A MESSAGE FROM TITAN INTERNATIONAL, INC.'S CHAIRMAN
Titan International, Inc. (TWI) announced positive developments during a recent earnings call. Despite a strike at major customer John Deere, TWI managed to sustain supply and even increase sales to other clients, leading to expectations of over $130 million in adjusted EBITDA for 2021. The company notes its share price is undervalued compared to expected earnings growth in 2022. Titan also emphasized its leading position in manufacturing wheels and tires for agriculture and construction, hinting at potential acquisitions and a recovery in the U.S. supply chain.
- TWI expects adjusted EBITDA to exceed $130 million for 2021.
- Maintained supply to John Deere during its strike, benefiting other customers.
- Strong expected earnings growth in 2022.
- Positioned well with the potential recovery of U.S. supply chains.
- TWI's share price remains below expected levels despite positive financial outlook.
WEST CHICAGO, Ill., Dec. 9, 2021 /PRNewswire/ -- Titan International, Inc. (NYSE: TWI) ("Titan" or "TWI") today released the following statement.
Morry Taylor, Chairman of the Board, commented, "This past quarter on our earnings call a question was asked in reference to John Deere's strike and how it would affect Titan. John Deere is one of TWI's largest customers. During the strike TWI kept John Deere supplied with wheels and tires, but while the strike was taking place (it is now over), Titan was able to supply more product to our other customers. So the strike did not have any negative, only positive, financial effect on Titan. TWI is in its best financial shape in recent years. Everything is moving upward and our adjusted EBITDA is expected to be over
"The only area that is lagging is TWI's share price which remains below where it should be given that we expect our earnings to reach an even higher level in 2022. As one of our Board members stated, TWI should be much higher based on our results. If investors like farming, home building and construction, they have got to love TWI. I happen to agree with this statement. In the near future, Paul Reitz will be setting up more meetings with investors going through what the future of TWI looks like. I should also mention that even though TWI is the world's largest manufacturer of wheels for agriculture and construction, we also have the greatest capacity of Ag tires in the world. There are potential acquisitions that could be interesting for us, so it is a very exciting time at Titan heading into 2022.
"One thing you can always count on is the U.S. Farmers. If corn is over
"We welcome visitors at our facilities and our employees take great pride in showing off how we make our products. So if you're going to be in the area of one of our tire or wheel facilities, call us at 1-800-262-3397 and arrange a tour. Our U.S. facilities are located in Quincy, Illinois, Des Moines, Iowa, Freeport, Illinois, Bryan, Ohio and Union City, Tennessee.
"I wish you all good health and safe travels over the holidays."
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.
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SOURCE Titan International, Inc.
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