Titan International Inc. (NYSE: TWI):
Fourth quarter summary:
- Record sales for fourth quarter 2012 were $493.6 million, as compared to $402.9 million in the fourth quarter of 2011.
- Fourth quarter gross profit decreased to $51.5 million from $58.5 million in 2011.
- Fourth quarter loss from operations was ($1.1) million, compared to income of $19.5 million for last year’s fourth quarter.
- Cash and investments at December 31, 2012, was $189.1 million, compared to a balance of $134.9 million at September 30, 2012.
- Inventory at December 31, 2012, was $366.4 million, compared to $247.8 million balance at September 30, 2012.
Full year summary:
- Year-to-date sales for 2012 were the highest in company history at $1,820.7 million, as compared to $1,487.0 million in 2011, an improvement of 22.4 percent.
- Gross profit for 2012 was $294.1 million, or 16.2 percent of net sales, as compared to $232.1 million, or 15.6 percent of net sales in 2011. Year over year the gross profit increased 26.7 percent.
- Income from operations in the current year was $174.7 million, compared to $132.2 million in 2011, an increase of 32.2 percent.
- Net income for year-end 2012 was $95.6 million, compared to $58.2 million in 2011, an increase of 64.3 percent.
- Cash and investments at December 31, 2012, was $189.1 million, compared to the $129.2 million balance at December 31, 2011.
- Inventory at December 31, 2012, was $366.4 million, compared to the $190.9 million balance at December 31, 2011.
Statement of Chief Executive Officer:CEO and Chairman, Maurice Taylor commented, “This past year was a record year in every way. We added to our global footprint with the purchase of Titan Europe and Planet Group located in Perth, Australia. Both additions will expand our business opportunities in the agriculture and construction/earthmoving markets. The fourth quarter had two negative problems: One, the construction slow down in Europe and its effect on the newly acquired Titan Europe Business, and the extra costs due to the start up of the wheel facility resulting from the earthquake in Italy. Insurance claims should cover the cost of the damage sustained and we have seen a strengthening of the market for the steel track business.