QUINCY, Ill. (July 31) — Titan International Inc. posted higher sales and net profits for its second quarter, despite a decline in agricultural equipment demand and high raw material costs.
Sales increased 30 percent to $175.2 million and net income 33.4 percent to $5.6 million from a year earlier, the company said. Demand for farm equipment fell 5 percent in the U.S., while raw material costs escalated, said Maurice Taylor Jr., Titan chairman and CEO. He said the company is evaluating pricing in relation to the rising costs.
For the first half, sales increased 32.1 percent to $357.8 million, in part on a rise in market share from the increased manufacturing capacity from the company's Freeport, Ill., facility. Titan acquired the plant last December as part of its $100 million buyout of Goodyear's North American farm tire business.
Net profits fell 7.8 percent in the half to $14.2 million, while income before taxes rose 45.9 percent to $23.7 million in the period. Titan recorded an income tax expense of $3.7 million in the quarter and $9.5 million for the half compared with income tax benefits in the prior periods.