Titan stock falls after shareholder earnings report

Posted: Feb. 26, 2013 7:00 pm Updated: Mar. 19, 2013 7:09 pm


Titan International's stock fell 15 percent on Tuesday after the company reported 7-cent earnings per share for the fourth quarter.

Company CEO and Chairman Maurice Taylor said 2012 "was a record year in every way," but the tire and wheel maker was affected by a construction slowdown at Titan Europe PLC and extra costs after an earthquake hit a wheel facility in Italy during the final quarter.

"Insurance claims should cover the cost of the damage sustained and we have seen a strengthening of the market for the steel track business," Taylor said in a release.

The 7-cent earnings report fell well short of analysts predictions of 47 to 54 cents per share. That led Titan stock (NYSE: TWI) to fall to $21.17 in Tuesday trading, after closing Monday at $24.96. Many analysts continue to have a buy rating for the stock.

Titan had net sales of $493.6 million for the fourth quarter, up from $402.9 million in the fourth quarter 2011. For the year, sales were $1.82 billion, compared to $1.487 billion in 2011. The company has continued to set new records in sales and revenue during recent years.

Taylor said farm business for 2013 will be strong, as will mining.

Titan sells tires, wheels and wheel assemblies for farm, mining and off-road uses.