TWI was hammered in AH. They reported a huge miss. This could hurt RAVN and/or TITN, but it shouldn't. Every issue seems specific to TWI.
CEO and Chairman, Maurice Taylor commented, “This past year was a record year in every way. We added to our global footprint with the purchase of Titan Europe and Planet Group located in Perth, Australia. Both additions will expand our business opportunities in the agriculture and construction/earthmoving markets. The fourth quarter had two negative problems: One, the construction slow down in Europe and its effect on the newly acquired Titan Europe Business, and the extra costs due to the start up of the wheel facility resulting from the earthquake in Italy. Insurance claims should cover the cost of the damage sustained and we have seen a strengthening of the market for the steel track business.
“One of the biggest problems in the quarter was in the performance of the three U.S. tire plants. I believe most of this had to do with the unionized work force due to the fact that both Freeport and Bryan have been working for the past two years under a best and final proposed contract. The Company and the Union have been negotiating the terms of a new CBA since September 2012. The Union is in the process of reviewing the proposed CBA. The Union has told Titan that they expect all three Titan Tire plants to vote on the new four year proposed contract the week of March 4, 2013. Titan believes this proposed contract is fair to our employees and the company.
“The farm business for 2013 will continue to be strong as is mining. The construction side is starting to show a little strength in the United States. The management team at Titan is building a strong and growing company for our employees and stockholders.”
This last paragraph is promising for TITN...
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