CHICAGO — Titan International Inc. reported a near tripling of income from operations in the quarter ended June 30, on 30.6% higher sales revenue.
Based on the second-quarter and first-half performance and "continued positive signs" for demand of its products, Titan management has boosted the firm's earnings outlook for fiscal 2022 by 20% to 25% to what could be record levels.
"Our expectations for financial performance remain strong and during the second half of the year we anticipate continued top-line and bottom-line expansion relative to prior year performance," Titan President and CEO Paul Reitz said.
"By almost all standards, we expect this year to be the strongest in Titan's history, and we continue to see positive signs for demand to remain robust into 2023."
Income from operations in the quarter improved 194% to $69.7 million on sales of $572.9 million, yielding a 12.2% earnings ratio.
For the full fiscal year, Titan management said it now expects to report adjusted pre-tax earnings (EBITDA) of $240 million to $250 million, up from $200 million. Sales could end up roughly 5% higher at $2.2 billion.
Titan said the increase in income from operations was due primarily to the higher sales and improvements in gross-profit margins.