CHICAGO, June 13,
2022 /PRNewswire/ -- Titan International, Inc. (NYSE:
TWI) ("Titan" or "TWI") today released the following business
update.
Last week, Titan's stockholders voted to support the Board's
recommendations, with all ballot items receiving the majority of
the proxy votes. Morry Taylor, TWI's
Chairman of the Board of Directors, stated, "I appreciate the
continued support from our stockholders and the recognition of the
Company's success. I believe that our stockholders understand
the progress we have made over the last several years. We
will continue to engage and listen to our investors to get various
viewpoints. As always, we invite anyone to come visit us at
any of our facilities."
Morry Taylor concluded, "the
Board met after the annual stockholders' meeting last week, and we
are all struck by the strides that Titan has made over the last
several years, but even more so, the outlook is getting stronger,
as indicated by this release. I feel like there is nothing
but bright skies ahead for TWI."
David Martin, Senior Vice
President and Chief Financial Officer, commented, "the business
climate continues to be strong for Titan, and our financial
performance in the second quarter has exceeded expectations, and
the outlook for the remainder of the year continues to be
positive. As a result of our strong performance, it is
important to update investors prior to the release of our second
quarter earnings expected to be released in early August, that we
are exceeding expectations. At this point, we expect second
quarter sales to be at or exceeding the level of our first quarter
sales, while our margins are expected to be stronger. For the
full year, we now anticipate sales to be around $2.2 billion, with adjusted EBITDA between
$225 million and $240 million, which will be our strongest
performance in our history."
Paul Reitz, President and Chief
Executive Officer further commented, "not only are we seeing
strength in sales, but we are achieving solid flow through to our
margins and bottom line, based on improved plant productivity and
efficiency, and healthy product mix. Our Titan team continues
to manage our supply chain effectively along with handling the
unprecedented inflationary environment well. We believe that
strength of our end-markets and our performance has a solid runway
in front of us for the next couple of years, and this belief is
supported by the numerous market factors in place, including high
farm commodity prices, low equipment inventory levels, both new and
used, and strong farmer balance sheets. Most importantly, the
Ag sector should hold up despite the inflationary environment
surrounding us, based on these and other
fundamentals."
In addition, during the second quarter of 2022, the Company will
report approximately $22 million in
other income for non-income tax credits in Brazil, based on the formal approval from the
Brazilian government this quarter. This matter relates to
previously paid indirect taxes that were subject to successful
legal claims, which was previously disclosed in the Company's first
quarter 2022 10-Q. The cash flow from these tax credits is
expected to be realized over the next two years. This
positive cash flow will enable the Company to continue to reduce
debt over time, and fund ongoing critical investments to advance
the business. An additional $10
million in tax credits are still pending formal approval by
government authorities and will be recognized when such approval is
received. These tax credits will be subject to income taxes
in Brazil. Based on the non-recurring nature of these
credits, the total is not included in the updated adjusted EBITDA
full year guidance.
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.
These risk factors include, but are 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; availability and price of raw materials;
availability and price of supply chain logistics and freight;
levels of operating efficiencies; and geopolitical and economic
uncertainties relating to the countries in which the Company
operates or does business. Additional risks and other factors
that could cause actual results or events to differ materially from
those contemplated in this release are detailed in the Company's
reports on Forms 10-K and 10-Q filed with the Securities and
Exchange Commission, especially 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.
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SOURCE Titan International, Inc.