ERJ staff report (R&PN)
Quincy, Illinois -- Titan International Inc. Chairman and CEO Maurice Taylor is projecting Titan's sales next year will jump 21 to 36 percent on strong demand from the company's key markets, leading to a pre-tax operating income ratio of 13 to 15 percent of sales.
â€œThe agriculture market remains strong, earthmover is booming and we see great opportunities in the export market,â€ Mr. Taylor said. â€œAssuming little change in raw material costs, I forecast Titan sales to range $1.7 billion to $1.9 billion for 2012. This sales range is projected to generate an EBITDA from $225 million to $300 million.â€
Mr. Taylor said there are catalysts that could drive these ranges higher, such as production improvements at the firm's plants being completed on time or the effects of possible acquisitions.
Titan only recently walked away from a deal to buy Goodyear's European farm tyre assets, and Mr. Taylor said at the time Titan had put other potential acquisitions on hold while the Goodyear option was still active.
Mr. Taylor cautioned, though, that â€œdetails of any pending acquisitions would not be available for discussion until a public announcement is filed by the company.â€
Mr. Taylor said 2011 sales are expected be about $1.4 billion, or unchanged from the projections made in September.
â€œWe exit the year with much optimism for what lies ahead for ag, construction and earthmoving business,â€ he said.
Titan plans to discuss its 2012 plans in more detail on Dec. 13 in a conference call with analysts.
From Tire Business (A Crain publication)