Titan Announces Third Quarter Sales Set Record, Exceed Analyst Expectations
21 October 1997
Titan Announces Third Quarter Sales Set Record, Exceed Analyst Expectations
OUINCY, Ill., Oct. 21 -- Titan International, Inc.
has announced record sales for the third quarter ended September 30,
1997, when compared to the same quarter of the previous year.
Net sales for the third quarter of 1997 were a record $156.7 million,
compared to $145.7 million in the third quarter of 1996. Net income for the
third quarter of 1997 was $3.6 million which equates to earnings per share of
$.17 on a fully diluted basis, compared to analysts' expectations ranging from
$.10 to $.16 per share.
During the quarter, Titan announced the decision to accelerate development
of the Grizz LSW series. The patent-pending assemblies feature a larger wheel
and a lower tire sidewall than traditional assemblies, dramatically enhancing
off-highway vehicle performance. Customer demand for the design has prompted
Titan to transfer some current wheel and tire production capacity to the LSW
series.
"We are pleased with the third quarter results," stated Maurice Taylor
Jr., president and CEO of Titan International, Inc. "We know it is important
to move forward aggressively with the Grizz LSW development for the long term
benefit of our customers and shareholders."
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 nine months ended September 30, 1997 and 1996
Three months ended Nine months ended
September 30, September 30,
1997 1996 1997 1996
Net sales $156,679 $145,682 $524,247 $489,969
Cost of sales 133,991 121,901 442,136 402,656
Realignment costs 0 10,324 0 10,324
Gross profit 22,688 13,457 82,111 76,989
Selling, general
& administrative 11,044 11,754 34,206 33,930
Research & development 2,453 720 4,805 2,205
Gain on sale of assets 0 (15,332) 0 (16,330)
Income from operations 9,191 16,315 43,100 57,184
Interest expense 4,202 2,528 10,948 7,779
Minority interest 0 0 0 2,082
Other income (862) (1,076) (1,821) (2,189)
Income before taxes 5,851 14,863 33,973 49,512
Provision for income taxes2,223 5,648 12,910 18,815
Net income $3,628 $9,215 $21,063 $30,697
Earnings per share:
Primary $.17 $.41 $.91 $1.36
Fully diluted $.17 $.34 $.91 $1.12
Average shares and
equivalents outstanding:
Primary 21,792 22,462 23,028 22,617
Fully diluted 21,832 29,315 23,070 29,480
Amounts in thousands except earnings per share data.
SOURCE Titan International