Quincy, IL – Titan International Inc. reports that sales increased 22 percent and net income increased 64 percent for recorded net sales of $493.6 million for the fourth quarter of 2012, as compared to fourth quarter 2011 sales of $402.9 million. For the year, net sales for 2012 were $1,820.7 million, as compared to $1,487.0 million at year-end 2011, an increase of 22.4 percent. Gross profit for fourth quarter 2012 was $51.5 million, or 10.4 percent of net sales, as compared to $58.5 million in 2011, or 14.5 percent of net sales. Gross profit for the year of 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, for 2011.
The increase in gross profit margin for the year was primarily due to productivity gains on the higher sales volumes and select price increases on certain products that exceeded the increase in raw material costs, as well as sales mix changes to larger products that generally carry higher margins.
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 slowdown 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.”
Source: Rubber World