarter and increased 5.3 percent for the half.
"This gain represents a tangible, positive return on the actions we have taken to strengthen our marketing program with an emphasis on delivering consistently superior customer service," he said.
He attributed part of the increase to the June 5 acquisition of Tire Kingdom Inc., the 148-store retail tire chain located primarly in Florida, a deal he called "a highlight of the quarter."
Mr. Day also said the revamped Sigma private label line contributed to the company´s success by giving TBC "three strong brands to exploit in both our wholesaling and retailing operations."
For the first half, TBC´s net sales improved 9.7 percent to $383.8 million, while net earnings rose 46.4 percent to $9 million compared with 6.1 million a year ago.
The 1999 six-month earnings were impacted by a $2.8 million after-tax charge related to the write-off of a note receivable from a former distributor that had been in litigation since 1989, the company said.