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.
Commenting on the enforced confinement of two Goodyear managers at the company’s Amiens Nord plant in France, Titan International’s Maurice Taylor has made it clear that he considers the action a serious crime. The Titan boss, whose company recently reappeared as a potential buyer for the Amiens Nord agricultural tyre business, added that he views the French government’s lack of response to this ‘boss-napping’ as crazy.
On 1 January 2014, Gary L. Cowger joined Titan International’s Board of Directors, replacing Mitchell Quain, who retired from the board on 31 December 2013 following a tenure of 17 years. Cowger is the chairman and CEO of GLC Ventures, LLC, a management consultancy on business, manufacturing and technology strategy and global organisational structures and implementation. He is also immediate past chairman of the Board of Trustees at KetteringUniversity (formally General Motors Institute) and he serves on the Board of Directors of Delphi Automotive and Tecumseh Products, as well as the Detroit Symphony and the College for Creative Studies.
US off-road tyre specialist Titan International has released a new category of Goodyear brand tractor tyres intended to provide better floatation. Initially two ranges from this category are on offer: The Goodyear Super Terra Grip XT 1000/40R32 and the Goodyear DT930 1100/45R46. The tyres feature a wide footprint designed for a smoother ride, tighter turn radius, reduced width, improved flotation and reduced soil compaction. Both also feature low sidewall technology, reducing road lope and power hop and improving lateral stability on hillside conditions.
The Board of Directors of Titan International has approved a quarterly cash dividend of US$.005 (one half cent) per common share for the fourth quarter of 2013. The cash dividend is payable 15 January 2014, to stockholders of record on 31 December 2013.
Titan International has set a 2014 revenue goal of US$2.4 billion to $2.7 billion, the company reported on 25 November. This target assumes that Titan will not make any further acquisitions and is calculated on the premise that pricing and raw material costs will remain flat next year. Titan forecasts maintenance capital expenditure will be $70 million in 2014.
The performance of equipment in the field can greatly impact productivity, and thus, bottom line. Titan International points out that tyres are a very important part of this equation, and with regular inspection, and – if necessary – minor adjustments, agricultural machinery operators can see great improvements in the durability and performance of the tyres in the field. Titan says that following the completion of spring planting, the time is right to inspect tyres and make necessary adjustments to ensure the rest of the season goes off without a hitch.
Scott Sloan, agricultural product manager for Titan and Goodyear Farm Tires, says it’s as simple as following the ABCs.
Road lope is a rhythmic, ‘porpoising’ motion that develops at higher speeds or in road gear when a tractor is not pulling any significant load. It often occurs because a tyre or rim is not truly round. And it’s annoying; according to a recent US survey conducted on behalf of Titan Tire Corporation, approximately 47 per cent of growers (regardless of tyre brand they’re running) identify road lope as a problem they’re currently experiencing with their tractors and combines. This physical swaying and bouncing of the machine during road transport can result in extreme rider discomfort and inhibit the grower’s productivity between fields, however there are some simple solutions that growers should be aware of in order to rectify their road lope issues.
The Grizz, aka Maurice Taylor, would have growled at Titan International’s designation as Zacks Investment Research’s ‘Bear of the Day’ on 13 November. Explaining why Titan was Zacks’ Ursidae of choice yesterday, Tracey Ryniec, a strategy analyst with the investment industry firm, opined that Titan International continues to suffer from a build-up in tyre inventory in the farm and construction industries and weak pricing.
On 6 November, Titan International completed the previously announced redemption of the outstanding US$137,681,000 aggregate principal in its ‘7.875% Senior Secured Notes due 2017’. The company redeemed the notes at a price of $1,059.06 for each $1,000 principal amount, or approximately $145.8 million in total, plus approximately $1.1 million of unpaid interest accrued to the redemption date. Titan says it did not incur any early termination penalties in connection with the redemption of the notes beyond the premium reflected in the redemption price, as described above.
One hopes Maurice Taylor knows what he may be getting himself involved with. Goodyear’s Amiens Nord plant in France, scheduled to be closed and the subject of a potential acquisition by Titan International, is once again making the news – complete with photos of flaming tyres. Workers protesting the final meeting in the consultation process with employee representatives made their feeling known today when they blocked entry to the plant and set fire to piles of tyres.
Titan International’s Titan Mining Services business has launched an operation to reclaim raw materials from mining tyres. Titan Tire Reclamation Corp. (TTRC) will work together with joint-venture company Green Carbon, using the latter’s pyrolysis process.
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