Titan Releases Q4 Figures
Titan has released their fourth quarter 2006 results, and these show a US$69 million, or 71 per cent, increase in net sales for the quarter. Total net sales in this period reached $165.6 million. And during the quarter, in December, Titan completed a $200 million senior unsecured five-year bond offering due January 2012.
The release of the fourth quarter results were accompanied by a statement from Titan’s chairman and CEO, Maurice M. Taylor. “Due to a nearly 15 percent decrease in the farm market in 2006, Titan is converting approximately one-third of production at our facility in Freeport, Illinois, from farm to off-the-road (OTR) tyre production.
“It is Titan’s goal to produce over $200 million in OTR tyres in 2007. Titan is also moving ahead with new designs for OTR tyres and wheels, which we believe will change the entire industry. 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.”
The company’s fourth quarter 2006 gross profit was $2.1 million, as compared to $6.7 million in 2005. Year-to-date gross profit reached $72.8 million in 2006, as compared to $64.2 million for 2005. Fourth quarter net loss amounted to $(9.5) million, as compared to $(5.5) million a year earlier. Titan’s net income for the year ended December 31, 2006 and 2005 was $5.1 million and $11.0 million respectively.