Titan Reports ‘All-Time Record’ Q3 Sales

Titan International reports that its third quarter sales reached an all-time record figure of US$195.5 million, an increase of 25.2 per cent over the previous year’s third quarter result. This strong result has contributed towards record year to date sales of $632.1 million, a 23 per cent increase on the nine-month figures for 2006. Gross profit was $18.3 million for the third quarter, a 7 per cent increase over the $17.1 million obtained in the third quarter of 2006.

“The agricultural market for wheels and tyres is finally starting to show the growth we’ve been waiting for since 2006,” said Titan chairman and CEO Maurice M. Taylor Jr. “The orders for wheels and tyres are as strong as we’ve seen since 2004, and we believe it could continue to grow not only through 2008, but also into 2009 and beyond.

“The OTR mining tyre business remains strong. Since Titan announced the decision to build super giant 57- and 63-inch tyres, almost every mining company in the top 30 has made plant visits to Titan and found that we will be able to supply them with both wheels and tyres for all equipment they use in open-pit or underground mining. This should add tremendous volume going forward for Titan.

“The team of engineers that chief operating officer Ernie Rodia has put together is an impressive group. Rodia headed Goodyear’s Global Engineering and Manufacturing Technology team for five years before his retirement from Goodyear in December 2003. He has given this group a boost in energy; I’ve nicknamed them the grey haired band. To support this group we’ve added 10 young engineers,” said Taylor. “Titan’s plan is to install a 24-foot bull wheel, to be used for testing the 63-inch tyre, by January 2008. This bull wheel will have load capacity of 500,000 pounds at 42 miles per hour. The first 63-inch tyre should be built by February 15, 2008, and samples by March 2008. Production will start in second quarter 2008, and all other giant radials will be phased in during that time.

“Titan should be finishing OTR conversion at the Freeport plant during fourth quarter this year. Expansion is underway at Titan Tire in Bryan, Ohio, with the construction of an approximately 250,000-square-foot addition. This project will add jobs to the area, and allow us to produce as many as 6,000 giant tyres per year.

“Third quarter sales were great and with previously announced price increases, we expect operating profit margins to improve going forward,” Taylor added.