Titan reports Q3 earnings

Titan International, Inc. reported net sales of $102.7 million for third quarter of 2005, a reduction of 12% compared to $116.5 million for the previous year's quarter. Net sales for the first three quarters of 2005 were $373.6 million, up from $355.2 million for the first three quarters of 2004 on a pro forma basis, adjusted for the sale of Titan Europe in April 2004. Reported sales for the first three quarters of 2004 were $404.7 million.

Third quarter is always the toughest quarter due to Titan's various shut downs, and usually during the third quarter most OEMs adjust their inventory levels,” said Titan Chairman and CEO Maurice Taylor Jr. There's no question costs have risen further than we anticipated. In addition to working on closing various acquisitions, management, starting with myself, must keep a keen focus on our costs. We believe there will be some movement up and down in our markets over the next few months. Our business has been good, and we in management will continue our focus to drive product costs down.”

Titan Tire Corporation, a subsidiary of the Company, entered into a definitive agreement to purchase the assets of The Goodyear Tire & Rubber Company's North American farm tire business on February 28, 2005. The closing is subject to certain conditions. At the closing, Titan will purchase the assets of Goodyear's farm tire business for approximately $100 million.

On October 11, 2005, the Company received an offer from One Equity Partners LLC (One Equity), a private equity affiliate of JPMorgan Chase & Co., indicating One Equity's interest in acquiring Titan International, Inc., in a cash merger for $18.00 per share of Titan common stock. A Special Committee of the Board of Directors of Titan was formed to pursue discussions with One Equity.

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Press release from Titan