QUINCY, Ill.Titan International Inc. reported operating and net losses for the quarter and nine months ended Sept. 30 as the OTR tire and wheel maker suffered lower sales of key, higher profit-margin products, higher operating expenses and currency translation losses.
For the third quarter, Titan reported a pre-tax loss of $22.1 million and a net loss of $17 million on 9.6-percent lower sales of $449.6 million. The company reported pre-tax and net income of $13.4 million and $7.65 million, respectively, in the 2013 quarter.
For the nine-month period, the pre-tax and net losses were $62.7 million and $47 million, respectively, vs. pre-tax and net income of $88.8 million and $50 million a year ago. Sales fell 9 percent to $1.51 billion.
Titan CEO and Chairman Maurice Taylor Jr. attributed the quarterly performance to a number of factors, including a drop in demand for large ag and mining industry equipment, lower selling prices that reflect drops in steel and natural rubber costs, higher sales, general and administrative costs related to a Russian tire plant Titan acquired earlier this year, and roughly $13 million in currency translation losses.
As for our outlook on the markets ahead, Mr. Taylor said, we believe large agriculture equipment sales will be down at least through 2015 in North America.
Titan, in partnership with the United Steelworkers local at its Bryan, Ohio, plant, is working to realign that facility to current market conditions and improve profitability in the earthmoving/construction segment. He did not disclose specific personnel targets.
Titan said it is on schedule to launch pyrolysis operations late next year at its Titan Tire Reclamation Corp. in Fort McMurray, Alberta.