QUINCY, Ill. (Oct. 28, 2005) — Tire and wheel maker Titan International Inc. posted net earnings of $1.18 million on net sales of $102.7 million in the third quarter, down from income of $1.48 million on sales of $116.5 million reported in the same period of 2004.
Maurice Taylor Jr., Titan chairman and CEO, said the third quarter is always the toughest period due to its own manufacturing shutdowns and inventory adjustments usually made by original equipment manufacturers. Costs also have risen further than anticipated, he said.
"In addition to working on closing various acquisitions, management, starting with myself, must keep a keen focus on our costs," Mr. Taylor said. "We believe there will be some movement up and down in our markets over the next few months. Our business has been good, and we in management will continue our focus to drive product costs down."
Titan´s largest segment, its agricultural business, made up $64.6 million, or 62.9 percent, of sales for the quarter, though sales were down 8.3 percent from the same period in 2004. The company´s earthmoving/construction and consumer segments made up $31.3 million (30.5 percent) and $6.81 million (6.6 percent) of the firm's sales, respectively.
Through nine months of 2005, Titan posted net earnings of $16.6 million, up 33.7 percent from 2004. Sales for the year decreased 7.7 percent to $373.6 million.
Titan also said it has until Nov. 1 to reach agreement with United Steelworkers (USW) Local 745 at Goodyear's Freeport, Ill., farm tire plant on a new contract, before it can proceed with takeover negotiations there. Goodyear agreed in February to sell its North American farm tire business to Titan for $100 million.