MUSCATINE, Iowa (April 21)—Bandag Inc. posted net income of $2.4 million in its first quarter, compared with a $46 million net loss in the same period last year, although sales fell 9-percent. The sales decline to $175.3 million reflects a 4-percent falloff in tread rubber sales and 21-percent decrease in sales by the firm's Tire Distributions Systems Inc. subsidiary, which has sold or closed 44 locations since year-end 2001. Despite the lower sales and divestitures, TDS cut its operating loss. Martin G. Carver, Bandag chairman and CEO, said Bandag´s earnings performance fared reasonably well in spite of dealer inventory stocking in the closing months of 2002, which adversely impacted first quarter 2003 results, and economic softness in North America during the first three months of the year. In North America, Bandag's traditional tread rubber business suffered an 8-percent decline in demand.
Bandag profits rise on 9-percent falloff in sales
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