MUSCATINE, Iowa (April 26) — Bandag Inc.´s operating income more than doubled in the first quarter on higher sales and lower operating expenses, a performance Chairman and CEO Martin Carver termed "especially gratifying."
Bandag´s earnings before taxes and interest shot up 155.2 percent to $23.3 million, an improvement Carver attributed to "recent strategic actions to strengthen and position our operations for profitable growth globally."
Sales increased 6.9 percent to $227 million on growth of the firm´s traditional business outside North America and higher sales by the firm´s expanding Vehicle Services business unit. As a result, Bandag´s operating earnings/sales ratio jumped six full percentage points to 10.3 percent.
Net earnings from continuing operations also more than doubled, to $14.9 million from $5.7 million. Bandag´s net result in the first quarter of 2006 was a loss of $10.6 million, based on one-time charges related to the sale of its South African business.
Bandag expects its pending $1.05 billion buyout by Bridgestone Americas Holding Inc. to close during the second quarter.