Titan sees return to profit in first half of year
REVENUES at wheel manufacturer Titan Europe have climbed in the first half of 2010, it announced today.
Revenues for the six-month period ending June 30 were £166m, up from £149m in the same period last year.
Its trading profit rose year-on-year to £3.4m compared with a loss of £3.9m.
Kidderminster-based Titan is principally a manufacturer of wheels and undercarriage track assemblies for off-highway vehicles in industries such as construction, agricultural and mining.
In its chief executive’s report, it said: “The industries which Titan Europe supplies have all seen major volume reductions during the recent recession and these…..led to an overall volume fall for the group of 47% between 2008 and 2009.
“The group responded with a major restructuring programme including extensive labour reduction, both permanent, which was fully accounted for in 2009, and temporary lay off utilising government sponsored schemes.
“We continue to utilise these temporary schemes, but this is at a level below our original 2010 expectations due to the increases in volumes.
“In line with our global strategy, capital expenditure remains focused on key projects, such as the new undercarriage facility in China and the resizing of our western European manufacturing facilities to reflect geographic changes in volumes and product mix.
“As a result of its restructuring and investment strategy, the group has a demonstrable ability to benefit from increases in volume and the board believes the business is well placed to benefit from any further upturns in its markets.”
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