QUINCY, Ill. (April 29, 2008) — Growing demand for corn-based ethanol helped Titan International Inc. post a first-quarter net profit of $8.1 million compared with a net loss during 2007's first quarter.
Titan reported record sales of $253.5 million for the quarter ended on March 31, a 12-percent jump from last year. Much of the sales growth was caused by strong demand in the company's agricultural segment, which posted sales of $173.5 million, up 28 percent from the same period in 2007.
Income from operations reached $16.1 million for the quarter, compared with $14.3 million a year ago. “Titan's first quarter reached record levels," said Chairman and CEO Maurice Taylor Jr. "Increases in grain-based ethanol and soybean-based biofuel (have) increased commodity prices throughout the ag market.”
Taylor said the company's Titan Tire Corp. subsidiary signed a three-year agreement with John Deere affiliates April 18 to supply farm tires, a move that he said should contribute to Titan's growth and “result in one of Titan's best years yet.”
Titan also is on schedule for its start-up production of giant off-the-road tires in July, he said. The tire maker built its first 63-inch OTR radial in February and has been testing it on a new 24-foot bull wheel.