QUINCY, Ill. -- (Business Wire)
The following is a statement from Maurice Taylor, Titan International
Chairman & CEO.
2012 was again record revenue, net income, gross margins, operation
margins, just everything. The only negative is we could have done better
and I’m the one who didn’t keep a better eye on the changes taking place
2013 is a totally different story and a new chapter. Farm will be good
in North America and our capacity expansion should increase Titan’s
overall market percentage. South America’s farm sales should grow more
than 10% and again, with our capacity expanding, we should increase our
We believe Europe will be down and that is the one negative spot
worldwide. Russia should be a big growth area over the next five years
and is a great opportunity.
The construction market will likely continue to be in a sorry state
except in Russia and Brazil, which should turn advantageous for Titan.
The earthmoving business still has life and is going to be good for
Titan as long as we take care of production. The other large event will
be the growth of the Titan Mining Service business with new locations in
Chile, Peru, South Africa, Australia and Eastern Canada. We are very
excited about building this business.
Titan will also announce some new acquisitions either before the end of
the year or shortly after. It is our goal to reach a run rate of $4 to
$4.5 billion before 2015. If you look at the last few years, you can see
this is a very doable goal, 2010 revenue was $866 million; 2011 revenue
was $1.487 billion; and 2012 revenue is going to be approximately $1.8
to $1.9 billion.
Now the goals I’ve set for 2013 for Titan management group is the
Revenue $2.4 to $2.7 billion
EBITDA $340 to $400 million
Cap Ex $72 million
R&D $11 million
This is the first time I’ve shown R&D. The reason is at Titan’s dealer
meeting in November everyone was shocked how many new tires and wheels
we have coming to market and I was asked if we would announce these
items ahead of time and I agreed. It is my goal not only to get to $4.5
billion before 2015, but bring new tire and wheel designs to the
farming, construction and mining industries that make the equipment
On an “I told you so” moment, last year I said farm income would set a
record this year. It has. I said Deere would set records. They did! I
also said construction would be soft. It is.
So what is in store for 2013? Farm income will be equal to last year.
Deere will beat 2012. Why? Deere’s Chairman is putting in his new team.
The wind is at his back and he is a real competitor. Plus his golf
handicap is lower than mine and no CEO from Deere in the last 40 years
has had a lower handicap than me.
I will answer questions about my goals on a conference call scheduled
for Thursday, December 6, 2012 at 4:30 ET. To participate in the call,
dial (800) 230-1766, International callers dial (612) 234-9959, five
minutes prior to the scheduled time. A replay will also be available
until December 13. To access, dial (800) 475-6701, International callers
dial (320) 365-3844, and enter code 273748.
Merry Christmas, Happy Hanukah and have a very safe, healthy and happy
Safe harbor statement:
This press release includes forward-looking statements that involve
risks and uncertainties, including risks as detailed in Titan
International, Inc.’s periodic filings with the Securities and Exchange
Commission, including the annual report on Form 10-K for the year ended
December 31, 2011. The company cautions that any forward-looking
statements included in this press release are subject to a number of
risks and uncertainties and the company undertakes no obligation to
publicly update or revise any forward-looking statements.
Titan International, Inc. (NYSE: TWI), a holding company, owns
subsidiaries that supply wheels, tires and assemblies for off-highway
equipment used in agricultural, earthmoving/construction and consumer
(including all terrain vehicles) applications. For more information,
Source: Titan International