Titan International’s 2015 first half net sales were down, but the company’s gross profit is up.
“As I’ve mentioned during the past few quarters, when things get tough, Titan keeps moving. Historically, Titan has successfully navigated through these difficult cycles. The new leadership team is maturing and gaining further ‘seasoning’ while managing through these difficult markets. I am confident this new management team will ultimately lead and drive this company to new heights,” Maurice Taylor, CEO and chairman of Titan.
The tiremaker reported a 27% decrease in net sales for the first six months of 2015 compared to 2014. Titan posted $778.1 million in sales for 2015 compared to $1,062.7 million in 2014.
Sales decreases come as the agricultural market remains in a cyclical downturn, the tiremaker said. While ag sales were down the decreases were partially offset by stable demand for products used in the construction industry, Titan said.
Despite sales for 2015 being lower year over year, gross profit for the first half of 2015 are $93.8 million compared to $72.8 million in 2014.
“A significant challenge during the past several years has been trying to drive market adoption of the innovative LSW solution. After creating ‘pull’ through with the big farmers, large contractors, and mining companies, we are establishing traction and gaining momentum with the OEMs. Titan is converting new customers every day to the LSW technology,” Taylor said. “While our markets remain soft and our customers seek greater efficiencies, LSW will become a more prominent solution of choice, as it improves every facet of equipment performance.”
Taylor also noted that Titan is in discussion with equipment dealers to trade traditional tires and wheels for its LSW technology.
“We believe this program will potentially drive customer loyalty and ultimately improve their bottom line. A movement is building whereby our end customers will purchase their equipment without tires/wheels, and acquire the LSW technology separately, for the equipment enhancements and potential tax benefits.”
Moving forward in 2015, Titan will produce a line of Goodyear ATV tires. The tiremaker is also exploring plans to expand its wheel plant in Turkey and possibly open a facility in Brazil.
