MUSCATINE, Iowa (March 5)—Bandag Inc. has cautioned shareholders that it expects first-quarter 2001 results will be lower than expected—down perhaps as much as 70 percent on per-share basis—reflecting a continued softening of key markets that began in the fourth quarter of last year. In North America, especially, falling demand for new medium and heavy-duty trucks coupled with rising imports has created a glut of tires in the aftermarket, Bandag said, adversely impacting demand for retreads. Bandag estimates this sales trend, combined with higher raw materials and energy costs, will result in first-quarter earnings in the range of 13 to 18 cents per diluted share, compared with 48 cents per share a year ago. Sales could drop as much as 6 percent.
Bandag predicts first-quarter earnings to be lower than expected
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