Tyre specialist Bandag Incorporated has reported consolidated net earnings of $30.8 million, or $1.56 per share, for the fourth quarter of 2004, compared to $29.1 million, or $1.50 per share in 2003.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more


Net earnings for the fourth quarter of 2004 included a gain of approximately $6.0 million ($3.7 million after tax), due to the sale of assets and were also favourably impacted by $6.4 million for the resolution and reassessment of “certain tax matters”.


Consolidated net sales for the fourth quarter were $232.8 million, an increase of 3%. Speedco, Bandag’s on-highway quick-service truck lubrication subsidiary, which was acquired in the first quarter of 2004, contributed $16.9 million to fourth quarter 2004 net sales.  Net sales were also positively impacted by currency factors.


For full year 2004, Bandag reported net earnings of $66.9 million, or $3.39 per share, compared to 2003’s $60.2 million, or $3.11 per share.
Consolidated net sales for 2004 increased 5% to $854.2 million from $816.4 million in 2003 – Speedco contributed $55.1 million.


Chairman and CEO Martin Carver said: “Bandag’s fourth quarter tread shipments were down approximately 10%, reflecting a combination of factors including the loss of the Roadway business, dealers in Europe and Brazil buying ahead of price increases announced in the third quarter and the reduction in the number of dealers in some markets.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“In addition, dealers in North America increased purchases in the fourth quarter of 2003 to take advantage of a year-end incentive programme that was significantly modified in 2004. Purchases of new trucking equipment increased significantly in 2004. According to some analysts, large fleets have elected to replace rather than expand their capacity which may have adversely impacted the sale of retreads. Typically, an increase in new equipment purchases precedes increased demand for new and retread replacement tyres by several months.”


Noting several challenging market factors such as higher raw material costs and Bandag distribution reductions in Europe and elsewhere, Carver added: “While fourth quarter tread volume was off approximately 10%, full-year volume was off by less than 1%.”


He noted that Bandag made “significant strategic progress” during the quarter, citing the company’s December announcement of its new tyre management outsourcing agreement with U.S. Xpress Leasing, the November opening of Speedco’s first new full-service location and continued tyre lane expansion of existing sites, and continued performance improvement at Tire Distribution Systems, Inc. (TDS), Bandag’s tyre distribution subsidiary.