Titan International Reports Favourable Results
Titan International has reported positive first half results, with net sales of $288.2 million, (£158 million) from $260.0 million compared with 2003. Second quarter net sales increased by 29 per cent, reaching $121.2 million, (£66 million) from the previous year’s figure of $94.0 million. The net sales, for the period ending 30 June, were adjusted to reflect the sale of Titan Europe, which brought sales of $131.0 million.
A net income of $5.6 million (£3 million) was recorded for the second quarter, resulting in a $10.9 million (£6 million) year-to-date sum for 2004. The figure compared favourably to the previous year’s net losses of $(8.2) million for the second quarter and $(14.1) million for the first six months. Diluted earnings per share were $.32 for the second quarter, compared to a loss per share of $(.39) for the corresponding quarter of 2003, resulting in a $.71 increase quarter-over-quarter. Year-to-date earnings per share leveled at $.57 measured against a $(.67) loss per share in the first half of 2003.
“The first half of 2004 has shown solid progress for Titan and the strength of our order book is evidence of our customers’ preference for Titan products,” stated Maurice Taylor Jr., Titan president and CEO. “This was the right time to secure Titan’s refinancing and position the company to take advantage of growth opportunities. The outlook through 2005 is positive and Titan is prepared to meet these challenges.”
The company secured a $100 million revolving credit facility promptly in the third quarter. The agreement, secured with agents LaSalle Bank National Association and General Electric Capital Corporation, terminates former revolver and term loan arrangements. Titan also sold 5.25 per cent convertible senior unsecured notes due 2009 in a Rule 144A offering for $115 million principal amount. The notes are convertible into shares of Titan International’s common stock at an initial conversion price of $13.50 per common share. Additionally, Titan notified the trustee to redeem the $136.8 million outstanding on Titan’s 8.75 per cent senior subordinated notes, setting a redemption date of 26 August 2004.