Bandag Reports 12 per cent Sales Rise

Banday has announced an increase in third quarter revenues of 12 per cent. The company says that higher international sales, favourable exchange rates and revenue generated from the acquisition of Speedco were behind the increase.

For the three-month period ended 30 September, the company reported earnings of $20.1 million ($1.02 a share) compared with $20 million ($1.03 a share) the same time last year. Sales were up 12 per cent to $236.8 million compared with $211.4 million last year. $17 million of sales increases came from the company’s first quarter acquisition of Speedco.

During the quarter, operating income at the company’s tire distribution unit almost doubled to $3.6 million from $1.9 million last year on relatively flat sales. The company said it does not expect the unit’s profitability to remain at current levels due to the divestiture of 15 locations in Texas, scheduled to take place in the fourth quarter.

North American volume fell 1 per cent, while European volume rose 1 per cent while net sales increased 22 per cent to $3.9 million, and the company’s international unit’s volume rose 24 per cent, and sales increased 24 per cent to $5.6 million.

Favorable exchange rates added about $3.3 million to sales figures, the company said. Looking forward, the company said in a statement: “We are keeping a watchful eye on rising energy prices and their impact on Bandag’s business worldwide.”

Bandag shares rose 55 cents, or 1.27 per cent, to close at $44 on the New York Stock Exchange.