Titan 2Q sales up 29%
Titan International reported second quarter 2013 sales of US$593.3 million 25 July 2013, up 29.2 per cent, compared to $459.2 million in the second quarter of 2012 partially driven by acquisition growth. Gross profit increased 5.6 per cent to $86.7 million, or 14.6 per cent of net sales in the period, compared to $82.1 million in second quarter 2012, or 17.9 per cent of net sales. However, second quarter income from operations was $36.9 million compared to $81.0 million last year.
Chairman and CEO, Maurice M. Taylor commented: “Titan continues to execute our business strategy through acquisitions and product innovation. Titan is making the focused investments needed to deliver the long term growth opportunities to the company.”
Referring to news of the company’s latest acquisition move, this time in Russia, he added: “Titan is planning to close on the purchase of Voltyre-Prom, which is the leading producer of agricultural and industrial tyres in Russia, no later than 1 September 2013. This acquisition will increase our international footprint and be Titan’s base for other acquisitions in the CIS region. The South American farm tyre market is getting stronger for Titan and we look to establish wheel manufacturing in the region to complement the tyre offering in the coming year. Along with these strategic moves, we continue to tighten costs across the company.”
And this, it seems, is the basis for the company’s optimistic outlook for the second half of the year: “As a result of acquisitions, Titan will see record revenue in the second half of 2013. If the markets remain as they are, Titan will continue its growth similar to the last few years…Titan’s primary business is farm tyres and wheels where volume has remained strong. Titan has been building the Goodyear farm tyre brand since 2006 as represented by our leading market share in North America. We believe that this American brand will allow Titan to gain greater market share in the coming years although, the construction market continues to show signs of weakness.”
Titan’s sales increased approximately 38 per cent from the addition of recently acquired entities including $154.4 million at Titan Europe. Net sales for the first half of 2013 were $1,171.7 million, compared to $922.3 million in the first half of 2012, an increase of 27 per cent. Year to date sales increased approximately 36 per cent due to recent acquisitions of which $303.1 million is attributed to revenue from Titan Europe. However growth was partially offset by price/mix reduction from lower raw material prices and unfavourable currency translation.
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