During a conference call yesterday, Titan International chief financial officer John Hrudicka confirmed that sales of Goodyear agricultural tyres in Europe had commenced, with initial orders being supplied from the US. “The early reception to the re-entry of Goodyear is very encouraging and demonstrates the brand still holds tremendous value in Europe,” he commented.
Shareholder approval for Titan International’s reincorporation in the US state of Delaware was given at the company’s annual meeting of stockholders on 4 June, clearing the way for the off-road tyre manufacturer to take advantage of the state’s more flexible tax laws. Stockholders also elected Anthony L. Soave to serve as a company director for a three-year term and voted to ratify Grant Thornton LLP as the company’s independent registered public accounting firm for 2015.
The second quarter of 2014 was, in the words of Titan International’s chief financial officer, “disappointing in terms of performance.” John Hrudicka reports that the 11.7 per cent year-on-year decline in sales to US$523.7 million occurred against a backdrop of price reductions, a downturn in the mining segment and a decline in agricultural markets. Gross profit also decreased 74.0 per cent to $22.6 million and was 4.3 per cent of net sales, as compared to 14.6 per cent of net sales a year earlier. Loss from operations amounted to $29.5 million in the second quarter of 2014, compared with a profit from operations of $36.9 million in the second quarter of 2013. Net income went $20.5 million into the red. Dividend declared per common share was $0.05.
First quarter 2014 financials for Titan International are out, and Maurice Taylor says the company’s performance during the opening three months of the fiscal year fell short of expectations, mainly due to a “nonexistent” mining business, declines in the original equipment and aftermarket agricultural segments, and higher fuel costs. Titan now intends to instigate a series of optimisation measures at its global facilities.