Titan reports 50% revenue growth
STEEL wheels maker Titan has reported strong output and revenues up more the 50% in an upbeat trading statement.
The Kidderminster based group said in an update released ahead of its AGM today that the past five months have seen strong performance across its operating divisions.
Investors reacted well to the news with shares up almost 10% in early trading.
The report said: “All of our markets have remained strong. We are continuing to increase output in many of our factories to meet growing levels of demand. In the period to the end of May 2011, revenues were more than 50% ahead of the comparable period in 2010.”
Sales to the Construction sector were ahead by 40%, it said, with particularly strong growth in wheels mostly into Europe and undercarriages to the Far East, Europe and the USA.
The acquisition earlier this year of all the remaining shares of its Turkish joint venture Titan Jantsa in a deal worth £7.5m, was paying off, said Titan.
“Sales to Agriculture rose by 49% with wheels supplied from Italy, France and our Turkish factory mostly into the European Market which is performing strongly. “
Mining has by 115% and now represents approximately 25% of total sales, the company said.
The company statement continued: “As planned, trading margins are improving due to an effective sales price policy and volume impact leverage on fixed costs. We continue to have aggressive programmes for cost reduction through optimising manufacturing process and location, make/buy analysis and “Lean” manufacturing techniques.
“We have benefited from our close working relationship with our principal Italian banks which has given us the flexibility to manage the current rapid expansion phase of the business, including the recently announced acquisition of our Turkish operations.”
The company was upbeat about future prospects, saying: “The board continues to see substantial opportunities for growth in its target markets. An expected solid performance in 2011 provides an excellent platform for further development. The directors anticipate the full year 2011 to be ahead of current market forecasts.”
