Titan's sales, profits grow in second quarter

Quincy, Illinois -- Titan International Inc. posted higher sales and net profits for its second quarter, despite a decline in agricultural equipment demand and high raw material costs.

Sales increased by 30 percent to $175.2 million and net income by 33.4 percent to $5.6 million from a year earlier, the company said.

Demand for farm equipment fell by 5 percent in the US, while raw material costs escalated, Titan chairman and chief executive Maurice Taylor said.

He said the company was evaluating pricing in relation to the rising costs.

For the first half, sales increased by 32.1 percent to $357.8 million.

The increase was partly due to a rise in market share from increased manufacturing capacity at Titan's facility in Freeport, Illinois, which it acquired in December as part of its $100 million buyout of Goodyear's North American farm tire business.

Net profits fell by 7.8 percent in the half to $14.2 million, while income before taxes rose by 45.9 percent to $23.7 million in the period.

From Rubber & Plastics News (A Crain publication)