Bandag reports 1Q loss

Retread tire supplier Bandag lost $12.6 million in the first quarter

Retread tire supplier Bandag lost $12.6 million in the first quarter. This came in spite of 12% higher sales of $212.4 million over the same period in 2005, largely due to charges taken to sell off business ventures in South Africa.

The company took $16.4 million in charges for discontinuing its South African operations, wiping out profits of $8.8 million for the first quarter.

“First quarter sales results showed progress, despite intensifying competitive climates and, as expected, margins continued to experience pressure from higher raw material costs,” said Martin Carver, Bandag chairman & CEO.

For the rest of the year, Bandag’s outlook remains upbeat despite growing bottom line pressures. “The underlying strength in trucking markets around the world [should] provide a platform for continued progress in 2006,” said Carver.

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