MUSCATINE, Iowa (April 19)—Bandag Inc., led by its Tire Distribution Systems Inc. and Speedco units, reported an 11.9-percent jump in sales in the first quarter, but earnings from continuing operations fell 36.7 percent on tighter margins.
The net result was a loss of $12.6 million, based on the deferred loss on the sale of its South African business.
Disregarding that one-time loss, Bandag reported net income from continuing operations of $3.78 million on sales of $212.4 million for the quarter. Pre-tax operating earnings fell 39.1 percent to $6.11 million as costs grew faster than sales.
Most of the firm's sales improvement came from higher selling prices, as the volume of tread rubber and associated materials increased only 1 percent in North American and fell 17 percent internationally. Volume in Europe, by contrast, was up 9 percent.
TDS and Speedco reported 30- and 34.3-percent jumps, respectively, in sales, to $42.5 million and $23.6 million. TDS reported higher volume and higher selling prices. Speedco reported higher same-store sales and revenue from new stores opened since a year ago.