Titan kickstarts integration of acquisitions; predicts 2007 sales to top $800 m

Quincy, Illinois - Titan International Inc. expected its acquisitions to yield $340 million (€266.1 million) in yearly sales as the company announced an integration programme for the new subsidiaries.

In the next 18 months, Titan will reorganise its new Bryan and Freeport plants to ''obtain maximum synergies'' as the firm planned to top $800 million in sales next year.

"For 2006, I have set management objectives for my staff at $720-735 million in sales and an EBITDA (earnings before interest, taxes, depreciation and amortisation) range of $75-80 million," Titan chairman and chief executive Maurice Taylor said.

"Looking ahead to 2007, I have increased management objectives to $800-825 million and an EBITDA range of $105-115 million."

Titan bought the farm tyre manufacturing facility in Freeport, Illinois, from Goodyear and the off-the-road (OTR) tyre plant in Bryan, Ohio, from Continental AG's US arm.

The Illinois-based company, which considers agriculture its biggest market, plans to sell the General brand large mining tyres from the Bryan plant together with its Titan brand wheels.

"Though we've seen a dip in the ag market, I think large farm tractor demand will start to pick up in 2007, once everyone sees that corn harvest will not keep up with the demand of new ethanol factories," Taylor said.

"Once original equipment manufacturers understand that they lose market share with no-name brand tyres on their equipment, Titan will continue to pick up business."

Titan said it would be placing orders for approximately $8 million in new equipment for 2007 delivery and anticipated moving $10 to $12 million of its idled assets to its tyre factories.