QUINCY, Ill. (Oct. 29, 2008) — Farm and construction tire and wheel maker Titan International Inc. posted all-time third quarter records for sales, net income, gross profit and income from operations, the company announced.
Net sales for the quarter were $255.5 million, up 31 percent from the like period of 2007. Net income was $10.3 million, a big improvement on the $878,000 loss posted last year.
Gross profit for the three-month period was $37.4 million, more than double the $18.3 million reported in the third quarter of 2007, and income from operations was $21.3 million, a huge increase from $2.7 million last year.
Sales for the first three quarters of 2008 were $778.1 million, up 23.1 percent from the year-earlier period, and net income was $31.7 million, compared to $1.6 million in 2007.
Titan attributed the significant sales increases in the third quarter and 2008 year-to-date to “exceptionally strong demand” in its agricultural market. Sales were up 50 percent in the farm tire and wheel segment in the third quarter and about 40 percent for the first nine months of 2008 compared to 2007 levels.
Maurice Taylor Jr., Titan chairman and CEO, said Titan's third quarter was outstanding, especially considering it typically closes its facilities for one to two weeks for routine maintenance as some of its original equipment manufacturer customers often do the same thing, and employees take the majority of their vacation time during the period.
Titan's goal going forward is to make the fourth quarter its best and set a new sales record in 2008 (the standard is $837 million, set in 2007). The farm tire market is strong, Taylor said, and that should continue through 2009, as should demand in the company's mining sector.
“We know commodities have dropped, but they would need to drop a lot further than where they are now before demand starts backing down,” he said.
Titan also wants to make 900 of its giant mining tires this year, and the bulk of that production will be in the fourth quarter, Taylor said.