MUSCATINE, Iowa (Oct. 19)—Bandag Inc.'s net earnings remained flat for the third quarter but rose for the first nine months of 2004 as sales in both periods were up from last year.
The maker of retread materials and equipment recorded net income of $20.1 million, about the same as the $20 million reported in the third quarter of 2003. Sales came in at $236.8 million, an increase of 12 percent from last year.
Of the sales increase, Bandag said $17 million came from Speedco Inc., an on-highway, quick-service lubrication business it acquired in the first quarter.
The company had net income of $36 million in the first nine months, up from $31.1 million in the like period last year. Sales rose 5 percent to $621.4 million in the period.
Improvement at Tire Distribution Systems Inc., a Bandag subsidiary, along with Speedco's strong performance played a big role in offsetting lower earnings in the firm's North American business unit, according to Chairman and CEO Martin G. Carver. TDS has net income of $3.6 million in the quarter, a sharp increase from the $1.9 million reported in 2003. That gives the subsidiary $700,000 in earnings for the first nine months, compared to a net loss of $4.6 million for the period last year.
"In Brazil, tread volume increased 30 percent and in Europe gross margin gains reflected the positive impact of operating improvements and recent price increases," he added.