ERJ staff report (TB)
Quincy, Illinois -- Titan International Inc. generated record quarterly income from operations in the quarter ended March 31 on record sales of $280.8 million.
Titan Chairman and CEO Maurice Taylor Jr. called the quarterly performance â€œoutstandingâ€ and said the firm expects the momentum to carry over throughout the rest of 2011 and into 2012.
Taylor cited strong growth in the farm tyre and wheel and earthmover and construction tyre businesses, along with higher selling prices, for the results. Titan has hired more than 200 employees of late and expects to hire more, he added.
Income from operations rose 165 percent to $26.9 million, yielding a profit margin of 9.6 percent. Sales were up 43 percent.
On a net basis, Titan reported a $3.04 million loss-the result of higher income taxes related to a noncash charge of $16.1 million taken as part of the firm's decision during the quarter to convert $59.6 million worth of 5.63-percent convertible notes into approximately 6.6 million shares of the company's common stock.
Taylor said Titan will release a revised financial outlook in May to reflect its purchase of Goodyear's farm tyre business in Central and South America. The Quincy-based tyre maker expects this business to generate about $400 million in annual revenue over the next 12 to 18 months, Taylor said
From Tire Business (A Crain publication)