Titan announces 2014 management goals
Titan International has set a 2014 revenue goal of US$2.4 billion to $2.7 billion, the company reported on 25 November. This target assumes that Titan will not make any further acquisitions and is calculated on the premise that pricing and raw material costs will remain flat next year. Titan forecasts maintenance capital expenditure will be $70 million in 2014.
Management goals for the coming year will be discussed at greater length during a conference call scheduled for 2 December (10am US Eastern time), however in the meantime company chairman and CEO Maurice Taylor has blown the Titan trumpet a little. “In the past few years Titan International has gone from a North American farm wheel and tyre manufacturer to a worldwide manufacturer in farm tyres and wheels. We have also become a big player in the construction of mining wheels, tyres and tracks,” he stated. “As I stated last October during our third quarter results, some see the glass as half full, others see it half empty. I believe the next few years are going to be very good if you are in the farm and construction industry.”
As mentioned above, the revenue goals Titan International has set assume no further acquisitions beyond those now on the table. “There are currently four acquisitions for which Titan is performing due diligence,” commented Taylor. “If we complete these acquisitions, the maximum additional revenue would be approximately $500 million.
“We are excited about new opportunities that lie ahead for Titan in 2014,” the Titan boss continued. “One of them is our new company, Titan Tire Reclamation Corporation (TTRC), which operation will use a licensed pyrolysis system to reduce rubber tyres to oil, steel and carbon black. A single 63-inch tyre will convert into more than 500 gallons of oil and generate carbon credits. The recovered oil, carbon black and steel can be recycled into bio-diesel fuel; carbon black into green rubber products and steel into mining components such as bucket teeth. This business is a perfect fit for Titan Mining Services. We expect that many mining companies and contractors in the Canadian oil sands will sign up with TTRC next year due to the importance of recycling tyres. After we are up and running with TTRC in Canada, Titan will open up locations in Chile and Australia where there are large amounts of used 63-inch tyres to be recycled. I’ve just returned from the oil sands and the amount of business up there is truly amazing. We are enthusiastic about the profit opportunities and process of going green.”