Muscatine, Iowa-Spurred by strong transportation business results, Bandag Inc. recorded improvement in both net income and sales in the second quarter and the first six months of 2005. Despite these good results, in Europe, the tyre retreading group's volumes and sales dropped.
The company reported net earnings of $12.7 million in the second quarter, up from $11.9 million in the like period last year, on sales of $227.3 million up 7 percent from the second quarter of 2004.
Net income rose to $18.7 million in the six-month period from $15.9 million in the like quarter last year. Sales came in at $417 million, a 7-percent jump from 2004.
"Reflecting the benefits of increased transportation activity, North American net sales and unit volume were up over the 2004 period," Martin Carver, chairman of the board and CEO, said in the announcement of second quarter results.
"These favourable transportation business conditions also were evident in the strong performance at Speedco and Tire Distribution Systems Inc.," he said.
North American business unit volume increased 5 percent and net sales rose 8 percent during the quarter. Price increases put in place in December 2004 and May 2005 had a positive effect on sales, Bandag said.
However, European business unit volume fell 10 percent while sales dropped 9 percent. International unit volume slipped 2 percent and sales tumbled 25 percent.