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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. However, he warned that the favourable costings so far this year are likely to change, with increases in raw material prices.

25th October 2002/by Tyrepress Editors

Second Quarter Figures From Bandag

Bandag has released its second quarter results. Net income was $11.7 million, a $2.2 m (23 per cent) increase over Q2 2001. The cost of litigation with Michelin (now settled) in Q2 was $5.7 million, bringing the cost for the first six months to $9.7 million. For the first half year, Bandag’s consolidated loss totalled $34.4 million. Looking ahead, CEO Martin Carver said that the company did not foresee an increase in demand for retread products but he welcomed the ending of “the distractions caused by the Michelin litigation”.

26th July 2002/by Tyrepress Editors

New European Sales Director For Bandag

Peter De Cabooter has been appointed as Bandag’s Sales Director, Europe, reporting to Mike Tirona, Vice President and General Manager. De Cabooter joined Bandag in 1991 as Sales Development Manager, Benelux. He was made Country Manager for the same territory six years later, then Marketing Product Manager. He was appointed Fleet Sales Manager in 1999 and General Sales Manager for Eurofleet in 2000, having been closely involved in the design and development of Bandag’s fleet program.

8th July 2002/by Tyrepress Editors

Bandag Buys Stock

Bandag has agreed to purchase over 1.5 million of its shares from Lucille A. Carver, widow of the company’s founder and mother of current President, Chairman and CEO Martin Carver. Mrs Carver was a director of the company from 1957 until May this year and the sale reduces the voting power of the Carver family from 78 per cent to around 64 per cent. The total purchase price is $40,183,636.

19th June 2002/by Tyrepress Editors

Settlement Reached In Bandag/Michelin Litigation

Michelin North America, Inc., Michelin Retread Technologies, Inc., and Bandag, Incorporated, announced that they have reached a settlement in their ongoing litigation. As a result of the agreement all parties have been dismissed from the litigation. Michelin and Bandag have agreed to dismiss all financial claims against all parties. This agreement brings to a close the trial in the United States District Court in Des Moines, Iowa, that began May 13, 2002.

22nd May 2002/by Tyrepress Editors

Drop In Sales For Bandag

Bandag Inc. has reported a drop in sales for the quarter ended March 31, 2002. Consolidated net sales for first quarter 2002 were $192.5 million, a decline of approximately six percent compared to net sales of $205.1 million in the same quarter of 2001.

26th April 2002/by Tyrepress Editors

Continental HSR1

Continental took the next step in developing their truck tyre strategy for the future when the company launched the HSR1 a regional traffic, steering axle truck tyre. The HSR1 development follows on from an ongoing market research campaign linked to technological development. This has identified the need for varying qualities in the tyres used for regional and long distance haulage – the HSR1 addresses those needs. The HSR1, as a steering axle tire, has been developed to offer two large gains in performance, the first in lower noise levels, the next in an increase treadwear performance, offering extended lifespan of the original tread by up to 40 per cent. Examples on show at the launch suggested that it could be possible to extend mileage by as much as 52 per cent over current expected performance of the HSR. The new generation of truck tyres also includes the HDR, a regional drive axle tyre, and the HTR trailer tyre. The HSR1 is part of a larger picture, in a move to offer a complete package to the haulier which not only offers better tyre performance, but greater economy though increased loads and potentially greater carrying capacity over an extended period. In an understanding of the importance of good quality casings to the retreader, especially given Continental’s co-operation with Bandag, Continental has incorporated its patented tread groove into the HSR1 which helps prevent stones from becoming lodged in the tread, thus preserving the casing for potential retreading. However, there is much more involved in the launch of the HSR1 than just another tyre. The HSR1 launch has been used to highlight Continental’s expectations for the future. We consider the impact of the latest technology on the future developments in Continental’s truck tyre division.

18th March 2002/by Tyrepress Editors

Michelin Is Leaving The Competition Behind.

In 2001, the Michelin corporation generated a world-wide turnover of 15.775 billion Euro (+2.5% compared to 2000) and an operating profit of 1.04 billion Euro (-10.5% compared to 2000), thus showing a net profit of 314 million Euro (-28.4% compared to 2000). Under difficult economic circumstances world-wide, Michelin’s two main competitors, Bridgestone and Goodyear, could not even get close to Michelin’s operating profit, which corresponds to 6.6% of turnover. Bridgestone is still suffering from the consequences of the Firestone tyre recall in the USA, in 2000, and Goodyear has shown a loss for 2001. During a press conference at the end of February in Paris, Michelin’s COO, Edouard Michelin, clarified the course of business events during the last year, and Michel Rollier, Chief Financial Officer, offered a detailed view on the corporation’s figures. For the very first time, the corporation answered questions during a big press conference (other conferences were held in London and New York), and mentioned turnover and profit figures for the individual divisions.

7th March 2002/by Tyrepress Editors

Full Year Results From Bandag

Bandag has announced consolidated net earnings of $17.4 million for the quarter ending 31st December 2001, bringing total net consolidated earnings for the year to $43.8 million, or $2.12 per diluted share on sales of $964.9 million. This compares to 200 net earnings of £60.3 million on sales of $996.1 million. Martin Carver, Bandag’s CEO stated that strong results in the last quarter were offset by performance in offshore operations. He noted that offshore operations continued to experience difficult economic conditions and strong competitive pressures.

29th January 2002/by Tyrepress Editors

Expansion For Bridgestone In South Africa

South African company Bridgestone Firestone Maxiprest is expanding and forming a new organisation. The company is to acquire West Cape Bandag and merging four outlets of tyre distributor Prima bande to form Primax Tyres. The outlets will distribute the Maxiprest range of retreads and related tyre services. Maxiprest has 100 retail outlets and 20 retread factories across South Africa.

28th December 2001/by Tyrepress Editors

Cooperation Bandag/Continental Brings Only Advantages

Ron Carver (Bandag) and Dr. Nikolin (Continental) said during a joint press conference held in Hanover, that the cooperation creates a win-win-situation. On the one hand there will be a quality product and on the other hand the franchise net is, according to Carver, strong enough across Europe to guarantee deliveries in the shortest possible time. In the Precure Retreading market more and more customers are insisting on having their own casings retreaded.

30th November 2001/by Tyrepress Editors

The Retreading Of Truck Tyres

Whereas the incidence of car tyre retreading is slowly diminishing (in summer tyres this segment is virtually insignificant, in winter tyres market shares are falling dramatically and are approaching the ten percent mark), truck tyre retreading seems to be stable across Europe. But there are significant national differences especially regarding the incidence of retreading and the relationship between new tyres and retreads. Looking back over the last decade, not from the technological viewpoint but at the main players and their market shares, it was (before Michelin’s Recamic came on the scene) the Marangoni group (including Ellerbrock), which showed most growth. Kraiburg also showed positive development but the world’s no 1 in cold retreading Bandag showed signs of stagnation. If these three players have improved, strengthened or defended their market shares then there must also be losers, these being the new tyre producers who supplied the retreaders with materials for their business but especially the hot retreading. The four big players in the European truck tyre market (Michelin, Goodyear, Bridgestone, Continental) have tied up packages which should be regarded by the retreading specialists (like Bandag, Marangoni/Ellerbrock, Kraiburg) with some discomfort because the result is a lessening of their influence. New tyre manufacturers, retreaders and dealers find themselves as part of a package. The importance of retreaded truck tyres grows, while the importance of retreaders shrinks. The retreaded truck tyre is an integrated part of a very complex marketing concept. The retread is another item in a customer relation program, a marketing instrument, which is designed to lead to the sale of the next new tyre.

30th November 2001/by Tyrepress Editors

Third Quarter Sales And Earnings Down For Bandag

Bandag Inc. has announced falls in sales and net earnings for the third quarter, compared to the same period last year. Turnover fell 3 per cent to $261.7 million and earnings were down 18 per cent at $14.6 million. Chairman and CEO Martin Carver blamed the economic downturn in truck tyre markets worldwide for declining volumes. Despite this, Bandag maintained its margins, with the exception of the ultra-competitive European market. Carver does not foresee recovery in the truck tyre business any earlier than the second half of next year.

30th November 2001/by Tyrepress Editors

Tyre Contract For G&S Tyres

Independent tyre dealer and Bandag retreader G&S Tyres has won the contract to supply all tyre-related services to the London division of the RMC (Ready Mixed Concrete) group. The deal involves the supply of new tyres, Bandag retreads and all associated services for the next two years for RMC Greater London’s fleet of 57 8×4 aggregate tippers.

30th November 2001/by Tyrepress Editors

Introduction Of Eurofleet Messenger

The first edition of a newsletter from Eurofleet has appeared. This is a joint venture between the large German tyre dealer group Team-Reifen-Union and Bandag. Eurofleet plans to create a complete network of 400 service providers in 2,000 different locations and will focus on large European fleets.

30th November 2001/by Tyrepress Editors