Retread tire manufacturer Bandag Inc said its consolidated net earnings dropped to $9.5 million for the second quarter of 2001, a decline of 46% from second quarter 2000 net earnings of $17.6 million. Bandag said its consolidated net sales for second quarter 2001 decreased 2% to $244.8 million from net sales of $249.1 million in the same quarter of 2000.
For the first six months of 2001, Bandag said its consolidated net earnings totaled $11.8 million, a decrease of 57% from the $27.7 million earned over the same period last year. Consolidated net sales for the first six months of 2001 decreased 4% to $454.0 million from sales of $473.4 million in the prior year period, the company said.
Bandag chairman & CEO Martin G. Carver said that globally, Bandag’s tread volume in the second quarter declined 4.4% from last year’s second quarter, reflecting the difficult operating environment.
“As challenging as this was, we are encouraged by the fact that this decline in tread volume was significantly less than the 10% decline experienced in the first quarter of this year,” Carver said.
While Bandag’s overall tread volume was down, the company said volume showed improvement in North America. However, it was hurt by continued weakness in Europe and Latin America.
Continued efforts to build capabilities and strengthen alliances throughout the Bandag distribution network, plus the cost of defending Bandag’s North American dealer network in on-going litigation, were significant factors in driving overall operating expenses 14.8% higher over second quarter 2000, Carver said.