Titan International reported increases in sales and profit for 2013. The company’s sales increased to $2,163.6 million, up 18.8% in 2013 compared to $1,820.7 million in 2012.Gross profit was $295.2 million, or 13.6% of net sales by Dec. 31, 2013 compared to $294.1 million, or 16.2% by Dec. 31, 2012. Income from operations was $102.4 million, or 4.7% of net sales for 2013 compared to $174.7 million, or 9.6% of net sales for 2012.
“We entered 2013 very hopeful but were challenged by the market conditions and internal missteps,” said Maurice Taylor, CEO and chairman of Titan International. “The union negotiations at our three tire plants were not completed until the end of the first quarter, which we had hopes of finalizing in 2012.”
Both the wheel and tire farm businesses were strong in 2013, but due to the building of farm tire inventory at the OE level in 2012, there was a significant amount of destocking throughout the year. Taylor said the company experienced similar conditions in the construction market, as this sector showed minimal signs of recovery for 2013.
Taylor said he believes the goals he made for 2014 in December are “reasonable.” Revenue is set for $2.4 to $2.7 billion and EBITDA expectations are $240-$270 million.
Titan International plans to host a conference call on its fourth quarter earnings at 9 a.m. EST Thursday, Feb. 20. To participate in the call, dial (877)-870-4263. International callers should dial (412)-317-0790 and Canadians should dial (855)-669-9657. The call will be webcast and can be accessed at www.titan-intl.com in the “News & Events / Conference Calls” section. A replay of the call will be available until March 1, 2014.
