Titan International announces 2014 management goals

ERJ staff report (TP)

Quincy, Illinois − Titan International announced its management goals for 2014 in a press release yesterday.

Maurice Taylor, Chairman and CEO, said: “In the past few years Titan International has gone from a North American farm wheel and tire manufacturer to a worldwide manufacturer in farm tires and wheels. We have also become a big player in the construction of mining wheels, tires and tracks. As I stated last October during our third quarter results, some see the glass as half full, others see it half empty. I believe the next few years are going to be very good if you are in the farm and construction industry.

"The revenue goal for 2014 is set at $2.4 [€1.8bn] to $2.7bn [€2bn], assuming no further acquisitions. EBITDA [earnings before interest, taxes, depreciation, and amortisation] goals are $240m [€177m] to $270m [€199m]. These figures presume pricing and material costs remain flat in 2014. In 2013, Titan saw pricing drop due to material decreases across all products. Titan forecasts maintenance Cap Ex to be approximately $70m [€51.7m] in 2014. All managers' bonuses will be based on reaching the above goals. Incentives are in place to improve the bottom line.

"There are currently four acquisitions for which Titan is performing due diligence. If we complete these acquisitions, the maximum additional revenue would be approximately $500m [€369.3m].

"We are excited about new opportunities that lie ahead for Titan in 2014. One of them is our new company, Titan Tire Reclamation Corporation (TTRC), which operation will use a licensed pyrolysis system to reduce rubber tires to oil, steel and carbon black. A single 63" [160cm] tire will convert into more than 500 gallons [1892.7 litres] of oil and generate carbon credits. The recovered oil, carbon black and steel can be recycled into bio-diesel fuel; carbon black into green rubber products and steel into mining components such as bucket teeth. This business is a perfect fit for Titan Mining Services.

“We expect that many mining companies and contractors in the Canadian oil sands will sign up with TTRC next year due to the importance of recycling tires. After we are up and running with TTRC in Canada, Titan will open up locations in Chile and Australia where there are large amounts of used 63" [160cm] tires to be recycled. I've just returned from the oil sands and the amount of business up there is truly amazing. We are enthusiastic about the profit opportunities and process of going green.”

According to its website: “Titan has a heritage of over 100 years in the off-highway wheel manufacturing business. Since Titan's entrance into the tire market in 1993, we have evolved into a leading global supplier of complete wheel and tire assemblies and undercarriage products for off-highway vehicles. Titan's primary markets include agriculture, earthmoving/construction and consumer applications.”