WEST CHICAGO, Ill.,
Dec. 21, 2021 /PRNewswire/ -- Titan
International, Inc. (NYSE: TWI) ("Titan" or "TWI") today released
the following statement.
Morry Taylor, Chairman of the
Board, commented, "A few days ago, I released a message on TWI, the
market, and our stock. Since that time, multiple sources have
reported that Yokohama has offered
to buy Trelleborg's off-highway wheel business for $2 billion. I believe Trelleborg's wheel
business for 2021 will be somewhere around $1.4 billion in sales. Yokohama may face challenges with antitrust
laws because of the amount of business their operation in
India ships into Europe.
Looking at TWI within our Ag business, we are the market leader in
steel wheels across all the major markets. Within the Ag tire
business, the combined Titan and Goodyear share is number one in
South America, North America and Russia. In Europe, we
have a long-term plan to be a major player there as well. One
thing many people overlook is this -- over the past number of years
the majority of new Ag wheel and tire designs have come from
Titan. I believe that within fifteen years, the largest
selling Ag tire will be
Titan's LSW® tire/wheel
combination.
"In 2022, Titan anticipates global sales above $2 billion based on our annual plan approved by
the Titan Board. Think about that, Yokohama is proposing to buy a business for
$2 billion dollars with 2021 sales
well below that of Titan's. Considering the Yokohama/Trelleborg bid, that's a $2 billion price for a business that could be
number one in Europe, but nowhere
else. The world's largest Ag markets are in the U.S. and
Brazil and Titan is the leader in
those markets. Also, TWI has the manufacturing capacity to
expand without building additional facilities. If you apply the
same math to the $2 billion price
offered for Trelleborg, and reduce it by our net debt, that would
suggest a Titan share price above $24.
"It has taken 30 years for the politicians and some of the
leaders of the largest companies in the U.S. to realize that
chasing low wage countries for manufacturing is going to blow
up. Plus, the situation with China has become a big problem across a number
of areas. Now customers need to have supply chains for
wheels and tires that can support their factories in the countries
where they produce or sell their product. I have heard some
customers want at least half of their wheels and tires produced in
the U.S. There is no other domestic producer who has that
kind of capacity beyond Titan.
"I expect that there will be some further positive updates
regarding TWI after the first of the year. From myself and
all of us at Titan, we hope everyone has a very Merry Christmas and
a Happy New Year. Sorry if I offend anyone, but I am too old
to be Woke! Cheers!"
Safe Harbor Statement: This press release contains
forward-looking statements. These forward-looking statements are
covered by the safe harbor for "forward-looking statements"
provided by the Private Securities Litigation Reform Act of 1995.
The words "believe," "expect," "anticipate," "plan," "would,"
"could," "potential," "may," "will," and other similar expressions
are intended to identify forward-looking statements, which are
generally not historical in nature. These forward-looking
statements are based on our current expectations and beliefs
concerning future developments and their potential effect on us.
Although we believe the assumptions upon which these
forward-looking statements are based are reasonable, these
assumptions are subject to significant risks and uncertainties, and
are subject to change based on various factors, some of which are
beyond Titan International, Inc.'s control. As a result, any of
these assumptions could prove to be inaccurate and the
forward-looking statements based on these assumptions could be
incorrect. The matters discussed in these forward-looking
statements are subject to risks, uncertainties, and other factors
that could cause actual results and trends to differ materially
from those made, projected, or implied in or by the forward-looking
statements depending on a variety of uncertainties or other factors
including, but not limited to, the effect of the COVID-19 pandemic
on our operations and financial performance; the effect of a
recession on the Company and its customers and suppliers; changes
in the Company's end-user markets into which the Company sells its
products as a result of domestic and world economic or regulatory
influences or otherwise; changes in the marketplace, including new
products and pricing changes by the Company's competitors;
unfavorable outcomes of legal proceedings; the Company's ability to
comply with current or future regulations applicable to the
Company's business and the industry in which it competes or any
actions taken or orders issued by regulatory authorities;
availability and price of raw materials; levels of operating
efficiencies; the effects of the Company's indebtedness and its
compliance with the terms thereof; changes in the interest rate
environment and their effects on the Company's outstanding
indebtedness; unfavorable product liability and warranty claims;
actions of domestic and foreign governments, including the
imposition of additional tariffs; geopolitical and economic
uncertainties relating to the countries in which the Company
operates or does business; risks associated with acquisitions,
including difficulty in integrating operations and personnel,
disruption of ongoing business, and increased expenses; results of
investments; the effects of potential processes to explore various
strategic transactions, including potential dispositions;
fluctuations in currency translations; risks associated with
environmental laws and regulations; risks relating to our
manufacturing facilities, including that any of our material
facilities may become inoperable; risks relating to financial
reporting, internal controls, tax accounting, and information
systems; and the other risks and factors detailed in the Company's
periodic reports filed with the Securities and Exchange Commission,
including the disclosures under "Risk Factors" in those reports.
These forward-looking statements are made only as of the date
hereof. 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, whether as a
result of new information, changed circumstances or future events,
or for any other reason, except as required by law.
About Titan: Titan International, Inc. (NYSE: TWI) is a
leading global manufacturer of off-highway wheels, tires,
assemblies, and undercarriage products. Headquartered in
West Chicago, Illinois, the
company globally produces a broad range of products to meet the
specifications of original equipment manufacturers (OEMs) and
aftermarket customers in the agricultural,
earthmoving/construction, and consumer markets. For more
information, visit www.titan-intl.com.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/a-second-message-from-titan-international-incs-chairman-301449419.html
SOURCE Titan International, Inc.