Bandag net profits plummet on higher sales for 2006

Muscatine, Iowa - Retread specialist Bandag Inc. reported net profits down by 60 percent for the twelve months to December 2006. Sales were up by six percent, to $973.6 million, compared with $914.6 million in 2005. Net earnings, however, came in at $19.95 million for 2006, compared with $49.48 million in 2005. Part of this reduction was due the previously announced deferred loss of $16.6 million on the sale of its business in South Africa

In December 2006, Bandag announced that Bridgestone Americas Holding, Inc. will acquire the outstanding shares of the company. This proposed merger remains subject to shareholder approval and other regulatory approvals, as well as the satisfaction of customary closing conditions. The transaction is expected to be completed in the second quarter of 2007.

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Press release from Bandag