Titan Announces Year End Financial Results
22 February 2000
Titan Announces Year End Financial Results
QUINCY, Ill., Feb. 22 -- Titan International, Inc.
has announced net sales of $134.4 million for the fourth quarter
ended December 31, 1999, compared to $143.0 million for the fourth quarter of
1998. Net sales for 1999 were $588.0 million compared to $660.8 million for
1998.
Net loss was $(6.0) million and $(11.4) million for the fourth quarter and
year respectively, compared to net loss of $(5.3) million and net income of
$8.2 million for the fourth quarter and year end of 1998. Fourth quarter
diluted loss per share was $(.29) versus loss per share of $(.25) in the
fourth quarter of 1998.
Financial results for 1999 were negatively impacted by the extended
decline in the worldwide agricultural economy. Original equipment
manufacturers have been forced to cut production of large tractors and
combines drastically, thereby reducing orders for Titan's wheels and tires.
Ongoing labor strikes at Titan's facilities in Des Moines, Iowa, and Natchez,
Mississippi, also affected 1999 outcomes due to costs associated with training
replacement workers.
"The agricultural market downturn has taken its toll on Titan in the past
year, but we expect this to be a temporary situation. Titan's sales are
rebounding as we enter 2000," stated Maurice Taylor Jr., Titan president and
CEO. "Rather than focus on industry circumstances beyond our control, we will
define the Titan brand in the marketplace by developing innovative products
such as the LSW series."
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 manufacturing and distribution
facilities worldwide.
Titan International, Inc.
Consolidated Statements of Operations (Unaudited)
For the three and twelve months ended December 31, 1999 and 1998
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31,
1999 1998 1999 1998
Net sales $134,385 $142,951 $588,023 $660,781
Cost of sales 125,307 130,566 526,329 569,652
Gross profit 9,078 12,385 61,694 91,129
Selling, general &
administrative 12,121 14,057 51,614 52,902
Research & development 1,494 l,633 6,310 7,064
Income (loss) from
operations (4,537) (3,305) 3,770 31,163
Interest expense 6,028 4,920 23,603 18,317
Other (income) expense (945) 383 (1,388) (300)
Income (loss)
before taxes (9,620) (8,608) (18,445) 13,146
Provision (benefit)
for income taxes (3,655) (3,272) (7,009) 4,995
Net income (loss) $(5,965) $(5,336) $(11,436) $8,151
Earnings (loss) per
common share:
Basic $(.29) $(.25) $(.55) $.38
Diluted (.29) (.25) (.55) .38
Average common shares and
equivalents outstanding:
Basic 20,647 20,964 20,752 21,505
Diluted 20,647 20,964 20,774 21,632
Amounts in thousands except earnings per share data.