Quincy, Illinois - Titan International Inc. posted record sales for the fourth quarter and the year after expanding its farm and earthmover tyre offerings in 2007, but it reported a net loss for both periods partially because of off-the-road tyre production realignment costs.
The Quincy-based tyre and wheel maker reported a 23.2-percent surge in net sales to $837 million (Euro 550.5 million) in 2007 vs. $679.5 million in 2006. Titan posted a $7.25 million net loss for the year, down from a profit of $5.14 million in 2006.
A $13.4 million non-cash convertible debt conversion charge as well as higher selling and marketing expenses and costs associated with realignment of its OTR production contributed to the net loss, the company said.
Agricultural tyres represented the largest share of Titan's sales at 62 percent, followed by OTR tyres at 33 percent and consumer tyres at 5 percent.
For the fourth quarter, net sales rose 23.8 percent to $204.9 million from $165.6 million the previous quarter. Titan's quarterly net loss of $8.85 million was a slight improvement from the $9.54 million loss in the fourth quarter of 2006.
â€œTitan's year in 2007 can be described best as one of constant evolution,â€ said chairman and CEO Maurice Taylor Jr. â€œWe saw the agricultural market begin its upswing and had a strong year in the off-the-road market. We've laid much groundwork for the future as well,â€ he added.
From Tire Business (A Crain publication)