(Reuters) - Tire maker Titan International Inc (TWI.N) posted a better-than-expected adjusted quarterly profit, and forecast a robust 2011 as it sees more orders from agricultural and earthmoving markets, sending its shares up as much as 13 percent to a year high.
Agricultural segment accounts for about 76 percent of Titan’s revenue, while earthmoving/construction segment contributes 22 percent.
“We’re seeing orders like we haven’t seen in a long time (in the farm segment). When you look at the earthmover and heavier construction, that is also catching fire,” Chief Executive Maurice Taylor Jr. said on a conference call with analysts.
In December, Titan agreed to buy Goodyear Tire & Rubber Co’s GT.N European and Latin American farm tire businesses.
The Quincy, Illinois-based company said it can grow the revenue of these businesses to between $400-$600 million per year in the next three years.
The company expects total revenue of $950 million-$1.1 billion in 2011, helped by these acquisitions.
Analysts expect 2011 revenue of $1.02 billion, according to Thomson Reuters I/B/E/S.
Titan, which has so far announced two price increases in response to rising commodity prices, said it expects the move to drive overall revenue in 2011.
For the fourth quarter, the company posted a loss of $10.3 million, or 29 cents a share, compared with a loss of $26.5 million, or 76 cents a share a year ago.
Excluding items, it earned 16 cents a share.
Revenue rose 59 percent to $232.7 million. Sales from agricultural segment rose 20 percent, while the contribution from earthmoving and construction segment was up by 32 percent.
Shares of the company were up 8 percent at $21.70 on Thursday morning on the New York Stock Exchange.
They have gained 42 percent in value since October 28 when the company posted strong third-quarter results.
Reporting by Soham Chatterjee and Divya Sharma; Editing by Vyas Mohan