TBC Corp. Releases Third Quarter Earnings Report

AKRON, OH — TBC Corp. has reported sales and earnings for the third quarter and nine months, which ended on Sept. 30.

Net sales in the third quarter increased 31.5 percent, to $476.5 million, compared to $362.4 million in the prior-year period, according to TBC Corp. The company enjoyed a 9.9 percent total unit tire sales increase. Net income increased 9 percent to $10.9 million, or 47 cents per diluted share, during the current quarter versus $10 million, or 44 cents per diluted share, in the third quarter of 2003.

However, same store sales for TBC’s retail segment decreased 1.7 percent in the third quarter, primarily due to the effects of Hurricanes Charley, Frances, Ivan and Jeanne, according to the company.

Though inclement weather in Florida and the Eastern U.S. affected the company’s retail business, NTB performed in line with expectations, the company said.

For the nine months ending on Sept. 30, net sales rose 44.2 percent, to $1,366.8 million, compared to $947.8 million in the prior-year period. Total unit tire sales increased 19.1 percent during this time, while same store sales for TBC’s retail segment increased 1.7 percent. Net income grew 13 percent to $25.6 million, ($1.10 per diluted share), versus $22.6 million ($1 per diluted share) a year ago.

For 2004, the company expects earnings to be in the range of $1.60 to $1.64 per diluted share. Earnings for the fourth quarter are expected to be in the range of 50 cents to 54 cents per diluted share.

As of Sept. 30, TBC Corp. owned a total of 1,171 stores in its retail network, including 602 company-operated locations and 569 franchised Big O stores. The company’s store base of 253 locations rose 28 percent since Sept. 30, 2003. TBC Corp. also stated that it expects to add an additional 11 retail locations in the fourth quarter of 2004.

For more information about TBC, go to: www.tbccorp.com.

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Despite a tough commercial tire market in 2023 due to overstock and the effects of a rubber-banding supply chain, some tire manufacturers are expressing a cautious optimism for stabilization and gradual recovery through the rest of 2024 and into 2025.

"The economy is not showing signs that it’s going to slow down, but I don’t think the situation’s going to improve dramatically by the end of this year. It’s more likely next year," said Pierluigi Cumo, Vice President of B2B products, at Michelin North America. "We can see the light because the beginning of 2023 was very bad. I think now we’ve found the bottom, and I don’t think we’re going to get much further from the bottom in 2024."