ERJ staff report (BC)
New York – Titan International has lowered its 2013 earnings guidance as a result of high tire inventories in the machinery and mining industries, reports Forbes. The company expects to see earnings decline by over 12 percent in 2013.
Titan supplies wheels, tires and assemblies for off-highway equipment used in agriculture and earthmoving/construction.
In a press release on 7 June, CEO Maurice Taylor provided commentary regarding the first five months of 2013 and discussed the build-up in tire inventories.
He emphasised that there is no tire shortage. On the contrary, millions of dollars in tires have been dropped in the aftermarket from the OEMs in the farm and construction industries. Those tires have now been released, he said.
Titan is reported as “seeing this as a bump in the road for a few months until things get back to normal.”
The selling price of Titan’s tires is also going down because material costs have been dropping.
Titan will be adjusting its December 2012 full-year guidance, but is gathering more information from mining companies (including their inventories) before doing so.
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Full story from Forbes