Bandag reported second quarter net income of $11.7 million,
after one-time accounting changes, on sales of $231.1 million, compared to $9.5 million on $240.4 million for the same period a year ago. For the first six months, the company had a consolidated net loss of $34.4 million on sales of $423.6 million, compared to $11.8 million net income on $445.5 million for the first six months of 2001.
Gross profit for the second quarter increased by 5%, which the company attributed to lower raw material costs, particularly in North America, where operating profit improved 15%. However, it warned that market trends indicate an increase in raw materials cost throughout the end of this year.
Bandag’s U.S. tread rubber volume, which accounts for the majority of its North American revenues, is down less than 1% year-to-date, although U.S. industry shipments are down an estimated 4%. TDS’ second quarter sales were $98.8 million, down about 5% from a year ago.