Titan Announces Q2 Sales
17 July 1997
Titan Announces Record Sales for Second Quarter
QUINCY, Ill., July 17 -- Titan International, Inc.
has announced record sales for the second quarter ended June 30,
1997, when compared to the same quarter of the previous year. Net sales for
the second quarter of 1997 were a record $187.4 million, compared to $167.0
million in the prior year's second quarter.
Net income for the second quarter of 1997 was $8.2 million that equates to
$.38 fully diluted earnings per share. This compares to second quarter 1996
net income of $10.5 million and $.38 fully diluted earnings per share. The
net income was lower primarily due to the significant research and development
spending and administrative costs related to the Grizz LSW series of wheel and
tire assemblies. We expect these costs to be recovered in 1998 with
production of the Grizz LSW assemblies.
The Grizz LSW series of wheel and tire assemblies was unveiled during the
second quarter of 1997. The patent-pending assemblies feature a larger wheel
and a lower tire sidewall than traditional assemblies, resulting in improved
off-highway vehicle performance. Future years' sales and earnings will be
positively impacted by these advanced wheel and tire assemblies.
During the quarter, Titan Wheel Corporation of Ohio purchased the assets
of American Welding of Warren, Ohio. The facility will serve as a development
center for Titan's patent-pending multi-piece off-highway wheels. "Turning
this operation into a profitable company and introducing the new Grizz LSW
design represent opportunities to grow our share of the off-highway wheel and
tire market," stated Maurice Taylor Jr., Titan president and CEO. "In
addition, we are optimistic about future product innovations."
At the annual shareholders' meeting in May, Titan's shareholders approved
a corporate name change from Titan Wheel International, Inc. to Titan
International, Inc. This name change was initiated to more accurately reflect
the identity of Titan as a manufacturer of both tires and wheels.
Titan International, Inc. is a global supplier of mounted tire and wheel
systems for off-highway equipment used in agriculture, construction, mining,
military, recreation and grounds care. Titan has manufacturing and
distribution facilities throughout the United States and Europe.
Titan International, Inc.
Consolidated Statements of Operations (Unaudited)
For the three and six months ended June 30, 1997 and 1996
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
Net sales $187,360 $167,030 $367,568 $344,287
Cost of sales 157,175 136,621 308,145 280,755
Gross profit 30,185 30,409 59,423 63,532
Selling, general
& administrative 11,451 10,519 23,162 22,176
Research & development 1,685 716 2,352 1,485
Income from operations 17,049 19,174 33,909 39,871
Interest expense 4,286 2,545 6,746 5,251
Minority interest 0 1,348 0 2,082
Other income (438) (1,617) (959) (2,111)
Income before taxes 13,201 16,898 28,122 34,649
Provision for income taxes 5,016 6,422 10,686 13,167
Net income $8,185 $10,476 $17,436 $21,482
Earnings per share:
Primary $.38 $.46 $.74 $.95
Fully diluted .38 .38 .74 .78
Average shares and
equivalents outstanding:
Primary 21,752 22,717 23,657 22,696
Fully diluted 21,808 29,584 23,700 29,564
Amounts in thousands except earnings per share data.
SOURCE Titan International, Inc.