Titan Announces Third Quarter Earnings
20 October 1998
Titan Announces Third Quarter Earnings
QUINCY, Ill., Oct. 20 -- Titan International, Inc.
has announced net sales of $149.2 million for the third quarter
ended September 30, 1998, compared to $156.7 million in the third quarter of
1997. Year to date net sales were $517.8 million, compared to $524.2 million
for the first three quarters of 1997, negatively impacted by labor strikes at
Titan Tire's Des Moines, Iowa, and Natchez, Mississippi facilities.
The strikes adversely affected income from operations by approximately
$8.5 million and net income by approximately $5.2 million for the current
quarter. Income from operations for the quarter was $5.0 million, compared to
$9.2 million for the quarter in 1997. Net income for the third quarter of
1998 was $0.4 million, compared to $3.6 million for the third quarter of 1997.
Diluted earnings per share for the third quarter were $.02 compared to
$.17 for the same quarter of the previous year.
Approximately 600 members of the United Steelworkers Local 164 at the
Des Moines facility have been on strike since their contract expired on
April 30, 1998. Currently, more than 320 replacement workers are being
trained in production at the facility, and an additional 200 are expected to
be hired by the end of November. Production increases are being achieved on a
weekly basis due to intensive training efforts.
During the third quarter, Titan acquired the assets of Condere
Corporation, including Fidelity Tire of Natchez, Mississippi. The
United Steelworkers Local 303L has since rejected the court ordered contract
for the Natchez facility. Titan will begin hiring workers at Titan Tire
Corporation of Natchez in the upcoming weeks.
"We have a responsibility to our customers and employees to offset the
impact caused by the actions of the United Steelworkers Union," stated
Maurice Taylor Jr., president and CEO of Titan International. "It is our
objective to continue to meet the needs of our customers and to lead the
off-highway wheel and tire industry into the future."
Titan is a global supplier of mounted wheel and tire systems for
off-highway equipment used in agriculture, construction, mining, military,
recreation and grounds care. Titan has worldwide manufacturing and
distribution facilities.
Titan International, Inc.
Consolidated Statements of Operations (Unaudited)
For the three and nine months ended September 30, 1998 and 1997
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
Net sales $149,186 $156,679 $517,830 $524,247
Cost of sales 130,166 133,991 439,086 442,136
Gross profit 19,020 22,688 78,744 82,111
Selling, general &
administrative 12,538 11,044 38,845 34,206
Research & development 1,465 2,453 5,431 4,805
Income from operations 5,017 9,191 34,468 43,100
Interest expense 4,678 4,202 13,397 10,948
Other income (334) (862) (683) (1,821)
Income before taxes 673 5,851 21,754 33,973
Provision for income taxes 256 2,224 8,267 12,910
Net income $417 $3,627 $13,487 $21,O63
Earnings per common share:
Basic $.02 $.17 $.62 $.91
Diluted .02 .17 .62 .91
Average common shares and equivalents outstanding:
Basic 21,657 21,615 21,687 22,899
Diluted 21,725 21,831 21,856 23,047
Amounts in thousands except earnings per share data.