Q2 sales, operating profit a record for Titan International
Alongside news of its all-share offer for Titan Europe, Titan International reported record second quarter sales and operating profit. Sales during the three months to 30 June were, at US$459.2 million, 14 per cent higher than in the corresponding quarter of 2011. Gross profit increased 28 per cent to $82.1 million, or 17.9 per cent of net sales. Second quarter income from operations was $81.0 million, up 82 per cent compared with last year’s second quarter result of $44.4 million. Adjusted net income for the second quarter was $28.8 million, compared to $23.7 million in the second quarter of last year.
“The second quarter was a record for Titan, but it could have been even bigger,” announced Titan International chairman and CEO Maurice M. Taylor. “The order books are very strong. The tyre group was affected by the record heat wave and it impacted our efficiency. The Bryan plant was also affected by the equipment being added to the plant for the capacity expansion. The work has been in process since the beginning of the year and will continue through the remaining of 2012. This capacity expansion should increase our output each quarter through the first quarter of 2013.
“Our balance sheet is in good shape with working capital equal to approximately $480 million and cash debt of $208 million, considering the $112 million convertible notes have a conversion price of $10.75. This is the hidden value of the company to our shareholders in addition to today’s value of the plants and equipment.”
Taylor noted that there “have been a few announcements on acquisitions that should close in the third quarter,” but said Titan is not permitted to share further details, including the company’s future projections, for these acquisitions. The chairman and CEO only went so far as saying “I believe Titan is on the correct course to strengthen this company for the shareholders and our employees.”