By Stephen Nakrosis
Paul Reitz, president and chief executive of Titan International, said there are a number of reasons to be optimistic about 2025, including improved net farm income.
"There is growing support for an improvement in net farm income in 2025 driven by higher market prices for commodities, particularly corn, and an expectation of higher levels of government support to farmers," Reitz said.
The company also is expecting a higher proportion of revenue to be generated in the second half this year than is normally the case.
Titan makes and sells off-highway wheels, tires, assemblies and undercarriage products.
On farm income:
Money in farmers' pockets means there is a greater ability and willingness to reinvest those profits into capital equipment, Reitz said.
"Expectations for continued favorable conditions also drive capital investment and we have been pleased to see the positive impact the new administration has had on farmer sentiment," he added.
On Brazil:
Another factor lending optimism is the current market activity level in Brazil, according to Reitz.
"Demand in Brazil for the first quarter is expected to be up nicely in both our OE and Aftermarket channels, compared with a year ago, which is a positive signal that we have turned the corner in that geography, and history has shown us that the inflection point for the U.S. should not be too far behind."
On tariffs:
Reitz said Titan doesn't anticipate currently planned tariffs to be an issue for the company to navigate.
"However, I do think it is a mistake to place a tariff on raw steel without also implementing one on all steel-related products from the tariffed countries to close the loop for companies trying to avoid that tariff," he said.
"We have seen tariffs come and go over the years and nobody can predict exactly where tariff policies will be in the future, but I believe in the long-run tariffs should be a net positive for Titan," Reitz added.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
February 26, 2025 18:47 ET (23:47 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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