Consolidated net earnings were $9.2 million, or $0.47 per diluted share, compared to third quarter 2005 consolidated net earnings of $18.7 million, or $0.95 per diluted share.

Consolidated net sales for the first nine months of 2006 were $719.8 million, an increase of 9% from consolidated net sales of $662.4 million in the first nine months of 2005.

For the first nine months of 2006, Bandag reported consolidated earnings from continuing operations of $25.4 million, or $1.30 per diluted share, compared to consolidated net earnings of $37.4 million, or $1.90 per diluted share, in the same period of 2005.

North American business unit volume decreased 6% compared to third quarter 2005, while net sales remained even. Net sales were positively impacted by approximately $1.1 million due to the effect of translating foreign-currency-denominated net sales into U.S. dollars and by a price increase in January 2006, Bandag said.

“Though North American volume in our traditional business was down due to the loss of distribution and ongoing competition from imported new tires, both TDS and Speedco delivered strong revenues and continue to benefit from the relatively strong commercial trucking activity,” said Martin G. Carver, Bandag’s chairman and CEO. “While it’s too soon to see any benefits from lower crude oil prices on either our raw material or operating costs, Bandag has better aligned its operating costs with market needs.”

“Overall, we’re optimistic as we move into fourth quarter 2006 and prepare for 2007. Today, Bandag is leaner and more able to manage market change quickly and responsively than at any time in recent history. While uncertainties will continue in global economic conditions, we’re confident that, as an organization, Bandag is in tune with dealers and fleet customers. That customer understanding guides us to take the right steps globally to strengthen the long-term prospects for Bandag and its dealers.”