Bandag Reports First-Quarter Financials

(Akron/Tire Review) Bandag Inc. released financial results for the first quarter of 2007.

Consolidated net sales were $227.0 million, compared to $212.4 million in first quarter of 2006, an increase of 7 per cent.

Consolidated net earnings were $14.9 million for the first quarter of 2007, compared to first quarter 2006 consolidated earnings of $5.7 million.

North American business unit volume increased 2 per cent, while net sales decreased 1 per cent. TDS net sales decreased $0.3 million, or 1 per cent. Consolidated operating and other expenses decreased $9.6 million, or 15 per cent, compared to the prior year period. Operating and other expenses decreased in all business units with the exception of vehicle services.

Bandag Chairman and Chief Executive Officer Martin G. Carver said: “Bandag’s first quarter performance is especially gratifying because it demonstrates the benefits of recent strategic actions to strengthen and position our operations for profitable growth globally. North American business unit volumes were up somewhat, even though we experienced some slowing in the important medium truck segment of our market.

“In Europe, Bandag unit volumes rebounded reflecting both our stronger, leaner organisation and strength in the EU economy. International unit volumes recovered well from a year earlier as Bandag benefited from replaced distribution in key markets,” said Carver.

“During the first quarter, Bandag management teams in all of our major business units globally delivered solid results, attesting to the benefits of recent strategic actions,” Carver added. “Moving forward, we’re very excited about the future. We’re confident that our pending merger with Bridgestone Americas Holding (BAH), which is expected to close during the second quarter, will bring Bandag dealers and our businesses significantly expanded opportunities to grow and thrive in the years ahead.”