Titan posts loss for 4Q, $11 million gain for 2005
Titan International Inc. reported a net loss of $5.5 million on net sales of $96.6 million for the fourth quarter ended Dec. 31, 2005. That compares to a loss of $1.3 million on sales of $105.9 million for the same period in 2004.
For the year, Titan posted net income of $11 million on net sales of $470.1 million. That compares to net income of $11.1 million on sales of $461.1 million (on a pro forma basis) in 2004.
(Including sales from Titan Europe, which was sold in April 2004, Titan recorded sales of $510.6 million in 2004.)
"Titan achieved another consecutive year of strong sales and profits," says Chairman and CEO Morry Taylor. "Our employees have worked hard, and it is paying off.
"The company is growing and expanding. Our acquisition of Goodyear's North American farm tire assets provides great opportunity for the future, and the best selection of American made and owned products in off-highway wheel and tire assemblies for our customers."
(On December 28, 2005, Titan Tire Corp., a subsidiary of Titan International, acquired the Goodyear Tire & Rubber Co's North American farm tire assets for approximately $100 million in cash
proceeds. The assets purchased include Goodyear's North American farm inventory and plant, property and equipment located in Freeport, Ill. The company funded the acquisition through an increase in its revolving credit facility.)
Titan posted a loss from operations in the fourth quarter totaling $17.3 million (compared a $1 million loss in 4Q 2004). Loss from operations without the Dyneer legal charge was $2.1 million for the fourth quarter of 2005.
(The State Court of California allowed the disbursement of the $24.5 million of restricted cash funds held in the Vehicular Technologies case in the fourth quarter of 2005. Titan recognized the Dyneer legal
charge for the judgment of approximately $15.2 million for this case.)
For for the year, Titan posted income from operations of $12 million, a 64% comparative decrease. Income from operations without the Dyneer legal charge was $27.2 million for 2005.
On October 11, 2005, the company received an offer from One Equity Partners LLC, a private equity affiliate of JPMorgan Chase & Co., indicating One Equity's interest in acquiring Titan International in a cash merger for $18 per share of Titan common stock.
A special committee of Titan's board was formed to pursue discussions with One Equity. The offer is subject to reaching a definitive agreement with the customary conditions, due diligence, financing, both One Equity and Titan board approvals and Titan's stockholders' approval.
Richard Cashin Jr., one of Titan's directors, is also the
managing partner of One Equity.