Titan reports record earnings in Q2

ERJ staff report (DS)

Quincy, Illinois -- Titan Tire has reported record sales and profits in the three months to June 2011. In an upbeat presentation, Maurice Taylor, Chairman and CEO. said, “I told everyone last quarter that everything was going well, but I didn't think the Titan team would be moving this quickly. The forecast I made in May is too low for sales and EBITDA."

Sales for second quarter 2011 set an all-time record at $404.4 million up 76 percent, compared to $229.7 million in the second quarter of 2010. Gross profit for second quarter 2011 was record-setting at $63.9 million up 88 percent, compared to $33.9 million in 2010.

“Farm, earthmover and construction are all going up. Natural rubber and synthetic rubber are still rising in cost. Our announced price increase will bring our margins back to first quarter for North America. Our Goodyear South American purchase is doing better than we thought it would. When you look at their numbers, remember two thirds of the revenue is at cost. The equipment we will be shipping to them will increase their sales and profit. Titan expects real growth and profit from South America in 2012.”

Taylor announced, “The Goodyear Europe acquisition has a drop dead timeline of November 3, 2011. If Goodyear and the trade unions agree, then I believe Titan has the opportunity to add approximately $400 million in revenue in 2012 out of this facility.

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Press release from Titan Tire