MUSCATINE, IOWA — Bandag Inc. has reported consolidated net income of $29.1 million, or $1.50 per diluted share, for fourth quarter 2003, compared to consolidated net income of $17.5 million, or $0.91 per diluted share in the fourth quarter 2002. Net income for both the fourth quarter 2002 and 2003 included favorable tax adjustments of approximately $3 million, or $0.15 per diluted share, resulting primarily from the resolution of certain tax matters.
Consolidated net sales for the fourth quarter of 2003 were $225.7 million, a decline of two percent compared to consolidated net sales of $231 million in the prior year period. The decline in net sales was largely attributable to the lower sales of Bandag’s distribution subsidiary, Tire Distribution Systems (TDS), primarily due to the planned divestitures and closures in 2002 and 2003.
For the full year, Bandag reported consolidated net income of $60.2 million, or $3.11 per diluted share, compared to 2002 net income of $2.8 million, or $0.14 per diluted share, which included the write-off of goodwill, primarily of TDS, of $47.3 million net of income tax, or $2.38 per diluted share, related to the adoption of Statement of Financial Accounting Standards No. 142 as of Jan. 1, 2002. Consolidated net sales for 2003 decreased nine percent to $816.4 million from $900.5 million in 2002.
“Bandag improved its margins in both the traditional business and TDS during the final three months of 2003,” said Martin Carver, Bandag’s chairman and CEO. “Our investments in capabilities to provide customized solutions to our customers served us well during a year that proved to be challenging for the transportation industry.
“Financial results have improved at our European, international and most particularly our TDS operations for the fourth quarter of 2003. Even though economic recovery remains in the early stages, our progress during 2003 positions Bandag well to benefit from new revenue opportunities and continued economic improvement.”
For more information about Bandag, visit: www.bandag.com.
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