H1 Revenues May Dip 35%, Says Titan Europe

Worcestershire based wheel manufacturer Titan Europe Plc has warned that its anticipated revenue for the first half of this year may be 35 per cent lower than a year ago. The company, whose two major shareholders are Mefro Wheels GmbH and Titan International subsidiary Titan Luxembourg Sarl, notes this figure in particular reflects the further weakening its second quarter performance.

“Trading conditions remain difficult with the construction market continuing to be severely hit by the global recession,” stated a June 29 company trading update. “The directors expect by the half-year, based on constant exchange rates, that construction market volumes will be down by about 50 per cent whilst agricultural and mining markets will be down by between 25-30 per cent. Against this backdrop, the Board anticipate that group revenue will be approximately 35 per cent lower at its half-year period end compared to the same stage last year reflecting in particular, the further weakening in its markets during the second quarter 2009.”

To counter these lower sales, Titan Europe has reduced its workforce; between the start of the year and the end of May the number of employees on the company’s payroll has decreased by 35 per cent. As part of this programme Titan Europe is, according to the trading update, making full use of government supported temporary layoff schemes where available, primarily in Italy.

The trading report comments “at this stage it is impossible to offer an opinion on the pace of market recovery.” However Titan Europe’s directors report that discussions on future business with its key customers have been “generally positive”, and “signs of small improvements” have also been noted in order books for late 2009. The company expects these developments to influence revenues in the financial year’s final quarter. The directors also state that trading performance for the financial year ending 31 December 2009 currently remains in-line with market forecasts.