Titan CEO: ‘markets are going higher’

Maurice Taylor, chairman and CEO of Titan International has sought to add clarity to forecasts of what is happening in the agriculture, construction and mining markets by pointing out that the firm expects to receive three-digit millions of dollars worth of orders: “I’ve had a number of shareholders and analysts call and e-mail asking what’s going on in the farm, construction and mining markets…The majority of these e-mails show concern as to why there’s not more positive guidance going out from the big boys in equipment manufacturing for 2012…”, he explained, adding:

“I’ve talked with owners of some of the largest equipment dealers in North America. This year is their best year ever and they expect next year to be even larger. They believe this because of their farm customers who are having record profits, and they are cash rich and land rich…”

Over the next three months, Titan plans to sign up customers for a minimum of $150 to $200 million of new construction and earthmoving business (wheels and tyres) going forward for 2012, 2013 and 2014. This business is on top of Titan’s current business. This added business will reportedly fill the firm’s North American tyre facilities, as well as increases in Brazil

Can all of this blow up as it did in 2008/2009? Taylor concedes it can but probably won’t: “…I don’t think [it will] because there’s too much cash on everyone’s balance sheet except Federal, State and Local governments. They should cut back, but their main cost is employees. I’ve stated it before– corporations are people. There are some new leaders at the major equipment manufacturers (Caterpillar and Deere). They are smart and aggressive and that type of leadership will flow down through the ranks. I see their best years ahead of them. The same is true with Titan. I’m the old guy, but we have a new team of go-getters. I have never seen the future look as well as it does today in farming, construction or mining.”