US company Titan’s first quarter financial results show that the company achieved a 34 per cent increase in net sales. First quarter 2006 net sales were $182.6 million, compared to $136.1 million in first quarter 2005. Gross profit increased by 29 percent, or $7.0 million. First quarter 2006 gross profit was $31.1 million ($24.1 million Q1 2005).
(Akron/Tire Review) Not surprisingly, the United Steelworkers (USW), which is facing difficult contract and cutback talks with Continental Tire North America (CTNA), publicly “welcomed” news that Titan International is seeking to buy CTNA’s Bryan, Ohio, OTR plant. The union had refrained from making any public statements regarding the plant’s previous suitors – Roesler Group and Pensler Capital – though. And, the USW’s support of Titan comes after the two parties spent the last five years at virtual war, including a 40-plus month strike.
(Akron/Tire Review) Just as suddenly as it came up, One Equity Partners has ended its quest to acquire Titan International Inc. One Equity Partners made an $18 per share offer last October, a move opposed by one of Titan’s largest shareholders but support by the company’s board.
(Akron/Tire Review) Various news reports say that Titan International Inc. and the United Steelworkers (USW) plan to petition the International Trade Commission next month, seeking antidumping penalties against companies importing agricultural tyres from China. Reportedly, the parties feel that agricultural tyres imported from China are not being sold in the US at fair prices, even after factoring in freight and raw material costs.
Titan International’s board of directors has approved a quarterly cash dividend of $.005 (one half cent) per common share for the first quarter of 2006. The cash dividend is payable 17 April 2006, to stockholders of record on 31 March 2006.
(Akron/Tire Review) Pensler Capital Corp. is out of the running to buy Continental Tire North America’s (CTNA) OTR tyre plant in Bryan, Ohio, sources told Tire Review. Titan International now appears to be the front-runner to obtain the giant tyre facility.
Pensler, said sources, held a number of negotiating sessions with the United Steelworkers and USW Local 890 to facilitate the purchase, but the union rejected each offer made. Pensler, which owns Denman Tire Corp, came into the bidding in January and had signed a letter of intent to buy the plant on 16 January.
(Akron/Tire Review) Titan International Inc. saw its total sales drop in 2005 from $510.6 million to $470.1 million, but net profits fell only mildly – from $11.1 million in 2004 to $11 million last year. The company’s net sales in 2004, though, included sales of $49.4 million recorded by Titan Europe, which Titan said was sold in April 2004. Excluding the impact of Titan Europe, Titan saw its 2005 sales up 2 per cent versus 2004.
(Akron/Tire Review – Quincy Herald-Whig) Morry Taylor, who created a stir when he ran for president in 1996, is shaking things up again. This time, the president and CEO of Quincy-based Titan International took out a full-page ad 2 February in USA Today calling on Americans to demand common-sense solutions to some of the problems facing this country.
The top of the ad reads in bold print: “Americans are you stupid? I don’t think we are, but politicians, bureaucrats and the intelligent elite think so.” Taylor used the ad as a platform to express his views on a variety of issues he feels are being mishandled by the nation’s leadership.
Titan International, Inc. has reached an agreement with the United Steelworkers in a civil RICO case that began in September 2000. The case was dismissed on Wednesday, 1 February in Springfield, Illinois.
“This disagreement started with the strike on May 1, 1998, and it has been a real fight,” said Maurice M Taylor, Titan chairman and CEO. “There’s no question that both parties were putting a lot of passion and money into this lawsuit. Titan believed it would have been successful, just as we were successful in the shareholder derivative suit brought against Titan by law firm Milberg Weiss, Bershad, Hynes, and LeRach LLP, but during negotiations with Goodyear on their North American farm tyre business, which took over 22 months, it became clear that Titan and the USW have a common goal—American jobs that pay fair wages and benefits. Titan agrees with that, but Titan believes it runs the factories, and if you pay for eight hours of work, you should get eight hours of work,” said Taylor.
(Akron/Tire Review) Titan International has said that it is still reviewing the $18 per outstanding share offer it received in October 2005 from One Equity Partners, a JP Morgan Chase & Co. unit.
(Akron/Tire Review) The sale of Titan International Inc. to One Equity Partners, a private equity group of JP Morgan Chase & Co, should be completed by the end of February, according to Maurice Taylor Jr, Titan’s chairman and CEO. Taylor said the special board committee of Titan directors formed to pursue talks with One Equity will vote on the deal by the middle of February. Shareholders will vote at the end of the month, he said.
(Akron/Tire Review) Titan Wheel Corp., a subsidiary of Titan International Inc., issued its annual winter bonus to employees. According to Titan, bonuses averaged $1,000 per employee, and included $200 in Sacajawea coin dollars. “Every year our employees work hard. With their dedication and strong work ethic, Titan has become a leader in our business,” said Morry Taylor, Titan chairman and CEO. “The workers and their families deserve special thanks.”
(Akron/Tire Review) Tire and wheel maker Titan International Inc has settled a dispute with the City of Brownsville, Texas, home of its now closed tyre plant, agreeing to give the city 73.5 acres of land. The agreement ends a two-year lawsuit filed by Brownsville in the wake of Titan’s sudden closing of the plant in 2003.
Titan Tire Corporation, a subsidiary of Titan International, Inc., has announced the appointment of Jeff Vasichek as vice president of sales and marketing, responsible for all aftermarket and original equipment sales, effective 1 January 2006. In this position, Vasichek will be responsible for integrating the recent acquisition of Goodyear’s farm tyre sales and marketing with Titan’s tyre and wheel businesses.
The Board of Directors of Titan International, Inc has approved a quarterly cash dividend of $.005 (one half cent) per common share for the fourth quarter of 2005. The cash dividend is payable 13 January 2006, to stockholders of record on 30 December 2005.
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