Don’t tell Morry Taylor that we are in a recession. It seems that, like Rush Limbaugh, he is refusing to participate. According to a recent press release/news report, Titan will end 2009 with $920M to $1 Billion in overall revenue. That is not too shabby.
He’s also increased his revenue target to $1.175 to $1.35 billion next year. You can’t say he is not the eternal optimist. Blow his plant up, Morry won’t care. Shut some mines down, Morry won’t blink. Heck, let commodity prices fall deep into the earth, Morry won’t worry.
Mr. Taylor continues to see the Ag and Mining sectors growing next year. Unless something drastic happens, I see a contraction in most sectors of the economy. Now, I don’t have the benefit of Titan’s internal numbers, but I see where he can make a profit.
If raw material prices continue to fall, and the job market continues to trend downward, he’s in an excellent spot to command from. Completion of their Giant Tire project will take a drag off the balance sheet next year. Labor will be in a tight spot, should they try to renegotiate their contract. In a normal economy, I would say that Titan is positioned to make a massive profit next year.
The only problem is this: You’ve got OEM’s like Case and Caterpillar with reduced orders. Caterpillar recently auctioned off a good portion of their tires in NC, and the Midwest. There will be increased pressure from the mines, who will be trying to squeeze every last dollar out of their contracts, and there will be more mine closures. Chances are, the existing equipment will be liquidated, along with tire stocks. This could well alleviate some serious supply problems.
I don’t see huge profits in Titan’s future next year. Then again, I’m not Morry Taylor. You have to give credit to a guy that believes this wholeheartedly in his company, and his own leadership.
If Titan weathers this storm well, they could come out as one of the few winners on Wall Street next year. Here’s hoping 2009 is a great year for all of us.
We’ll keep you up to date with latest news. Until next time, I’ll be…
Signing off…
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