Bandag Inc announced consolidated net income of $19.6 million for the quarter ended Sept 30, 2002. This was a $5.0 million, or 34%, increase over third-quarter 2001 reported net income of $14.6 million.
Effective Jan 1, 2002, Bandag adopted SFAS 142 and accordingly discontinued amortization of goodwill. Third-quarter 2001 net income included $2.0 million of goodwill amortization. Accordingly, third-quarter 2001 net income would have been $16.6 million before goodwill amortization. Therefore, Bandag's earnings increased $3.0 million comparatively. Consolidated net sales for third-quarter 2002 decreased 5% to $245.9 million from net sales of $257.6 million in third-quarter 2001.
For the first nine months of 2002, Bandag reported a consolidated net loss of $14.7 million. This loss includes the write-off of $47.3 million net of income tax from adoption of SFAS 142. Bandag reported consolidated net income of $32.5 million for the first nine months of 2002 before the accounting change. This was a $6.0 million increase from the prior-year reported net income of $26.5 million. Net income for the first nine months of 2001 would have been $32.4 million before goodwill amortization of $6.0 million. Therefore, Bandag's earnings increased $0.1 million comparatively. Consolidated net sales for the first nine months of 2002 decreased 5% to $669.5 million from $703.0 million in the prior-year period.