MUSCATINE, Iowa (June 23, 2006) — Bandag Inc. will restate its first quarter financial results—resulting in an improvement in its net loss for the period—because of an accounting error.
Muscatine-based Bandag said it understated its inventories and overstated its cost of products sold in its North American business unit. The restatement will not affect cash flows, the firm said.
With the restatement, Bandag's first quarter net loss improves to $10.6 million from $12.6 million reported previously. Earnings from continuing operations also improved to $5.71 million from $3.78 million.
Bandag said it filing amended forms with the Securities and Exchange Commission to reflect the restatement.
“The restatement is due to an inadvertent accounting error, not misconduct on the part of the company,” Bandag said in a statement.