QUINCY, Ill.—Titan International Inc. suffered net and operating losses last year on 12.4 percent lower sales, but Maurice Taylor Jr., chairman, CEO and president, is confident the leaner firm will be back in the black in 2015 as key markets recover.
Titan's loss from operations reached $97.6 million in fiscal 2014, vs. a profit of $102.4 million in 2013, and the net loss hit $130.4 million vs. earnings of $29.7 million.
Sales fell to $1.9 billion.
Taylor cited drops in demand in all of Titan's major sales categories, currency exchange rate impacts, impairment charges related to asset writedowns and union-led production slow-downs for the company's swing to operating and net losses.
In response, Titan cut its workforce by 1,900 to match the reduced production. Most cuts were in Russia, where Titan let 1,300 workers go. The company cut 400 in the U.S. and 100 each in Europe and Brazil to end the year with 6,500 employees.
Titan's sales plunged in the fourth quarter, falling 34.7 percent to $383.3 million, and the loss from operations hit $66.6 million.
Taylor noted that both the agricultural and earthmoving/construction sectors had weak years in 2014, especially in the higher value-added, higher horsepower equipment categories.
During the year, Titan took $23.2 million in asset impairment and $16.7 million in inventory writedowns, reflecting the accelerated deterioration of the company's business in the large mining sector and overstocked inventories of those products.