Titan reports record results for first half

ERJ staff report (DS)

Quincy, Illinois -- Titan recorded net sales for the first half of 2008 were $522.6 million, up by 20 percent on the $436.6 million recorded in the first half of 2007. Year-to-date gross profit was $74.3 million for 2008, as compared to $54.5 million for 2007.

“The first half of 2008 saw higher commodity prices drive a strong demand in the agricultural market,” said Chairman and CEO Maurice M. Taylor Jr. “This helped propel Titan to record sales levels for the quarter and year-to-date. Despite high raw material costs, the company was able to show improvement in gross profit by continuing to improve manufacturing efficiencies and better align Titan sales prices with production cost.

“Titan believes that volume will increase in farm tires as we move forward, and with excess production capacity of up to $400 million, we are very optimistic for the years ahead. Production of the 'big daddy' 63-inch tire has started with the first tire and wheel assemblies headed to the oil sands in Canada. This production is a gradual ramp-up until full production begins on January 2, 2009. It is still Titan's target to ship at least 900 of the 63-inch giant tires in the second half of 2008. Of these 900 giant tires, Titan plans to ship at least 200-300 as complete tire and wheel assemblies during the next two quarters. Titan will follow the 63-inch 'big daddy' tire production with the 57-inch 'sweet mama' tire in the fourth quarter of 2008,” said Taylor.

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Press release from Titan