QUINCY, Ill. (July 31, 2000)—A $24 million gain related to the sale of certain assets to Carlisle Tire and Wheel Co. helped Titan International Inc. post sharply higher earnings in the second quarter.
The Quincy, Ill., maker of tires and wheels earned $18.9 million in the period, ended June 30, compared with $265,000 a year ago.
Sales declined 8.5 percent to $145.6 million from $159 million in the comparable 1999 period.
Titan also attributed most of the revenue downturn to the Carlisle purchase, which included Titan´s Clinton, Tenn., tire plant and Slinger, Wis., wheel factory. In addition, Carlisle is leasing Titan´s Greenwood, S.C., wheel facility.
For the first half, Titan had income of $19.9 million and sales of $309.9 million. This compares with earnings of $393,000 and sales of $317.7 million in 1999´s corresponding period.
Titan CEO and President Maurice Taylor Jr. said the company´s decision to drop out of the original equipment market for all terrain vehicles and lawn and garden equipment, as well as on-going cost reductions, have allowed Titan to lower its debt from $303.7 million to $219 million.
He noted that Titan´s wheel plants are increasing unit volume and tire plants are racking up monthly productivity increases, he said.
"Our innovative products and new workforces will enable Titan to move beyond the difficulties of the past two and a half years to become a powerful force in agricultural and construction wheel and tire assemblies," Mr. Taylor said.