Titan Reports Record Third Quarter Sales and Net Income
Titan has reported all time third-quarter sales, profit and income results upon releasing its latest financial results. Sales for third quarter 2008 were $255.5 million, an increase of $60 million, or 31 per cent, as compared to $195.5 million in the third quarter of last year. Gross profit, at $37.4 million for the quarter, showed an improvement of over $19 million, or 105 per cent, from the $18.3 million recorded in last year’s third quarter. Income from operations was $21.3 million for the third quarter of 2008, rising $18.5 million, or 688 per cent, compared to $2.7 million in the previous year’s third quarter. Net income was $10.3 million for the quarter, an improvement of $11 million, compared to last year’s third quarter loss of $900,000.
“Titan had the best third quarter in our history, and we came close to breaking our all-time record,” said Titan chairman and CEO Maurice M. Taylor Jr. “The third quarter is unique in that we typically close our facilities for 1-2 weeks for routine maintenance, our employees take the majority of their vacation time during this quarter, and our OEM customers also shut down for a few weeks in this time period as well. With those things considered, it really says something about how outstanding this quarter was for Titan.
“In addition, each facility is currently undergoing major capital improvements for Titan’s super giant steel belted radial tyre programme,” Taylor added. “This project includes both wheel and tire operations. Titan has also been training over 200 new employees throughout the company, and we earned $.30 per share for the quarter. So what’s ahead for next quarter and 2009?”
Taylor expressed a positive outlook for the rest of the year: “Titan has set a goal to produce 900 super giant tyres in 2008, and I believe this is still achievable. The majority of production will be in fourth quarter. Our goal is to make fourth quarter our best, and we will set a record for 2008. The farm tyre market is strong, and should continue through 2009, as should the strength seen in Titan’s mining market. We know commodities have dropped, but they would need to drop a lot further than where they are now before demand starts backing down.
“Titan is the lowest-cost manufacturer of tyres and wheels in North America, period. We have built the lowest cost manufacturing operations and have the lowest SG&A, so we are prepared for whatever comes about in the marketplace, but for now we expect positive results. After Titan’s Board of Directors meeting in December, I’ll give my thoughts on my goals for sales and EBITDA for 2009.
“Titan’s super giant tyres are running in three mines and all are performing better than expected, with no failures-so much for rumours, folks!” the chairman and CEO concluded. “The fourth quarter will see Titan’s super giant steel belted radials in mines around the world, period.”