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’sLSW® 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.
