Third quarter highlights:

• Sales for third quarter 2014 were $449.6 million down 9.6%, compared to $497.5 million in the third quarter of 2013.
• Gross profit for the third quarter of 2014 was $45.3 million, or 10.1% of net sales, compared to $62.5 million, or 12.6% of net sales for the third quarter of 2013.
• Loss from operations for the third quarter of 2014, was $(2.5) million, or (0.6)% of net sales, compared to income of $17.1 million, or 3.4% of net sales, in 2013.
• Adjusted net income (loss) for the third quarter was $(9.1) million, compared to $8.1 million in the third quarter of last year (see appendix below).
• Adjusted basic earnings per share for the third quarter 2014 and 2013 were $(0.17) and $0.15 respectively, and adjusted fully diluted earnings per share were $(0.17) and $0.15 respectively (see appendix below).

Statement of Chief Executive Officer:

CEO and chairman, Maurice Taylor comments, "Third quarter revenue results were down 10% from 2013. The drop in demand for large agriculture equipment sales and larger products used in the mining industry had a significant impact on our business. In addition, as raw material prices continue to fall, price reductions were passed to customers. Steel and natural rubber are the largest raw material components in our business. Prices for these two commodities have been dropping steadily with natural rubber reaching a 5-year low. The higher SG&A expenses were primarily the result of approximately $4 million of SG&A expenses at the recently acquired facility in Russia. As a result of the strength in the U.S. dollar, Titan incurred approximately a $13.3 million loss in foreign currency, included in other income (loss) in the third quarter primarily due to the translation of intercompany loans on certain foreign subsidiaries dominated in currencies other than their functional currencies.

"As for our outlook on the markets ahead, we believe large agriculture equipment sales will be down at least through 2015 in North America. South America will remain relatively flat however, we have expanded our product offering in Brazil to cover more large agriculture and medium size construction. Europe will remain stable as the challenges in this region remain. ITM's track business in Europe is maintaining and they have positive news from new aftermarket test results that we believe could increase their business in 2015. In Russia, we expect to reduce the employee count from 2,300 to 1,000 this year in line with current demand. We are updating molds and equipment into the Russia tire facility to improve performance and efficiency. This region will slowly improve in the quarters ahead.

"We are taking steps to improve the business despite these challenging markets.  We continue with our strategy to realign the Bryan, Ohio, facility to current market conditions and improve profitability in the earthmoving/construction segment. The union is in partnership with Titan to achieve this goal in the near future. We are on schedule with the reclamation project in Canada and look forward to launching operations in the latter part of 2015. We have received some new orders for Titan's 58x63 loader tires and wheels and we will have our new 45R/56.3 loader tires in the field by the first quarter.

"Titan will continue to strengthen our path toward growth and improved performance as we enter into 2015 with cost reductions and new product offerings, including the LSW wheel/tire campaign."

Financial Summary:

Sales:  Net sales for the quarter ended September 30, 2014, were $449.6 million compared to $497.5 million in 2013, a decrease of 10%. Sales experienced reductions in volume of 8% and price/mix of 7% as a consequence of decreased demand for larger agricultural products, and Titan products used in the mining industry. The decrease in net sales was partially offset by the inclusion of the recently acquired Voltyre-Prom business which recorded $24.2 million in sales, and increased sales 5%.

Net sales for the nine months ended September 30, 2014, were $1,512.3 million compared to $1,669.2 million in 2013, a decrease of 9%. Sales decreased 12% as the result of price/mix reductions driven from decreased demand for Titan products used in the mining industry and larger agricultural products. In addition, overall volume decreased 2%. The decrease in net sales was partially offset by the inclusion of the recently acquired Voltyre-Prom business which recorded$78.8 million in sales, and increased sales 5%.

Gross profit:  Gross profit for the third quarter of 2014 was $45.3 million, or 10.1% of net sales, compared to $62.5 million, or 12.6% of net sales for the third quarter of 2013. Gross profit and income from operations decreased primarily as a result of a significant decrease in demand of larger agricultural products, which generally have higher margins. Decreased demand for Titan products used in the mining industry also had a negative impact on gross profit. Gross profit for the nine months ended September 30, 2014, was $122.4 million or 8.1% of net sales, compared to $245.9 million, or 14.7% of net sales in 2013 

Warranty Expense:  The provision for warranty liability was $13.4 million at September 30, 2014 or 0.9% of sales compared to $35.1 million at September 30, 2013 or 2.1%of sales.

Selling, general and administrative expenses:  Selling, general and administrative (SG&A) expenses for the third quarter of 2014 were $41.3 million, or 9.2% of net sales, compared to $38.7 million, or 7.8% of net sales, for 2013. Selling, general and administrative (SG&A) expenses for the nine months ended September 30, 2014 were $133.1 million, or 8.8% of net sales, compared to $124.8 million, or 7.5% of net sales, for 2013. The higher SG&A expenses were primarily the result of approximately $14 million of SG&A expenses year to date at recently acquired facilities, offset by a decrease in incentive compensation.

Income (loss) from operations:   Loss from operations for the third quarter of 2014, was $(2.5) million, or (0.6)% of net sales, compared to income of $17.1 million, or 3.4% of net sales, in 2013. This decrease was the net result of the items previously discussed.

Interest expense:  Interest expense was $9.0 million and $12.4 million for the quarters ended September 30, 2014, and 2013, respectively. Year-to-date interest expense was $27.1 million and $35.9 million for the nine months ended September 30, 2014, and 2013, respectively. Interest expense for the first nine months of 2014 decreased primarily as a result of the repurchase of the 7.875% senior secured notes in the fourth quarter of 2013, and decreased debt balances at Titan Europe.

Earnings (loss) per share:  For the quarters ended September 30, 2014 and 2013, basic earnings (loss) per share were$(.17) and $.15, respectively, and diluted earnings per share were $(.17) and $.15, respectively.  For the nine months ended September 30, 2014 and 2013, basic earnings (loss) per share were $(.51) and $.96, respectively, and diluted earnings (loss) per share were $(.51) and $.89, respectively. On an adjusted basis (see Appendix below) basic earnings per share for the quarter ended September 30, 2014 and 2013 were $(0.17) and $0.15, respectively, and diluted earnings (loss) per share were $(0.17) and $0.15 respectively. For the nine months ended September 30, 2014 and 2013, basic earnings (loss) per share were $(0.10) and $0.85, respectively, and diluted earnings (loss) per share were $(0.10) and $0.79, respectively.

Capital expenditures: Titan's capital expenditures were $15.4 million for the third quarter of 2014 and $18.9 million in the third quarter 2013. Year-to-date expenditures were $46.3 million for 2014 compared to $55.0 million for 2013.

Debt balance:  Total long term debt balance was $501.3 million at September 30, 2014 compared to $497.7 million onDecember 31, 2013. Short-term debt balance was $24.8 million at September 30, 2014, and $75.1 million at December 31, 2013.  Net debt (debt less cash and investments) was $345.8 million at September 30, 2014, compared to $383.4 million at December 31, 2013.

Equity balance:  The company's equity was $709.4 million at September 30, 2014, compared to $798.0 million atDecember 31, 2013.