Bandag Announces Cost Cutting Programme - Tire Review Magazine

Bandag Announces Cost Cutting Programme

(Clacton, U.K./Tyres & Accessories) Bandag Inc. announced that it has closed its pension plans to new hires in the U.S. and Canada, and will freeze the existing pension plans for U.S. employees and for salaried Canadian employees effective 31 December 2006.

The cost-cutting programme includes an early retirement programme and voluntary and involuntary redundancies for some U.S. employees.

Bandag also said it is considering terminating the pension plans within the next 18 months, although no definitive action has been taken. Bandag anticipates that freezing its pension plans will allow it to better control retirement benefit expenses going forward, while at the same time preserving employees’ retirement benefits earned to date.

The announcement is in addition to the closure of the company’s Shawinigan, Quebec. tread manufacturing facility.

Explaining the need for the changes, Bandag’s chairman and CEO Martin G Carver said: “The North American markets for commercial replacement tyres have changed irreversibly over the past several years, a situation exacerbated by record-high raw material prices and intensified competition. To stimulate growth in Bandag’s traditional retread business, we are taking steps to simplify our operations and lower our operating costs.”

Bandag estimates it will record a net curtailment pre-tax gain of $1.9 million, or $0.06 per diluted share, in the quarter ending 30 June 2006. For the year ended 31 December 31, 2005, Bandag recognized consolidated pre-tax pension expense of $5.3 million and is estimating 2006 pension expense to be $4.9 million.

You May Also Like

Cosmo Tires launches redesigned tire labels

Cosmo Tires is also introducing a series of collectible stickers that will accompany the new tire labels.


Cosmo Tires recently launched its redesigned tire labels. This new initiative not only elevates the brand’s aesthetic appeal but also emphasizes its commitment to consumer engagement, according to Cosmo Tires. On July 1, all Cosmo Tires began to feature the new label design.

Cosmo Tires is also introducing a series of collectible stickers that will accompany the new tire labels. These stickers will be rotated every few months, and Cosmo said this also adds a layer of personal connection with the brand.

Do severe duty brake pads trade power for longevity?

Akebono says a new friction formula increase life and lower noise, while maintaining stopping power.

The good news about the industry’s technician shortage

For the first time in 10 years, collective completions of postsecondary automotive, collision, diesel and aviation programs have increased.

TBC launches new Power King Navitrac commercial truck tires

Designed for a wide range of applications, the company said all Navitrac tires are backed by a five-year, two-retread warranty.

VIP Tires & Service, Joe’s Tire Shop launch customer appreciation promotions

Promotions will be running through Aug. 21.

Other Posts
ASE to provide a testing and certification program for xEV high-voltage safety

Once the test is passed, the test-taker receives an electronic credential and a certificate.

BKT becomes member of the Global Platform for Sustainable Natural Rubber’

GPSNR brings together natural rubber producers, traders, tire manufacturers and other industry partners to promote sustainable solutions.

OTR-tire-feature-– BKT-Earthmax-Sand-Pic-1400
Goodyear launches Cooper Discoverer Stronghold AT tire

Available in 28 sizes with a 16- to 20-in. rim diameter, the tire is compatible with a wide range of pick-up trucks and off-road vehicles.

PRT launches 28 new complete struts in North America

These products expand coverage to nearly 6 million vehicles.