Consolidated earnings from continuing operations were $3.8 million for the first quarter compared to 2005 first-quarter consolidated net earnings of $6.0 million.
“First-quarter sales results showed progress, despite intensifying competitive climates,” said Martin G. Carver, Bandag’s chairman of the board and CEO. “As expected, margins continued to experience pressure from higher raw material costs. Modest increases in tread volume in the North American and European business units were offset by declines in the International business unit. Sales of Tire Distribution Systems Inc. (TDS), Bandag’s tire distribution subsidiary, grew approximately 30%, which reflects increased unit sales as well as price increases.”
North American business unit volume increased 1%, while net sales increased 10% as compared to first quarter 2005. Net sales were positively impacted by price increases in May 2005 and January 2006.
Bandag also reported that John C. McErlane, vice president and president of TDS, was elected to the position of vice president, North America, and Mark A. Winkler was elected to the new position of vice president, vehicle services.