Bandag (BDG), a manufacturer of retreading materials, said its third-quarter profits declined 51%.
The company said it earned $9.20 million, or 47 cents a share, in the quarter, compared with $18.72 million, or 95 cents a share, a year ago. During third quarter, Bandag incurred pre-tax expenses of $13.3 million, or 44 cents a share, associated with the previously announced closing of its manufacturing plant in Shawinigan, Quebec, the employment reduction programs in North America, as well as employee reduction programs worldwide.
Third-quarter revenue rose about 6% from a year ago to $260.2 million.
"Though North American volume in our traditional business was down due to the loss of distribution and ongoing competition from imported new tires, both TDS and Speedco delivered strong revenues and continue to benefit from the relatively strong commercial trucking activity," the Muscawtine, Iowa-based company said. "While it's too soon to see any benefits from lower crude oil prices on either our raw material or operating costs, Bandag has better aligned its operating costs with market needs."Shares rose 84 cents Wednesday to $43.90.