MEMPHIS, Tenn., (Oct 15, 2001) — TBC Corp. said preliminary results indicate that it should meet analysts' earnings estimates of 28 cents a share for the third quarter—a 12-percent increase over financial results in the year-ago period. The Memphis-based company said that it would release complete financial results for the quarter Oct. 24.
President and Chief Executive Officer Larry Day said TBC is pleased with the preliminary figures, which indicate its sales rose 4 percent to a new third-quarter record of $279 million.
"These results extend the positive momentum from the gain we achieved for the first half,” Mr. Day said. “The tragic events of Sept. 11 did cause a temporary pause in the solid progress we had established in the first two months of the third quarter, but we have experienced an improvement in demand subsequent to that immediate industrywide impact. The recovery has been more pronounced in our retail tire operations which we had expected because of the historical stability of consumer demand for replacement tires.
"Although we recognize that there is considerable uncertainty about the near-term outlook for the economy, TBC has the advantage of an increasing retail presence in the automotive replacement tire market that has consistently shown to be recession-resistant. The trends in our business thus far in the fourth quarter are reassuring. Our margins are benefiting from the price increases that have become effective over the past year, and we are encouraged that the pricing environment has thus far remained firm throughout our business units."