Bandag Sales Up for 2005, But Earnings Drop - Tire Review Magazine

Bandag Sales Up for 2005, But Earnings Drop

(Akron/Tire Review) Buoyed by a strong fourth quarter, Bandag Inc. posted higher sales but reduced earnings for 2005.

Sales for the year hit $914.6 million, up from 2004’s sales of $864.3 million, while consolidated net earnings for 2005 were $49.5 million, a drop of nearly $20 million from 2004’s $66.9 million.

Net sales for fourth quarter 2005 of $252.3 million, up 7% from $235.2 million posted in the same period of 2004. Still, net earnings for the quarter were off some $18 million, with profits reaching $12.1 million for the period vs. $30.8 million in 2004’s last quarter.

“Multiple price increases in the North American, European and International business units could not keep pace with unprecedented volatility in raw materials costs, which exerted pressure on margins,” said Martin Carver, Bandag’s chairman and CEO.

Since the beginning of 2004, Bandag said, its North American operations took raw material cost increases of some 33% and 27%, respectively, increases that the company as able to partially offset through price increases. Bandag, though, expects further raw material cost pressure in 2006.

"Unprecedented increases in energy prices and rapid globalization of the tire industry are clear evidence that the business norms we have managed to are quickly changing,” Carver said. “TDS and Speedco act as bellwethers for Bandag, providing useful insight to the direction and trends in the trucking and off-the-road markets for commercial tires. Both indicate that the trucking economy remains vibrant, giving us confidence in the continued strength of Bandag, Speedco and TDS to take advantage of opportunities in the marketplace.”

You May Also Like

Why you should recommend a ‘tune-up’ to your customers

Because of automated systems, many people overlook the basic maintenance that’s still required to keep vehicles running smoothly.

Your customers probably rarely ask for a tune-up. What used to be a common request from customers has turned into a relic of a bygone era.

Tasks like adjusting carburetors, fuel systems, and ignition systems are now largely automated by computer systems, and they do a pretty darn good job at it. Because of these automated systems, many people overlook the basic maintenance that’s still required to keep vehicles running smoothly. Maybe tune-ups aren’t dead after all…

How to select compatible TPMS sensors and tools

Programmable sensors are a fantastic option for simplifying TPMS service and programming tools don’t have to be complicated.

Hydraulic suspension bushing replacement tips

Hydraulic suspension bushings were developed in response to customer demands for smoother, quieter and better-handling vehicles.

TechForce Foundation launches Techs Talk survey

The survey is designed to uncover insights into the perspectives of aspiring technician students and new working technicians.

Hunter Engineering releases new alignment coverage for hundreds of vehicles

The release covers new records as well as updates to existing records, covering OEM changes to existing vehicles.


Other Posts

GRI appoints new director of North America

Ydo Doornbos has spent 29 years in the tire industry, and will now lead GRI’s efforts to expand the company in the North American market.

Consumer understanding is key to success in the all-weather tire segment

Tire dealers need to properly understand consumer needs based on driving habits and performance preferences.

Nexen Tire America details its 2024 U.S. motorsports program

Nexen Tire Motorsports drivers competed at the “Streets of Long Beach” Pro Championship event using the company’s N’Fera Sport R tire.

Chapel Hill Tire opens 12th location in Durham, NC

Chapel Hill Tire said the new Durham location will offer everything from routine maintenance to complex repairs.