Compared to the first six months of 2008, the Kidderminster, UK-based company reported revenue down from GBP233.4m (USD381.1m) to GBP149.1m (USD243.4m), trading profit of GBP17.2m (USD28m) falling to a loss of GBP3.9m (USD6.3m), profit from operations of GBP11.6m falling to a loss of GBP7.3m and profit before tax of GBP6.9m turning into a loss GBP11.4m. The profit after tax of GBP4.4m recorded in 2008 fell to a loss of GBP9.5m.
Revenue generated by construction, Titan’s biggest market, fell from GBP137.2m to GBP71.2m, along with downturns in all of its other markets. Each of its main geographical areas, including the UK, Europe, North America and South America, saw downturns in revenue, with Europe the hardest hit, falling from GBP138.3m last year to GBP90m in 2009.
Its wheels business saw revenue down from GBP98.6m to GBP67.7m, with revenue from the undercarriage division down from GBP137.1m to GBP82.8m.
“The impact on the wheels division has been particularly severe as we moved in a very short timescale from managing record production levels with escalating input prices to the need for a radical realignment in this division’s cost base to reflect much lower volumes,” said chief executive Mike Akers.
“The UK-based construction and mining wheel business has been heavily affected by reductions in orders for articulated dump trucks and wheeled loaders, with some customers cutting consumption to virtually zero.
“The market for mobile cranes has been less heavily affected, but has still seen significant reductions.”
Akers said Titan has had to take strong actions to ensure it is well-positioned when the market returns. This has included shedding 35% of its workforce across the business, curtailing all non-essential costs, reducing capital expenditure and restructuring debt. It has renegotiated its primary banking facilities to defer capital repayments until January 2011.
