ERJ staff report (TB)
Quincy, Illinois --Titan International Inc. reported record sales and earnings for the quarter and year ended Dec. 31 and Chairman and CEO Maurice Taylor Jr. is projecting continued record-breaking growth in 2012.
Operating income for fiscal 2011 quadrupled to $132.2 million and Titan turned a fiscal 2010 net loss of $5.9 million into net income last year of $58.2 million. Sales jumped 69 percent to $1.49 billion, with acquisitions-most notably the Latin American farm tyre operations of Goodyear-accounting for nearly half of the gain.
By business sector, the agricultural business grew 42.2 percent to $960.7 million and the earthmover/construction business rose 60.6 percent to $306.8 million. Consumer business sales were up 14-fold to $219 million, reflecting the addition of contract business Titan is carrying out in Latin America for Goodyear.
Taylor is projecting double-digit growth this for Titan's farm tyre and wheel business and triple-digit growth for the mining and construction sectors, based on demand for both existing products and tyre and wheel designs already in the pipeline.
He expects Titan will invest about $55 million in 2012 on new equipment, moulds and dies to support the growth, up about 54 percent over 2011.
â€œWe are actively pursuing potential acquisitions and have a plan not only to grow our business but to improve our margins through greater manufacturing efficiencies as factories' utilisations grow,â€ Taylor said.
Operating income in the fourth quarter was $19.5 million, which reversed a loss of $9.1 million in the 2010 quarter. Net income of $14.5 million contrasted with a net loss of $16.6 million in 2010. Sales shot up 73.1 percent to $402.9 million.
â€œWe are driven to increase Titan's market share in every segment that Titan competes in 2012,â€ Taylor said. â€œIt is Titan's goal not only to manufacture the lowest-cost product, but also to have the best wheels and tyres in the world and the best service.â€
From Tire Business (A Crain publication)