MUSCATINE, Iowa (Feb. 1, 2005) — A 9-percent decline in North American unit volume—partially from the loss of the Roadway Express business—impacted Bandag Inc.'s net sales in the fourth quarter, though sales also were positively influenced by quick-service lube business Speedco Inc.
Bandag reported net sales of $232.8 million in the quarter, up 3.1 percent from $225.7 million in 2003. Net sales for the year hit $854.2 million, up 4.6 percent from $816.4 million in 2003. Bandag also reported net income of $30.8 million in the fourth quarter, a 5.8-percent increase from $29.1 million. For the year, net income rose 11.1 percent to $66.9 million vs. $60.2 million the prior year.
Bandag said Speedco, which it acquired in the first quarter of 2004, contributed $16.9 million to fourth quarter sales and $55.1 million overall in 2004. Sales also were positively impacted by about $6.5 million from currency translation.
However, the company's tread shipments in the fourth quarter were down about 10 percent from factors including the loss of business from trucking fleet operator Roadway, European and Brazilian dealers buying ahead of third quarter price increases and fewer dealers in some markets. But Bandag said its full-year volume was down by less than 1 percent.
“Even though 2004 had its challenges, we made considerable strategic progress, including the acquisition of an 87.5-percent interest in Speedco, and in demonstrating the strength and attractiveness of Bandag's fleet offerings,” said Martin Carver, chairman and CEO. “While strong trucking activity in North America is cause for optimism as we enter 2005, we continue to take a conservative view of the global economy given continued uncertainties concerning the strength of the U.S. dollar and the volatility of raw material costs.”