QUINCY, Ill. (July 31, 2009)—Titan International Inc.'s net income fell 55.6 percent to $5.91 million during the second quarter as sales also declined 23.1 percent to $207 million.
Titan's half-year results as of June 30 also showed declines in sales and income. Year-to-date net income fell 39.3 percent to $13 million. Half-year sales decreased 15.8 percent from 2008 to $439.6 million.
The Quincy-based tire and wheel maker said its total debt on June 30 was $193.8 million, a reduction of $31.2 million since Dec. 31.
Titan Chairman and CEO Maurice Taylor Jr. said in a release that business slowed down during the second quarter, and the construction equipment business will not recover until the fourth quarter of 2010.
Taylor also said he doesn't expect Titan to see any growth in the small agricultural tractor sector until after the 2010 election. The large farm tire business, however, should maintain its volume, he said.
In the mining tire business, Taylor said the shortage in supply is over and is now heading “from shortage to overcapacity in the next 12 months” for 63-inch tires and smaller.
In response to these challenges, Titan cut employee salaries 5 percent July 1, and Taylor said an extra 10 percent from his salary will be donated to the Brent Taylor Memorial Charitable Trust, a scholarship fund for the children of company employees.
In the meantime, Taylor said the company will continue to develop new products.
“The third quarter will be Titan's weakest quarter, and fourth quarter should show a pick-up, but to predict sales figures and EBITDA for 2009 with markets moving so fast doesn't make sense. It will be what it will be,” Taylor said.