Bandag restates 1st qtr. results
MUSCATINE, Iowa-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 a loss of $12.6 million reported previously. Earnings from continuing operations grew to $5.71 million from $3.78 million.
Bandag said it is 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.
Mighty tapped as a top franchise
ATLANTA-Mighty Auto Parts was named one of the 25 top franchises by Startup Journal-a publication from the Wall Street Journal-from among some 1,500 franchise brands in the U.S., the automotive distributor said.
The Journal examined franchises that are well established, have experienced leadership, exhibit overall financial health and have a proven record of success, the paper said. It began with 1,458 franchise systems that had detailed financial information available.
Mighty Distributing System oversees 125 wholesale distributors in 43 states and five countries. The company's sales and service system provides inventory management, local service and original equipment-quality undercar and underhood parts and products.
House passes estate tax cuts
WASHINGTON-The House of Representatives has passed a compromise bill to reduce the estate tax that supporters hope will persuade the Senate to reconsider the issue.
The compromise legislation raises the estate tax exemption level to $5 million for individuals and $10 million for couples. Currently, the tax exemption is slowly increasing annually to total repeal in 2010, but in 2011 the tax would revert to the old $1 million exemption.
The House passed a bill to repeal the tax in 2005, but in June the Senate failed by three votes to invoke cloture and limit debate on its repeal legislation.
Michelin passes on Formula 1 bid
PARIS-Group Michelin declined to make a bid to be the single tire supplier for Formula 1 Grand Prix racing for the 2008-2010 seasons.
June 23 was the deadline for companies to submit bids for the tire contract for the 2008-10 seasons. F1 racing's organizer, Federation International de l'Automobile (FIA), cited several safety and competition issues as its reasons for changing to a single tire supplier.
Bridgestone Corp.-which along with Michelin supplies F1 now-and Pirelli & C. S.p.A. have said they are considering making bids.
Michelin-a tire supplier for the past six seasons-will not compete next year, having stated its displeasure with the FIA's decision.
Committee OKs tire fuel bill
WASHINGTON-The House Energy and Commerce Committee has passed by voice vote five bills designed to encourage energy conservation, including one to establish a national tire fuel efficiency consumer information program.
The bill would establish a tire fuel efficiency rating system combined with a national consumer education program on tire maintenance administered by the National Highway Traffic Safety Administration.
Rep. Anna Eshoo, D-Calif., sponsored an amendment to the bill, also passed by voice vote, which prevented the national program from pre-empting the California replacement tire fuel efficiency law passed in 2003.
The Rubber Manufacturers Association, which supports the House fuel efficiency bill, agreed to support the Eshoo amendment to expedite the legislative process, an RMA spokesman said.