Bandag announced consolidated net earnings of $14.6 million for the third quarter, an 18% decrease from third quarter 2000.

Consolidated net sales for the quarter were $261.7 million, down 3% from a year ago.
Year to date, consolidated net earnings were $26.5 million on net sales of $715.7 million, compared to $45.6 million on net sales of $743.3 million in the first nine months of 2000.
"Given the severity of the economic slowdown in most major commercial truck tire markets, Bandag performed reasonably well and remained solidly profitable,” said Martin Carver, chairman and CEO. “Overall, we saw a slight reduction in gross margins to 36.9% from 37.5% in the prior year third quarter, a reflection of both the economic slowdown in Bandag's major markets and higher raw material costs. However, retreading equipment sales remained exceptionally strong, clear evidence of continued confidence at the dealer level."
Carver said retread volumes declined in most markets due to the global economic slowdown, but Bandag was able to maintain margins in all areas but Europe, where market pressures were most severe. Sales in its Tire Distribution Systems subsidiary were higher than last year but competitive conditions limited profitability.
Looking forward, Carver said: "Given the uncertainties of the economic slowdown and the aftermath of the terrible events of Sept. 11, we don't anticipate any significant recovery in the commercial truck tire business before the second half of 2002.”