ERJ staff report (TB)
Quincy, Illinois -- Titan International Inc. Chairman and CEO Maurice Taylor Jr. is optimistic about gains in the agriculture, construction and mining markets, despite the uncertainties in the general economy.
â€œI've talked with owners of some of the largest equipment dealers in North America. This year is their best year ever and they expect next year to be even larger,â€ Taylor said in a press release in response to economists' inquiries.
â€œThey believe this because of their farm customers who are having record profits, and they are cash rich and land rich. Farming is growing around the globe,â€ Taylor continued. â€œIf you follow the US government agricultural studies, you'll see they are wrong most of the time or miss what's happening. The corn harvest starts on Aug. 22 in Central Illinois and the yields are not going to be large, but there's still a good profit for the farmer. These farmers are still going to farm next year and buy new equipment.â€
He said while the construction equipment market has been growing slowly, the export market is strong. The mining business worldwide â€œis exploding,â€ the CEO added. â€œI don't see it slowing at all because of the new mines due to open. If you look at gold, silver, copper and oil sands, they (mining companies) can't dig fast enough. Look at all the M&A (mergers and acquisitions) in the mining business-it's great!â€
Taylor said during the next three months, Titan plans to sign up customers for a minimum of $150 million to $200 million in new construction and earthmover wheels and tyres, in addition to its current sales.
â€œThis added business will fill our North American tyre facilities, as well as increase our volumes in Brazil. Now, can all of this blow up as it did in 2008/2009? I guess it can. But I don't think so because there's too much cash on everyone's balance sheet except federal, state and local governments. â€¦I have never seen the future look as well as it does today in farming, construction or mining.â€
In concluding his market outlook, Taylor added: â€œTherefore, our new mottos areÂ¯'Plant farmer, plant' and 'Dig baby, dig. The future looks great. This is how I see it.â€
From Tire Business (A Crain publication)
Press release from Titan