Wheel manufacturer Titan anticipates 30% fall in sales

While the company said it expected its 2008 sales would be around £450 million and profits would be in-line with expectations, market conditions made it appropriate to comment on its prospects for 2009 and it would be withholding the 2008 shareholders’ dividend. December had seen a very significant decline in sales and manufacturing with volumes substantially lower than in previous periods and with constantly changing schedules, Titan said. It had reviewed the business during the first six weeks of 2009 and, in the face of market decline and “very limited forward visibility” it had reduced its sales forecast for 2009 to 30% below those of 2008. The statement went on: “In light of this reduction in sales volume, we continue our programme of scaling back material inputs, manufacturing, people and investment plans in order to re-align our cost base to reflect the more challenging markets our industry is experiencing. Fixed costs are being reduced throughout the group but care is being taken to preserve the group's resources and investment in engineering, quality and technical sales. Despite this tough backdrop it is worth noting that not all markets are equally affected and the Group is seeing some benefit from its product, market and geographic spread.” Titan Europe designs and manufactures wheels, undercarriage components and assemblies for tracked and wheeled off-road vehicles for the agricultural, construction, industrial and mining industries. It has facilities in UK, Italy, France, Germany, Spain, Turkey, USA, Brazil, Chile, Peru, Australia and China. The UK subsidiary is Titan Steel Wheels based near Kidderminster in the west midlands where 600 wheels a day are traditionally exported to the Americas, the Pacific and mainland Europe.