Titan increases sales by more than 50 percent in third quarter

Qquincy, Illinois - Tyre and wheel manufacturer Titan International Inc. boosted sales by 52 percent in the third quarter, as net sales rose to $156.1 million, compared to $102.7 million in 2005.

The higher sales level was attributed to the expanded agricultural product offering of Goodyear farm tyres and earthmoving/construction products resulting from the Continental Tire North America Inc. off-the-road tyre acquisition. Titan acquired Goodyear´s farm tyre business and its Freeport, Illinois, plant in December of last year and Continental's OTR business and Bryan, Ohio, facility in July.

Net income for the quarter was $488,000, down from $1.18 million in the equivalent period last year. Income from operations for the third quarter was $4.7 million, as compared to $2.2 million in 2005.

Net sales for nine months of 2006 were $513.9 million, up from the $373.6 million recorded last year. Net income over three quarters was $14.7 million, down from $16.6 million in 2005.

"In review of the third quarter, we are pleased to see how the Bryan OTR acquisition has offset the drop in farm revenue as discussed last quarter," said Maurice Taylor Jr., Titan chairman and CEO.

"Operational profit will grow as the integration of Freeport and Bryan continue. It is our belief that we can increase our OTR production greater than the planned $150 million in sales, due to the fact that our Freeport facility can produce a number of [cross-ply] OTR tyres that were in short supply at Bryan."

Taylor also said that since corn futures for December 2006 have risen in price above $3 per bushel, Titan believes the large farm equipment market will be better in 2007 than in 2006. "With a farm market holding in 2007 and an increase in output of OTR tyres, we are excited about next year," he said.

From Rubber & Plastics News (A Crain publication)

Press release from Titan