QUINCY, Ill. (July 28, 2006) — Despite a decrease in agricultural equipment demand and high raw material costs, Titan International Inc. reported increased sales and net income in its second quarter.
Sales rose 30 percent to $175.2 million from $134.7 million a year ago as net income also increased 33.4 percent to $5.6 million from $4.2 million last year.
Titan Chairman and CEO Maurice Taylor Jr. said farm equipment demand was down about 5 percent in the U.S. as raw material costs continued to escalate. “Titan continues to evaluate pricing in relation to these rising raw material costs,” he said.
For the first half, sales increased 32.1 percent to $357.8 million, in part on an increase in market share from the increased manufacturing capacity from the Freeport, Ill., facility. Titan acquired the plant last December as part of its $100 million buyout of Goodyear's North American farm tire business.
Net income, however, fell 7.8 percent in the half to $14.2 million. Income before taxes, however, rose 45.9 percent to $23.7 million in the period. Titan recorded an income tax expense of $3.7 million in the quarter and $9.5 million for the half compared with income tax benefits in the prior periods.