New Contract Voted Down For Titan International

Sterne Agee has published a research report on Titan International Inc. (NYSE: TWI) after the new contract with Bryan, Freeport and Des Moines was voted down.

In the report, Sterne Agee writes "Following extended negotiations and a weeklong factory lockout instituted by TWI, local USW Unions voted on the company's “last, best and final” offer on 12/24/10. Des Moines accepted the offer, while Bryan and Freeport rejected the offer. However, local union leaders have apparently instructed members to return to work Sunday night. TWI has stated that returning workers will be working under the terms of the final offer and returning workers are aware of that. Although wages were generally frozen, other benefits including vacation time and health care benefits were reduced. At this time employees are set to return to work and are not planning to strike. It appears that negotiations are likely to resume in the near future, though TWI has stated that it has given its last offer. At this point, most information has come from union officials and news services and remains fluid. We are pleased to see work resume at TWI's main factories with a larger disruption averted for now at least. We believe the impact thus far likely will be very minimal given the reduced workflow scheduled around the holidays."

Sterne Agee maintains its Buy rating and $23 price target.

Titan International closed Friday at $19.51.