Bandag Swings to Loss
Bandag (BDG), a manufacturer of retreading materials, swung to a loss in the first quarter, hurt by loss from discontinued operations.
The company said it lost $12.6 million, or 64 cents a share, in the quarter, compared with a profit of $6 million, or 30 cents a share, a year ago. Income from continuing operations was 19 cents a share. Analysts surveyed by Thomson First Call were expecting earnings of 20 cents a share.
First-quarter revenue rose 11.9% from a year ago to $212.4 million.
The company's sales at North American business rose 10%, led by price hikes. Revenue at European business was up 1%, including the negative impact of foreign currency translation. International business revenue fell 8%, due to the divestiture of South African business. Operating margin for the quarter fell 268 basis points to 1.8%."As expected, margins continued to experience pressure from higher raw material costs. Modest increases in tread volume in the North American and European business units were offset by declines in the International business unit," the company said.
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