MUSCATINE, Iowa (March 6, 2001) — Bandag Inc. has cautioned shareholders that it expects first-quarter 2001 results will be lower than expected — down perhaps as much as 70 percent on per-share basis — reflecting a continued softening of key markets that began in the fourth quarter of last year.
In North America, especially, falling demand for new medium- and heavy-duty trucks coupled with rising imports has created a glut of tires in the aftermarket, Bandag said, adversely impacting demand for retreads.
Bandag estimates that this sales trend, combined with higher raw materials and energy costs, will result in first-quarter earnings in the range of 13 to 18 cents per diluted share, compared with 48 cents per share a year ago.
Sales could drop as much as 6 percent, as Bandag said it is seeing a softening of demand on a global basis, as well. The company expects these conditions to continue for much of 2001.