Titan International Inc. posted net income of $95.6 millon on net sales of $1.8 billion for its fiscal year ended Dec. 31, 2012. That compares to income of $58.1 million on sales of nearly $1.5 billion for fiscal 2011.
The company's Income-to-sales ratio was 5.2%, compared to 3.9% the previous year. Its operating income was up 32.1%, from $132.2 million to $174.7 million.
Titan recorded a net loss of $3.5 million on net sales of $493.6 million for the fourth quarter. That compares to income of $14.5 million on sales of $402.9 million for 4Q 2011.
“This past year was a record year in every way," says Chairman and CEO Maurice Taylor. "We added to our global footprint with the purchase of Titan Europe and Planet Group located in Perth, Australia. Both additions will expand our business opportunities in the agriculture and construction/earthmoving markets."
(During the fourth quarter, Titan acquired 100% of the outstanding stock of Titan Europe Plc. Prior to the acquisition, Titan held a 21.8% ownership percentage in Titan Europe.)
"The fourth quarter had two negative problems: One, the construction slow down in Europe and its effect on the newly acquired Titan Europe Business, and the extra costs due to the start up of the wheel facility resulting from the earthquake in Italy. Insurance claims should cover the cost of the damage sustained, and we have seen a strengthening of the market for the steel track business.
“One of the biggest problems in the quarter was in the performance of the three U.S. tire plants. I believe most of this had to do with the unionized work force due to the fact that both Freeport and Bryan have been working for the past two years under a best and final proposed contract. The company and the union have been negotiating the terms of a new CBA since September 2012.
"The union is in the process of reviewing the proposed CBA. The union has told Titan that they expect all three Titan Tire plants to vote on the new four-year proposed contract the week of March 4, 2013. Titan believes this proposed contract is fair to our employees and the company.
“The farm business for 2013 will continue to be strong, as is mining," he says. "The construction side is starting to show a little strength in the United States."
In January 2013, Titan was approached by a note holder of the company's 5.625% convertible senior subordinated notes due 2017 (convertible notes), with an offer to exchange the note holder's convertible notes for the company's common stock.
The two parties privately negotiated an agreement to exchange approximately $52.7 million in aggregate principal amount of the convertible notes for approximately 4.9 million shares of the company's common stock plus a cash payment totaling $14.2 million for the premium on the principal and unpaid interest to maturity.
For more information on Titan and its products, visit www.titan-intl.com.
