Bandag Releases 4th Quarter Results

Bandag Incorporated has reported consolidated net sales for the fourth quarter 2006 of US$253.7 million compared to consolidated net sales of US$252.3 million in the fourth quarter 2005, an increase of 1 percent. Consolidated net sales were positively impacted by approximately US$2.6 million due to the effect of converting foreign currency net sales into U.S. dollars.

Consolidated earnings from continuing operations were US$11.2 million, or $0.57 per diluted share, for the fourth quarter 2006, compared to fourth quarter 2005 consolidated net earnings of US$12.1 million, or $0.62 per diluted share. During the fourth quarter 2006, Bandag incurred pre-tax restructuring expenses of US $6.3 million, or $0.20 per diluted share, primarily associated with cutbacks in the workforce at the company’s European business unit.

For the full year 2006, Bandag reported consolidated net sales of US$973.6 million, an increase of 6 percent from consolidated net sales in 2005 of US$914.6 million. Consolidated earnings from continuing operations for 2006 were US$36.6 million, or $1.87 per diluted share, compared to consolidated net earnings of US$49.5 million, or $2.52 per diluted share, in 2005. This lower figure was in part the result of the announced deferred loss on the sale of the company’s South African business.

On December 5 last year Bandag announced that it had entered into a merger agreement with Bridgestone Americas Holding, Inc. This proposed merger remains subject to shareholder approval and other regulatory approvals, as well as the satisfaction of customary closing conditions. The transaction is expected to be completed in the second quarter of 2007.