QUINCY, Ill.— Maurice Taylor Jr., Titan International Inc. CEO, expects the firm's sales to increase more than 25 percent next year from 2012 because of strong farm markets in the Americas and the global mining business, and continued growth from recent acquisitions.
Taylor also said he expects to close on some acquisitions before the end of the year or early in 2013, although he didn't elaborate. Titan has been in talks off and on with Goodyear for more than two years about Goodyear's European farm tire business.
Taylor said he expects Titan to report sales next year of $2.4 billion to $2.5 billion, up from the $1.8 billion to $1.9 billion he anticipates the firm to finish with this year. Sales of this magnitude would represent 21- to 27-percent growth.
A portion of the additional sales will come from Titan Europe, a supplier primarily of wheels and wheel assemblies to customers in the agricultural, construction, industrial and mining industries, which generated $679 million in sales in fiscal 2011. Titan International acquired full ownership of Titan Europe in October in a deal valued at $10.7.6 million.
Taylor also said he expects pretax operating income of $340 million to $400 million next year.
Titan's longer-term goal to exceed $4 billion in annual sales by 2015, Taylor said.
Looking at 2013, Taylor said he expects the farm sector will be good in North America, where Titan's capacity expansion should allow it to increase its market share. In South America farm sales should grow more than 10 percent, but Europe will be down as a whole, although Titan sees Russia as a big growth area over the next five years.