In its first full quarter since acquiring Goodyear's North American farm tire business, Titan International Inc. posted a 34.1-percent gain in net sales though net income dropped 23.2 percent.
Titan's sales for the first quarter hit $182.6 million, up from $136.1 million last year. Agricultural sales in the quarter rose 39.1 percent to $124.4 million. The acquisition, which included licensing rights to produce Goodyear-branded products, included $1.6 million in royalty expenses in the quarter, Titan said.
The firm said the lower net income was the result of a higher effective tax rate of 40 percent vs. 10 percent in 2005. Titan's income from operations rose to $17.2 million from $14.1 million last year.
``During the early stages, the company's acquisition of Goodyear's North American farm tire assets is proving to be an extremely positive addition to the Titan organization,'' Titan Chairman and CEO Maurice Taylor Jr. said in a statement. ``As always, we stand willing and ready to evaluate acquisition opportunities in off-highway wheels and tires that would further strengthen Titan's business and performance.''
Also during the quarter the proposed deal for Titan to be acquired by One Equity Partners was terminated. Titan's largest stockholder opposed the $18 per share offer.