Wednesday, February 27, 2013

France-Bashing Titan Falls 16% After Earnings Disappoint

APNot a Francophile

Last week, Titan International (TWI) CEO Maurice Taylor made international headlines when he, essentially, sent a letter to the French government to tell them their citizens were lazy.

Maybe Taylor should have been keeping a closer eye on things here at home. Last night, Titan International unveiled earnings that fell far below Wall Street expectations, with fourth-quarter profit of 9 cents a share while consensus estimates called for 47 cents, according to FactSet. Revenue of $494 million was also well below the $560 million expected.

Investors are having their say, with tire company Titan International’s stock down 16% today.

As for Taylor’s charges at the French worker, Quartz did some digging that may put some of the stereotypes in perspective:

But behind the catty exchange lies a curious fact. At $57.7 worth of output per hour,�French worker productivity is actually among Europe�s higher. That�s compared with $55.8 in Germany and $47.2 in the United Kingdom, according to�OECD data for 2011.

As Ryan Chittum points out, US worker output is about $60 an hour. He also notes that French tiremaker Michelin is “20 times bigger and 35 times more profitable” than Titan International.

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