Titan International Inc. posted net income of $5.1 million on net sales of $679.4 million for its fiscal year ended Dec. 31, 2007. That compares to net income of $11 million on sales of $470.1 million for fiscal 2005.
Income from operations for the year increased to $22 million from $12 million, an increase of 83%.
For the fourth quarter, Titan recorded a net loss of 9.5 million on net sales of $165.5 million. That comparess to a net loss of $5.5 million on sales of $96.6 million for 4Q 2005.
"Due to a nearly 15% decrease in the farm market in 2006, Titan is converting approximately one third of production at our facility in Freeport, Ill., from farm to off-the-road (OTR) tire production," says Titan Chairman and CEO Maurice Taylor.
"Titan's three tire facilities in Freeport, Des Moines, Iowa, and Bryan, Ohio, began a process of realignment this past fourth quarter, and will continue this process through the second quarter of 2007. It is Titan's goal to produce over $200 million in OTR tires in 2007.
"Titan is also moving ahead with new designs for OTR tires and wheels, which we believe will change the entire industry," he says. "The farm business is starting to grow, but it will be later in the year before Titan can say how strong it will be in 2007."
Titan attributes the higher sales level to both the expanded agricultural product offering of Goodyear farm tires and the earthmoving/construction products resulting from the addition of the Bryan plant (which was acquired from Continental Tire North America Inc. on July 31, 2006).
In December 2006, Titan completed a $200 million senior unsecured five-year bond offering due January 2012.
