MUSCATINE, Iowa (April 21, 2004) — Though its North American business unit volume was up 6 percent in the first quarter—with a net sales increase of $10 million—Bandag Inc. reported consolidated net sales for the quarter down 1 percent to $173.5 million vs. the same 2003 period.
In the first quarter, Muscatine-based Bandag also reported net income of $4.0 million, up from $2.4 million for the same period last year. The company reported net sales of $175.3 million in the first quarter of 2003.
Among various factors affecting its net sales, Bandag cited:
* A $22.7 million decline of net sales from divestitures and closures of Tire Distribution Systems Inc. outlets;
* Sales of $6.7 million from Speedco Inc., a quick-service truck lubrication business in which Bandag bought a majority stake in February;
* A 2-percent fall in European business unit volume;
* A 10-percent fall in international business unit volume; and
* Some favorable impact from currency rates which produced approximately $7.1 million on consolidated net sales.
Bandag said trucking activity is trending stronger than in 2003. The company also said it has received positive feedback from dealers for its acquisition of Speedco.
Martin Carver, chairman and CEO of Bandag, said the company's strategic alliance dealers also were positive about “the strategy that drove the acquisition—namely, building and expanding capabilities beyond our traditional tire products to enable Bandag and our strategic alliance dealers to address a broad range of trucking fleet needs.”
For the rest of the year, Bandag remains cautious. “Like many companies, we continue to temper our optimism for the remainder of the year, particularly given the volatile conditions in the Middle East and elsewhere and consumer confidence in the U.S.,” Mr. Carver said.