France should turn communist when everything goes wrong. That’s the advice Maurice Taylor doled out during an interview with France Info radio. The contents of the interview have been reported by AFP and provide an interesting further chapter to the tome of outspoken comments the Titan International boss has made in relation to the tyre maker’s failed attempt to acquire the Goodyear agricultural tyre facility in Amiens Nord, France.
Titan International released its third quarter 2014 results yesterday, and in the words of chief executive officer and chairman Maurice Taylor, there were a lot of negatives to see. This is bad news for management, bad news for shareholders and, for many Titan employees, very bad news.
Titan Distribution UK Limited, a subsidiary of Titan International, Inc., has appointed Stoke-based earthmover tyre specialist, T&C Site Services as a new dealer for the UK. The partnership is intended to offer far greater access to Titan industrial, construction and mining tyres to customers throughout the region.
The Board of Directors of Titan International has approved a quarterly cash dividend of US$.005 (one half cent) per common share for the third quarter of 2014. The cash dividend is payable Wednesday 15 October 2014 to stockholders of record on Tuesday 30 September 2014.
The second quarter of 2014 was, in the words of Titan International’s chief financial officer, “disappointing in terms of performance.” John Hrudicka reports that the 11.7 per cent year-on-year decline in sales to US$523.7 million occurred against a backdrop of price reductions, a downturn in the mining segment and a decline in agricultural markets. Gross profit also decreased 74.0 per cent to $22.6 million and was 4.3 per cent of net sales, as compared to 14.6 per cent of net sales a year earlier. Loss from operations amounted to $29.5 million in the second quarter of 2014, compared with a profit from operations of $36.9 million in the second quarter of 2013. Net income went $20.5 million into the red. Dividend declared per common share was $0.05.
Arguments about greater steering precision aside, the chief reason for fitting low profile tyres to a car is to enhance its appearance. But a narrow sidewall is favoured by some in the off-road sector for entirely difference reasons. Titan International developed its first low profile – it calls it low sidewall, or LSW – off-road tyre in the 1990s and initially introduced the technology on the Caterpillar-brand skid steer tyre in 1999. The company believes that when the benefits of LSW are more widely known the technology will gain widespread acceptance, and to spread word about LSW a new, dedicated website has been rolled out.
Titan International has announced that its subsidiary, Titan Tire Reclamation Corp., (TTRC) is leasing ten acres (4 hectares) of land from Suncor Energy, north of Fort McMurray, Canada for ten years to operate a pyrolysis system developed by Green Carbon, a company controlled by Fred Taylor, brother of Titan International chairman and CEO Maurice Taylor. Titan Tire Reclamation has already engaged in negotiations with various companies operating in Canada’s oil sands regarding the disposal of OTR tyres and conveyor belting.
The Board of Directors at Titan International is set to grow with the appointment of a new director. On 1 June, Dr. Mark Rachesky will join chairman Maurice Taylor and six other directors on the board. Taylor has commented that “all of Titan’s directors had the opportunity to meet Dr. Rachesky and agreed he would make an excellent board member and bring a new voice to Titan’s shareholders. We look forward to his participation on the board.”
First quarter 2014 financials for Titan International are out, and Maurice Taylor says the company’s performance during the opening three months of the fiscal year fell short of expectations, mainly due to a “nonexistent” mining business, declines in the original equipment and aftermarket agricultural segments, and higher fuel costs. Titan now intends to instigate a series of optimisation measures at its global facilities.
The Board of Directors of Titan International has approved a quarterly cash dividend of US$.005 (one half cent) per common share for the first quarter of 2014. The cash dividend is payable 15 April 2014 to stockholders of record on 31, March 2014.
Titan has expanded its OTR product range with new Low Sidewall (LSW) options for light, medium and heavy-duty equipment. These tyres, with their larger rim diameter and smaller sidewall than standard tyres, offer improved equipment stability and performance.
The Board of Directors at Titan International, Inc. has approved the promotion of Paul Reitz from his current position as the company’s chief financial officer to the open position of president. Reitz’s promotion takes effect 3 February. Taking his place as chief financial officer is John Hrudicka, who was previously presiding chief financial officer at Elkay Manufacturing.
This week’s agreement between Goodyear Dunlop Tires France and the CGT union over the tyre maker’s Amiens Nord factory removes the major obstacle that blocked Titan International’s acquisition of the Amiens Nord agricultural tyre business. After hearing that the two parties have buried the hatchet, Titan CEO and chairman Maurice Taylor indicated he’s once again prepared to do business.
According to filings submitted to the US Securities and Exchange Commission, private equity firm MHR Fund Management has acquired nearly five per cent of Titan International’s shares and has options to boost its holdings to 10.9 per cent. On 9 January, MHR purchased 2.6 million shares in the tyre maker for approximately US$39.5 million. In addition, the company paid almost $28.2 million for options that give it the right to buy 3.24 million more shares for $26.3 million.
French Prime Minister Jean-Marc Ayrault and Minister of Industrial Renewal Arnaud Montebourg have welcomed the end of the long-term standoff over Goodyear’s Amiens Nord factory. In a statement issued on 22 January, Montebourg expresses confidence that the signing of a deal between Goodyear management and representatives of the CGT (Confédération générale du travail or General Confederation of Labour) union will end the plant’s occupation and seven years of tension.
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