ERJ staff report (TB)
Quincy, Illinois -- A stronger-than-expected fourth quarter helped propel Titan International to 21.2-percent higher fiscal 2010 sales of $881.6 million (Euro 639.8 million), but the farm and OTR tire and wheel maker barely eked out a profit because of reserves set aside for various reasons.
Fiscal 2010 pre-tax operating income improved to $649,000 (Euro 471 000) from a $32 million loss a year ago; net income was $358,000 (Euro 259 840) against a loss of $24.7 million (Euro 18 million).
Titan ceo Maurice Taylor explained the slim profits by pointing to a number of reserve items totaling several million dollars and the firm's $11.4 million repurchase of shares during the fourth quarter.
Looking at 2011, Mr. Taylor said Titan is running its plants flat out to meet rising demand.
â€œFarm demand is going strong and we believe it will go for a few more years,â€ he said during a conference call with analysts. â€œThe mining business is coming up fast and we believe it has room to run. In the last two months orders have started to come in so fast that we are behind.â€
Titan is hiring back more than 100 workers at its plants in Des Moines, Iowa, Freeport, Illinois, and Bryan, Ohio, Mr. Taylor said, and might need another 100 to meet demand.
â€œI believe with the correct management of these facilities, Titan will be on the road to proper profit,â€ he said.
Fourth quarter sales of $232.7 million (Euro 168.9 million) were up 58.8 percent over the 2009 period. Although the firm's operating result made a swing to a profit of $704,000 (Euro 511 209) from a loss of $30.1 million (Euro 21.9 million), the net result was still in the red based largely on a loss of $14.6 million (Euro 10.6 million) associated with the repurchase of 8-percent outstanding senior unsecured notes due Jan 2012.
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Press release from Titan
Article from Tire Business - A Crain Publication