TITAN INTERNATIONAL, INC.'S CHAIRMAN UPDATE - MARKETS REMAIN STRONG

Rhea-AI Summary

Titan International, Inc. (NYSE: TWI) Chairman Morry Taylor addressed shareholders concerning stock price volatility, emphasizing that TWI's recent stock movements are not tied to the company's performance. He praised CEO Paul Reitz for robust production growth, stating that TWI's order books are full through 2022 and 2023 due to high prices for agricultural commodities. TWI anticipates over $200 million in adjusted EBITDA for 2022. Despite rising steel costs, TWI is managing supply effectively. The agriculture sector's strong demand is expected to benefit TWI significantly.

Positive

• TWI's order books are full through 2022 and 2023, indicating strong demand.
• Projected adjusted EBITDA over $200 million for 2022.
• Limited equipment inventory suggests future growth opportunities.
• Management effectively handling rising raw material costs.

Negative

• None.

CHICAGO, May 25, 2022 /PRNewswire/ -- Titan International, Inc. (NYSE: TWI) ("Titan" or "TWI") today released the following comments from its Chairman of the Board, Morry Taylor.

"The last few weeks I have had phone calls from shareholders wanting to better understand what is going on with TWI referencing the moves in our stock price.  The simple answer is TWI doesn't have anything to do with the daily movements in our stock price!  TWI's President and CEO, Paul Reitz and his team have done an excellent job growing production and keeping everything running worldwide through the last 18 months.  The results speak for themselves.  What a great job they have done.  I have never seen a market like this.  TWI's order books are full through 2022 and 2023 could be even better.  The reason for this was mentioned by Paul in his first quarter earnings release comments a few weeks ago. The price of corn, soybeans, wheat and cotton are all near historic highs, and there is no surplus out there, which should lead to farmers spending on equipment for quite a while.

"As major equipment companies have stated, they are going full out to build everything they can.  TWI's business should run hot for a while as there is no significant equipment inventory on dealer lots and any change to the situation appears to be a long way off.  The aftermarket for used farm equipment is also seeing similar things with dealer lots remaining bone dry with little to no used equipment.  This further helps Titan because some farmers cannot get new equipment, so they opt to repair their older equipment.  That means new tires, and if they want new larger, wider tires that means new wheels and tires. 

"As I mentioned earlier, I have never seen business like this and the opportunity for TWI continues to be great.  TWI has stated adjusted EBITDA should be over $200 million for the full year 2022.  I agree with that statement.  Everyone wants to know about supply chain issues and how they could impact Titan's business.  On the wheel side, steel is the most critical raw material. The price of steel has more than doubled in the past 18 months and has been volatile throughout, but Titan has maintained supply and managed the increased costs with pricing.  Tires are different because they also contain carbon black, natural rubber, and synthetic rubber and other raw materials.  Titan has more options, including substitutes in a pinch, if needed.  TWI's products do not have microchips in them, which is causing a lot of problems for equipment makers these days.  I believe TWI is sitting solid and is managing well in this volatile and tricky environment.

"One item I think I understand well is there is a shortage of food in parts of the world.  Many people are concerned about this, so that means there should be no slowdown in farm business.  Even politicians understand that the government doesn't grow food, so farmers will be very busy.  That is great for TWI given our strong position. 

"So, as you can see, TWI's future is the best it's ever been, in my opinion, and I want to thank all our shareholders, many of whom have been shareholders for a long time!  I am a very proud, old man who has been a part of this company for a lot of years. Paul Reitz and his team are going to bring TWI to new and better prosperity.  I could not be prouder of the entire Titan Team!"

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; and levels of operating efficiencies.  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.

FAQ

What did Titan International announce on May 25, 2022?

Titan International announced that their Chairman Morry Taylor addressed shareholders regarding stock price movements, emphasizing strong production and demand.

How does the current agricultural market impact Titan International?

High prices for corn, soybeans, wheat, and cotton are leading to increased spending on farm equipment, benefiting Titan International.

What is Titan International's projected adjusted EBITDA for 2022?

Titan International projects an adjusted EBITDA of over $200 million for the year 2022.

How is Titan managing supply chain issues?

Titan International is managing rising steel prices and maintaining supply without relying on microchips, which are a problem for other equipment manufacturers.

What factors contribute to Titan International's strong business outlook?

The ongoing demand for agricultural equipment and limited inventory on dealer lots contribute to Titan International's strong business outlook.