QUINCY, Ill. (Feb. 27) — Tire and wheel manufacturer Titan International Inc. posted net earnings of $11 million in 2005, the second consecutive year in which the company finished in the black.
The result came despite a net loss of $5.5 million in the fourth quarter. The loss was due in part to a $15.2 million charge taken in the quarter regarding a breach of contract lawsuit involving Titan´s wheel business.
The Quincy-based firm reported net sales of $470.1 million for the year, down from $510.6 million in 2004. Excluding Titan Europe, which was sold in April 2004, pro forma sales for that year were $461.1 million, the company said.
Net sales for the fourth quarter were $96.6 million, down 8.8 percent from the like period of 2004. Gross profit for the quarter was $6.7 million, compared to $13.1 million a year earlier.
"Titan achieved another consecutive year of strong sales and profits. Our employees have worked hard, and it is paying off," said Maurice Taylor Jr., Titan chairman and CEO. "The company is growing and expanding. Our acquisition of Goodyear´s North American farm tire assets provides great opportunity for the future, and the best selection of American made and owned products in off-highway wheel and tire assemblies for our customers."
Titan completed the purchase of Goodyear´s North American farm tire business on Dec. 28 for about $100 million. The assets purchased included about $45 million in inventory and supplies and about $55 million in plant, property and equipment located in Freeport, Ill. The company funded the acquisition through an increase in its revolving credit facility.
Titan has said the Goodyear deal could increase annual sales by as much as $250 million.