Titan International Inc (TWI)

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Titan to Cut Full-Year Guidance on Aftermarket Effect

3:28 PM ET 6/7/13 | Dow Jones
By Nathalie Tadena

Titan International Inc. (TWI) said it is experiencing a "bump in the road" as original equipment manufacturers in the farm and construction industries, as well as mining companies, have dropped millions of dollars in tires into the aftermarket over the past couple of months.

The tire maker's shares fell 8.6% to $20.29 in recent trading as the company said it plans to lower the full-year guidance it gave in December, but first needs to find out approximately how much mining companies will be lowering their inventories. The stock has fallen 6.2% since the start of the year.

Chairman and Chief Executive Maurice Taylor noted that mining companies had built up inventories greater than a year and are now releasing these tires. He noted the selling price of the company's products is going down because material costs are also falling.

"The entire volume of tires will have an aftermarket effect for a few months before things get back to normal," he said. "We feel that this is a bump in the road as we have experienced this in the past."

The company also confirmed it has entered into negotiations with Cordiant about a potential investment in Russia. Titan, which said it is looking to increase its presence in Russia and the Commonwealth of Independent States, said it hopes to successfully complete these discussions in the near future.

Write to Nathalie Tadena at [e-mail]

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> Dow Jones Newswires

June 07, 2013 15:28 ET (19:28 GMT)

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