Titan International reaffirms 2018 business outlook
In addition to appointing Paul Reitz its eighth member, the Board of Directors at Titan International has also approved the company’s 2018 strategic and operational plan. Reitz commented that after “working hard to manage our way through three years of a cyclical downturn and then post three consecutive quarters of revenue growth this year,” it was “great to be able to present to our board a 2018 plan that continues to reflect growth across all of our business units.”
Anticipated revenue growth in the company’s 2018 plan remains in line with the forecast, announced last month, of seven to 12 per cent growth in net sales. Reitz shares that Titan International also expects gross profit to improve between 25 and 40 per cent and for EBITDA to increase by 50 to 100 per cent next year. Furthermore, the 2018 plan calls for selling, general and administrative (SG&A) as well as the carmaker’s research and development (R&D) costs to reduce to the 10.0 per cent to 10.5 per cent range, and Reitz comments that Titan International will also closely monitor its cash management and working capital.
“During 2017, we have invested in working capital to support our sales growth; however, we don’t expect the need to invest at these same levels to support our 2018 growth plan,” Reitz adds. “Our diligent focus on capital expenditure return on investment should continue to enable us to keep 2018 capital expenditure investment in the range of $35 million to $45 million, a level less than annual depreciation. As we round the corner into 2018, we believe that Titan is well positioned to continue on a positive trend and our 2018 plan as approved by our board supports that belief.”