Titan’s earthmover tyre business “really taking off” – Taylor

According to Titan International chairman and CEO Maurice M. Taylor, momentum from the “outstanding” first quarter the company experienced should “carry over into future quarters of 2011.” Upon announcing sales of US$280.8 million during the three months to March 31, a 41 per cent year-on-year increase, Taylor reported continued strength in Titan’s agricultural tyre and wheel business plus growth in the earthmover and construction tyre business; this sector is, the chairman and CEO commented “really taking off and I believe it will strengthen throughout the year.” He further opined that Titan’s markets are “going to keep moving upwards over the next 18 months.”

Gross profit during the quarter grew 116 per cent to $56.3 million, while first quarter income was $26.9 million, up 165 per cent year-on-year. Adjusted net income for the first quarter was $18.7 million, compared with $2.1 million in the corresponding period of 2010.

Upon announcing the quarter results, Taylor reported that Titan will move quickly to increase capacity in South America following its acquisition of the Goodyear agricultural tyre business in South America and its Sao Paulo factory. He expects revenues for this business to grow an additional $400 million in the next 12 to 18 months. “I will also announce management’s new goals the end of May,” he added. “These goals will include the impact of the recent acquisition.  With Latin America revenue, we are anticipating record quarters for the remainder of 2011.”