Bandag earnings improve slightly
MUSCATINE, Iowa-Despite a 12-percent increase in net sales-aided in large part by a strong performance at recently acquired Speedco Inc.-Bandag Inc. reported only a slight increase in net earnings for the third quarter.
The Muscatine-based firm said net earnings rose less than 1 percent to $20.1 million in the period as sales grew to $236.8 million.
Speedco, which Bandag purchased in the first quarter, is responsible for $17 million of the sales increase, the company said. Speedco is an on-highway, quick service truck lubrication subsidiary.
For the first nine months of the year, Bandag said net earnings increased 15.9 percent to $36 million. Net sales rose 5 percent to $621.4 million.
The company said North American business unit volume fell 1 percent, a portion of which it attributed to the loss of trucking company Roadway's business. Yellow Roadway Corp. decided this year not to renew its contract with Bandag. But Bandag also received $34 million in cash proceeds from the sale of tire and wheel assets that were repurchased by Yellow Roadway.
Bandag's Tire Distribution Systems Inc. subsidiary reported $3.6 million in operating income in the quarter vs. $1.9 million last year. Sales for the unit rose slightly to $60.7 million.
Motorola debuts tire pressure sensor
DETROIT-Motorola Inc. unveiled its line of automotive sensors, including a tire pressure sensor, at the Convergence 2004 show in Detroit.
Motorola said its tire sensor is designed to surpass the government standard for safety for driver warning systems when tire inflation becomes significantly low. The U.S. mandate requires 100 percent of new production light vehicles to include tire pressure sensors by 2008.
Motorola's launch is aimed at 2008 model year vehicles.
BFS names vice chairman, president
NASHVILLE, Tenn.-The vice chairman and president of Bridgestone Americas Holding Inc. and Bridgestone/Firestone North American Tire has returned to Japan because of ill health.
Yuji Tomiyasu will accept an assignment at Bridgestone Corp. in Japan following his recovery, the tire maker said. As of Jan. 1, Mr. Tomiyasu's roles in North America will be filled by Asahiko ``Duke'' Nishiyama, currently director, Americas and Europe operations for Bridgestone Corp.
Mr. Tomiyasu joined Bridgestone in 1974 and came to North America earlier this year. Mr. Nishiyama joined Bridgestone in 1977 and assumed his current post in January.
Dattilo re-elected RMA chairman
WASHINGTON, D.C.-Cooper Tire & Rubber Co. chief executive Thomas Dattilo was elected chairman of the Rubber Manufacturers Association for fiscal 2005, his third term as president.
Mr. Dattilo, who is chairman, president and CEO of Cooper, will be succeeded in fiscal 2006 by Mark Emkes, chairman and CEO of Bridgestone Americas Holding Inc. and Bridgestone/Firestone North American Tire.
Yokohama expands Petro Lube contract
FULLERTON, Calif.-Yokohama Tire Corp. has expanded a commercial tire distribution deal with Petro Stopping Centers L.P. of El Paso, Texas, to include Petro's 22 Petro Lube franchises in the U.S.
Yokohama has had distribution with Petro's corporate locations since late 2001. Petro operates 36 corporate sites and 22 franchise locations, a Petro spokesman said.
``Adding the entire network of Petro's top-notch retailers to our previously existing national tire dealer base has greatly improved our distribution and availability,'' said William Forsch, manager of travel plaza sales for Yokohama's commercial unit.
``This allows fleet managers to feel confident that their drivers can more successfully locate a servicing Yokohama provider for tire repair and/or replacement no matter where they are or what time of day or night that it is.''
Sumitomo raises prices on exports
TOKYO-Sumitomo Rubber Industries Ltd. will increase the prices of Dunlop-, Falken- and Sumitomo-brand tires it exports by 3 to 4 percent by year-end.
The price increase, announced by Sumitomo's SRI Tire Trading Ltd. subsidiary, affects passenger, light truck and medium truck and bus tires exported to North, Central and South America, Europe, the Middle East and Asia.
The price adjustment varies by country and product. Sumitomo cited escalating prices of natural rubber and oil-related materials, ``which are beyond (the) company's efforts to absorb them without increasing tire prices.''
Sumitomo last raised export tire prices in January, by 3 to 5 percent.