MUSCATINE, Iowa (July 27, 2001)—Tire Distribution Systems Inc., Bandag Inc.'s commercial tire subsidiary, posted a loss in the second quarter on flat sales.
For the period ended June 30, TDS reported sales of $104.8 million and a loss before interest and taxes (EBIT) of $902,000. This compares with sales of $105 million and earnings $1.9 million (EBIT) in last year's second quarter.
“The soft economic conditions and competitive pricing pressure on new truck tire sales reduced operating margins,” Bandag Chairman and CEO Martin Carver said concerning the TDS results. “We also saw fewer unit sales of higher-margin retreads, which resulted in our operating margins being about 2 percent lower during the second quarter of 2001, compared to the same period in 2000.”
Through the first six months of 2001, TDS posted sales of $188.2 million and a loss before interest and taxes of $6.2 million. In last year's first half, TDS had sales of $194.8 million and an EBIT loss of $1 million.