Bandag Buoyed By Lower Costs

Bandag has released its third quarter figures, which show a net income of $19.6 million (3Q 2001: $14.7 m).

While sales decreased by 5 per cent in 3Q, costs of products sold fell by 8 per cent, thus improving margins. In Europe, sales were down 10 per cent by volume, but rose slightly in value, due to favourable currency exchange rates. For the first nine months, Bandag is showing a loss of $14.

7 m, but this includes a one-off write-off of $47.3 million for an accounting change. Without this, Bandag’s nine month earnings would have risen by $0.

1 m. CEO Martin G. Carver said that he hoped that 3Q represented stability in the commercial tyre industry and that recovery could begin next year.