ERJ staff report (RD)
Quincy, Illinois -- Titan International Inc. has reported sales of $196.4 million in the first quarter of 2010 (Q1), down from $232.6 million for the same period last year, a 26 April company statement said.
Gross profit fell to $26.1 million in Q1 from to $30.1 million in the first quarter of 2009, and net income was down to $2.1 million from $7 million in the same periods.
â€œThe first quarter started slow, but has improved each month. Leading the way has been the big farm segment, which should continue to be strong through the second quarter, slowing down as normal in the third quarter and picking up in the fourth quarter," said Titan chairman and ceo Maurice Taylor. â€œMid and small farm product demand is still slow, and we do not see any growth in that segment until 2012. Our construction business is up slightly, because it had nowhere to go but up, though it is still off nearly 50 percent from 2007 highs," he said.
Looking forward, Taylor said that Titan will be increasing its prices as materials costs move up. â€œThere is generally a 60- to 90-day notice between getting our notice of increases and notifying our customers,â€ he pointed out. Titan said it plans to open a new facility in Fort MacMurray, Canada, by the end of the third quarter of 2010 to service new mining customers and is planning a joint venture in Mexico â€œfor the distribution of all Titan products,â€ Taylor said, adding that Titan is also developing new wheel and tyre combinations for large farming applications.
Total debt was $366.3 million on 31 March 2010.
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Press release from Titan International Inc.