MUSCATINE, Iowa (April 18, 2005) — With help from an improving North American trucking industry, Bandag Inc. reported a 7.5-percent increase in net sales and a 48.3-percent growth in net earnings for the first quarter.
Bandag reported net sales of $186.6 million, up from $173.5 million last year. Net earnings jumped to $5.96 million from $4.02 million.
Bandag said net sales were affected positively by a sales increase of $10.8 million by its Speedco truck lube subsidiary, in which it purchased controlling interest last year. Also helping were a 5-percent increase in North America business unit volume coupled with a 7.2-percent increase in Speedco's net sales and an increase of 6 percent in international business unit volume with a net sales boost of 29 percent.
Currency translation also positively impacted sales by about $4.2 million.
Factors negatively impacting overall sales included an $8.3 million decline in sales from divested locations of Bandag's Tire Distribution Systems (TDS) Inc. subsidiary and a 17-percent decrease in European business unit volume as well as a 9-percent fall in sales in the TDS unit.
“On the positive side, we believe continued strength in the trucking industry in our major markets will work to Bandag's benefit as we continue delivering an expanded array of value-added vehicle services, which complement our traditional business,” said Martin Carver, chairman and CEO of Bandag.
“At the same time, we recognize that continued increases in raw material and transportation costs will be a concern throughout 2005.”