Titan forecasting sales, earnings gains for 2014

QUINCY, Ill. (Nov. 26, 2013) — Titan International Inc. is forecasting at least a 10-percent pre-tax operating margin next year on 10- to 20-percent sales growth, according to Chairman and CEO Maurice Taylor Jr., based on organic growth and added revenue from acquisitions and new ventures.

Titan is evaluating four acquistions that, if completed, would bring about $500 million in added annual revenue. Mr. Taylor did not elaborate on the potential acquisitions; Titan has declared its interest repeatedly in acquiring Goodyear's European/Middle Eastern farm tire business, provided Goodyear can settle labor issues at a farm tire plant in Amiens, France.

(Titan International Inc. photo)

Maurice Taylor Jr.

Mr. Taylor said he expects Titan to report pre-tax operating income (EBITDA) of $240 million to $270 million on sales of $2.4 billion to $2.7 billion. This forecast presumes pricing and materials costs will remain flat throughout 2014, Mr. Taylor said, noting the 2013 results have been affected by falling prices.

Through the first nine months of 2013, Titan reported operating income of $101.8 million on sales of $1.67 billion, for an operating ratio of 6 percent.

One new venture Titan is counting on for added revenue is the Titan Tire Reclamation Corp. (TTRC), which will process scrap OTR tires using a licensed pyrolysis system. Mr. Taylor claims the venture can generate $250 million or more a year in revenue from the sale of reclaimed oil, carbon black and steel.

Titan is launching TTRC in western Canada, to service mining companies and contractors in the Canadian oil sands. The company is considering Chile and Australia—where there are large amounts of used 63-inch tires to be recycled—as the venture's second-phase openings.

Mr. Taylor also is touting anticipated growth in demand for Titan's LSW (low sidewall) OTR tires for his optimistic outlook.

Titan will host a conference call at 10 a.m. EST Monday, Dec. 2 to discuss 2014 goals.

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