MEMPHIS, Tenn.—The acquisition of Tire Kingdom in Florida and increased market coverage for the Sigma brand helped raise TBC Corp.'s 2000 net sales 21 percent from 1999 to a record $902.7 million.
Net income for the year grew a more modest 4.4 percent to $18.7 million.
For the fourth quarter, TBC saw a 15-percent drop in earnings to $4.5 million despite record sales of $251 million—a 37-percent surge from the same period in 1999. The company attributed the lower income to charges for management restructuring.
"TBC achieved solid fundamental progress during 2000 in the face of persistently stiff competition," said Larry Day, president and CEO. "The accomplishments during the year track directly with the vision and strategic direction we have set for TBC's future growth."
Mr. Day said TBC's goal for 2001 is to increase its annual sales to more than $1 billion, a goal he believes it can achieve because demand in the replacement tire market isn't affected significantly by short-term swings in the economy.
Mr. Day said TBC expects to control more than 20 percent of the shipments of its brands to the retail level during 2001.
TBC also intends to increase its cash flow by more than 12 percent this year, a development Mr. Day considers "a valuable financial asset and strong support for our expansion plans. Our intent is to maintain a sound financial position that will enable us to pursue not only internal growth activities but also additional strategic acquisitions."