MUSCATINE, Iowa (Jan. 28)—Sales slipped slightly, primarily because of divestitures and closures, but net income rose for Bandag Inc. in the fourth quarter and year.
The company recorded net income of $29.1 million for the quarter, up from $17.5 million in the 2002 fourth period. Sales for the quarter fell 2 percent to $225.7 million.
Bandag had net income of $60.2 million for the year, up significantly from the $2.8 million in 2002. The 2002 figure reflects $47.3 million of income tax due to an accounting change. Sales for the year decreased 9 percent to $816.4 million.
The decline in revenues largely was attributable to lower sales of the company's distribution subsidiary, Tire Distribution Systems Inc., caused by planned divestitures and closures in 2002 and 2003, the firm said. Bandag did improve its margins in both its traditional business and TDS during the final three months of 2003, said Martin G. Carver, chairman of the board and CEO.