MUSCATINE, Iowa (Feb. 2) — Bandag Inc. suffered double-digit declines in net earnings for the fourth quarter and the fiscal year on the negative effects of "unprecedented" increases in raw material and energy costs.
Looking ahead to 2006, Bandag Chairman and CEO Martin E. Carver cautioned that the firm will have to "manage conservatively" in order to minimize the impact of the volatility of these costs. At the same time, he said feedback from the market indicates the trucking economy remains "vibrant," giving Bandag confidence in is operating units´ ability to take advantage of market opportunities.
For the year, Bandag reported a 5.8-percent increase in sales to $914.6 million, based almost entirely on price increases throughout the year. Tread rubber volume was unchanged for the year.