MUSCATINE, Iowa (Jan. 28, 2002) — Tire Distribution Systems Inc., a subsidiary of Bandag Inc., reported an operating loss of $11.1 million in 2001, compared with a $2.47 million loss in 2000.
TDS' net sales for the year dipped to $398.9 million, from $399.1 million in 2000. During the fourth quarter, TDS posted an operating loss of $5.71 million, compared with a loss of $4.08 million from the same period last year. Fourth-quarter sales rose 3.7 percent to $96.8 million.
Bandag Chairman Martin Carver said operating and other expenses rose 12 percent, offsetting increases in sales and gross margin. “TDS moves into 2002 with its sights clearly set on internal process improvements and operating expense reductions,” he said. “Overall, we believe TDS is well-positioned to benefit from improvements in the transportation sector.”