Titan International saw a decrease in sales and gross profit for 2014.
The tiremaker reported a 12% decrease in sales year over year to $1.895 million. The company also reported a gross profit of $140.6 million for 2014 versus $295.2 million for 2013.
Titan’s biggest challenges for business sales were in the agriculture, construction and mining sectors, according to Maurice Taylor, CEO and chairman of Titan International.
He noted that mining demand was slow all year. While the 100hp and under sector has increased for agriculture OEMs, the sales margins for this segment are much lower than for the big iron segment, which has been cut, Taylor said. Additionally, construction has been steady but hasn’t reached the levels experience during 2007, and prices are lower due to over supply, he said.
Additionally, currency issues impacted numbers, according to Taylor.
“The currency change really hit in the third and fourth quarters because the entire inventory dropped in price and so did the receivables. Just look at the ruble; it was 30 to 1 near the end of 2013 and now it is at 60 to 1,” he said.
Despite challenges in 2014, Taylor is optimistic about the coming years.
“Titan is lean and ready to go in 2015,” he said. “My EBITDA goal for 2015 is approximately $115 million. I know someone will ask when the company will get to $200 million. The answer to that is simple – I believe that this will happen when sales get back over $2 billion. I don’t know when that will happen, but I do believe 2015 and 2016 are years for growth.”
