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Titan International Chairman and CEO Maurice M. Taylor Jr. has presented his goals for the company in 2009, including a look at 2008’s results.
In December 2007, Taylor stated that Titan should end 2008 with $920 million to $1 billion in revenue; at this point he believes Titan’s 2008’s revenues could top $1 billion.
“It has been a remarkable year for Titan and its employees,” notes Taylor. “No one outside of this corporation will ever know how great this team of Titan employees are,” he adds.
“In the past two months I’ve visited the oil sands, mines, farm equipment dealers, farmers and executives of major farm original equipment manufacturers,” Taylor continues. “It’s hard to believe with all the gloom on Wall Street, television and clueless politicians’ commentary that 2009 should be a great year, but that is what I see.”
Taylor sets Titan’s sales revenue goal for 2009 at $1.17 billion to $1.3 billion. While this is a large spread, he says, material cost is expected to be down in the second quarter of 2009, thus lowering pricing. Material cost for the second half of the year could be more unpredictable and may possibly require higher pricing.
“If you were to base this on unit sales, I believe 2009 would show a 20 percent to 30 percent growth over 2008,” says Taylor. “Titan’s group presidents Ron Schildt and Bill Campbell will base the year on these goals, all the while striving to maximize them.”
The company’s targeted performance levels “will require better efficiency at the company’s tire facilities, which should happen as a result of the completion of the super giant tire project realignment. Capital expense is also expected to drop after first quarter 2009 due to the completion of the super giant tire project,” he forecasts.
Taylor has set Titan’s goal for positive operating cash flow at over $100 million in 2009.
“I appreciate the concern over lower commodity prices and its affect on business, but if you look at these commodity prices, they are still higher than in 2006. So be merry, a New Year is coming,” says Taylor.
Titan International, Inc. is a holding company owning 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, visit www.titan-intl.com.
