SUBSIDIARY GUARANTOR FINANCIAL INFORMATION - 5.625% CONVERTIBLE NOTES

The Company's 5.625% convertible senior subordinated notes ("convertible notes") are guaranteed by the following 100% owned subsidiaries of the Company: Titan Tire Corporation, Titan Tire Corporation of Bryan, Titan Tire Corporation of Freeport, Titan Tire Corporation of Texas, Titan Wheel Corporation of Illinois, and Titan Wheel Corporation of Virginia. The note guarantees are full and unconditional, joint and several obligations of the guarantors. The guarantees of the guarantor subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. The following condensed consolidating financial statements are presented using the equity method of accounting. Certain sales & marketing expenses recorded by non-guarantor subsidiaries have not been allocated to the guarantor subsidiaries.



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Three Months Ended September 30, 2012
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	311,422	$	93,297		$	—		$	404,719
Cost of sales	253			246,275		91,030			—			337,558
Gross profit (loss)	(253		)	65,147		2,267			—			67,161
Selling, general and administrative expenses	(9,013		)	40,635		(6,125		)	—			25,497
Research and development expenses	155			1,604		—			—			1,759
Royalty expense	—			1,778		1,961			—			3,739
Income from operations	8,605			21,130		6,431			—			36,166
Interest expense	(6,012		)	—		(175		)	—			(6,187		)
Other income	1,163			364		912			—			2,439
Income before income taxes	3,756			21,494		7,168			—			32,418
Provision (benefit) for income taxes	6,329			7,398		(138		)	—			13,589
Equity in earnings of subsidiaries	21,402			—		5,420			(26,822		)	—
Net income (loss)	18,829			14,096		12,726			(26,822		)	18,829
Net loss noncontrolling interests	—			—		—			(750		)	(750		)
Net income (loss) attributable to Titan	$	18,829		$	14,096	$	12,726		$	(26,072	)	$	19,579



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Three Months Ended September 30, 2011
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	299,695	$	99,110		$	—		$	398,805
Cost of sales	380			255,509		89,922			—			345,811
Gross profit (loss)	(380		)	44,186		9,188			—			52,994
Selling, general and administrative expenses	(4,443		)	2,467		10,524			—			8,548
Research and development expenses	—			796		—			—			796
Royalty expense	—			1,620		643			—			2,263
Income (loss) from operations	4,063			39,303		(1,979		)	—			41,387
Interest expense	(6,114		)	—		(502		)	—			(6,616		)
Other income (expense)	(552		)	5		(9		)	—			(556		)
Income (loss) before income taxes	(2,603		)	39,308		(2,490		)	—			34,215
Provision (benefit) for income taxes	(988		)	14,605		(927		)	—			12,690
Equity in earnings of subsidiaries	23,140			—		—			(23,140		)	—
Net income (loss)	21,525			24,703		(1,563		)	(23,140		)	21,525
Net income noncontrolling interests	—			—		—			362			362
Net income (loss) attributable to Titan	$	21,525		$	24,703	$	(1,563	)	$	(23,502	)	$	21,163



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Nine Months Ended September 30, 2012
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	1,055,586	$	271,454		$	—		$	1,327,040
Cost of sales	812			828,935		254,683			—			1,084,430
Gross profit (loss)	(812		)	226,651		16,771			—			242,610
Selling, general and administrative expenses	4,970			71,372		3,400			—			79,742
Research and development expenses	327			3,983		146			—			4,456
Royalty expense	—			5,250		3,490			—			8,740
Supply agreement termination income	—			—		(26,134		)	—			(26,134		)
Income (loss) from operations	(6,109		)	146,046		35,869			—			175,806
Interest expense	(18,119		)	—		(580		)	—			(18,699		)
Other income	3,620			1,174		1,369			—			6,163
Income (loss) before income taxes	(20,608		)	147,220		36,658			—			163,270
Provision for income taxes	1,261			51,311		12,150			—			64,722
Equity in earnings of subsidiaries	120,417			—		24,242			(144,659		)	—
Net income (loss)	98,548			95,909		48,750			(144,659		)	98,548
Net loss noncontrolling interests	—			—		—			(506		)	(506		)
Net income (loss) attributable to Titan	$	98,548		$	95,909	$	48,750		$	(144,153	)	$	99,054



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Nine Months Ended September 30, 2011
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	890,916		$	193,165		$	—		$	1,084,081
Cost of sales	1,282			733,379			175,820			—			910,481
Gross profit (loss)	(1,282		)	157,537			17,345			—			173,600
Selling, general and administrative expenses	15,513			7,654			27,247			—			50,414
Research and development expenses	4			2,989			—			—			2,993
Royalty expense	—			6,304			1,226			—			7,530
Income (loss) from operations	(16,799		)	140,590			(11,128		)	—			112,663
Interest expense	(18,426		)	—			(619		)	—			(19,045		)
Noncash convertible debt conversion charge	(16,135		)	—			—			—			(16,135		)
Other income (expense)	1,644			(236		)	499			—			1,907
Income (loss) before income taxes	(49,716		)	140,354			(11,248		)	—			79,390
Provision (benefit) for income taxes	(12,424		)	51,931			(4,162		)	—			35,345
Equity in earnings of subsidiaries	81,337			—			—			(81,337		)	—
Net income (loss)	44,045			88,423			(7,086		)	(81,337		)	44,045
Net income noncontrolling interests	—			—			—			354			354
Net income (loss) attributable to Titan	$	44,045		$	88,423		$	(7,086	)	$	(81,691	)	$	43,691



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income For the Three Months Ended September 30, 2012
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	18,829		$	14,096	$	12,726		$	(26,822	)	$	18,829
Unrealized gain (loss) on investments, net of tax	(353		)	—		(353		)	353			(353		)
Currency translation adjustment, net	(1,247		)	—		(1,247		)	1,247			(1,247		)
Pension liability adjustments, net of tax	836			790		46			(836		)	836
Comprehensive income (loss)	18,065			14,886		11,172			(26,058		)	18,065
Net comprehensive loss attributable to noncontrolling interests	—			—		—			(750		)	(750		)
Comprehensive income (loss) attributable to Titan	$	18,065		$	14,886	$	11,172		$	(25,308	)	$	18,815



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income For the Three Months Ended September 30, 2011
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	21,525		$	24,703	$	(1,563	)	$	(23,140	)	$	21,525
Unrealized gain (loss) on investments, net of tax	(11,433		)	—		(11,433		)	11,433			(11,433		)
Currency translation adjustment, net	(12,861		)	—		(12,861		)	12,861			(12,861		)
Pension liability adjustments, net of tax	594			554		40			(594		)	594
Comprehensive income (loss)	(2,175		)	25,257		(25,817		)	560			(2,175		)
Net comprehensive income attributable to noncontrolling interests	—			—		—			362			362
Comprehensive income (loss) attributable to Titan	$	(2,175	)	$	25,257	$	(25,817	)	$	198		$	(2,537	)



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income For the Nine Months Ended September 30, 2012
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	98,548		$	95,909	$	48,750		$	(144,659	)	$	98,548
Unrealized gain (loss) on investments, net of tax	(16		)	—		(16		)	16			(16		)
Currency translation adjustment, net	(5,816		)	—		(5,816		)	5,816			(5,816		)
Pension liability adjustments, net of tax	2,508			2,370		138			(2,508		)	2,508
Comprehensive income (loss)	95,224			98,279		43,056			(141,335		)	95,224
Net comprehensive loss attributable to noncontrolling interests	—			—		—			(506		)	(506		)
Comprehensive income (loss) attributable to Titan	$	95,224		$	98,279	$	43,056		$	(140,829	)	$	95,730



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income For the Nine Months Ended September 30, 2011
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	44,045		$	88,423	$	(7,086	)	$	(81,337	)	$	44,045
Unrealized gain (loss) on investments, net of tax	2,219			—		2,219			(2,219		)	2,219
Currency translation adjustment, net	(9,929		)	—		(9,929		)	9,929			(9,929		)
Pension liability adjustments, net of tax	1,779			1,659		120			(1,779		)	1,779
Comprehensive income (loss)	38,114			90,082		(14,676		)	(75,406		)	38,114
Net comprehensive income attributable to noncontrolling interests	—			—		—			354			354
Comprehensive income (loss) attributable to Titan	$	38,114		$	90,082	$	(14,676	)	$	(75,760	)	$	37,760



(Amounts in thousands)	Consolidating Condensed Balance Sheets September 30, 2012
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	109,913		$	21	$	24,956		$	—		$	134,890
Accounts receivable	—			168,326		60,049			—			228,375
Inventories	—			178,719		69,059			—			247,778
Prepaid and other current assets	43,318			20,990		13,654			—			77,962
Total current assets	153,231			368,056		167,718			—			689,005
Property, plant and equipment, net	10,119			215,980		110,670			—			336,769
Investment in subsidiaries	294,154			—		24,798			(318,952		)	—
Other assets	42,008			550		89,798			—			132,356
Total assets	$	499,512		$	584,586	$	392,984		$	(318,952	)	$	1,158,130
Liabilities and Stockholders’ Equity
Short-term debt	$	—		$	—	$	7,517		$	—		$	7,517
Accounts payable	2,360			38,454		65,856			—			106,670
Other current liabilities	4,746			52,961		23,591			—			81,298
Total current liabilities	7,106			91,415		96,964			—			195,485
Long-term debt	312,881			—		1,016			—			313,897
Other long-term liabilities	49,500			32,675		44,325			—			126,500
Intercompany accounts	(364,832		)	94,647		270,185			—			—
Titan stockholders' equity	494,857			365,849		(19,506		)	(346,343		)	494,857
Noncontrolling interests	—			—		—			27,391			27,391
Total liabilities and stockholders’ equity	$	499,512		$	584,586	$	392,984		$	(318,952	)	$	1,158,130



(Amounts in thousands)	Consolidating Condensed Balance Sheets December 31, 2011
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	125,266		$	6	$	3,898		$	—		$	129,170
Accounts receivable	—			137,226		52,301			—			189,527
Inventories	—			162,134		28,738			—			190,872
Prepaid and other current assets	27,251			15,490		12,283			—			55,024
Total current assets	152,517			314,856		97,220			—			564,593
Property, plant and equipment, net	9,562			219,734		105,446			—			334,742
Investment in subsidiaries	184,317			—		—			(184,317		)	—
Other assets	44,918			1,454		64,579			—			110,951
Total assets	$	391,314		$	536,044	$	267,245		$	(184,317	)	$	1,010,286
Liabilities and Stockholders’ Equity
Short-term debt	$	—		$	—	$	11,723		$	—		$	11,723
Accounts payable	930			33,563		42,081			—			76,574
Other current liabilities	22,687			39,457		25,325			—			87,469
Total current liabilities	23,617			73,020		79,129			—			175,766
Long-term debt	312,881			—		5,000			—			317,881
Other long-term liabilities	29,267			38,187		52,306			—			119,760
Intercompany accounts	(369,690		)	157,264		212,426			—			—
Titan stockholders' equity	395,239			267,573		(81,616		)	(185,957		)	395,239
Noncontrolling interests	—			—		—			1,640			1,640
Total liabilities and stockholders’ equity	$	391,314		$	536,044	$	267,245		$	(184,317	)	$	1,010,286



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows For the Nine Months Ended September 30, 2012
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by operating activities	$	20,502		$	21,736		$	42,850		$	85,088
Cash flows from investing activities:
Capital expenditures	(3,571		)	(22,076		)	(10,672		)	(36,319		)
Acquisitions, net of cash acquired	(32,760		)	—			—			(32,760		)
Other, net	—			355			281			636
Net cash used for investing activities	(36,331		)	(21,721		)	(10,391		)	(68,443		)
Cash flows from financing activities:
Payment on debt	—			—			(14,434		)	(14,434		)
Term loan borrowing	—			—			4,378			4,378
Proceeds from exercise of stock options	925			—			—			925
Excess tax benefit from stock options exercised	185			—			—			185
Dividends paid	(634		)	—			—			(634		)
Net cash provided by (used for) financing activities	476			—			(10,056		)	(9,580		)
Effect of exchange rate change on cash	—			—			(1,345		)	(1,345		)
Net increase (decrease) in cash and cash equivalents	(15,353		)	15			21,058			5,720
Cash and cash equivalents, beginning of period	125,266			6			3,898			129,170
Cash and cash equivalents, end of period	$	109,913		$	21		$	24,956		$	134,890



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows For the Nine Months Ended September 30, 2011
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by (used for) operating activities	$	(18,544	)	$	12,085		$	(5,224	)	$	(11,683	)
Cash flows from investing activities:
Capital expenditures	(2,583		)	(13,514		)	(1,804		)	(17,901		)
Acquisitions, net of cash acquired	(99,118		)	—			—			(99,118		)
Purchases of marketable securities	(30,000		)	—			—			(30,000		)
Other, net	—			1,431			510			1,941
Net cash used for investing activities	(131,701		)	(12,083		)	(1,294		)	(145,078		)
Cash flows from financing activities:
Repurchase of senior unsecured notes	(1,064		)	—			—			(1,064		)
Payment on debt	—			—			(629		)	(629		)
Term loan borrowing	—			—			14,148			14,148
Proceeds from exercise of stock options	477			—			—			477
Dividends paid	(598		)	—			—			(598		)
Net cash provided by (used for) financing activities	(1,185		)	—			13,519			12,334
Effect of exchange rate change on cash	—			—			(799		)	(799		)
Net increase (decrease) in cash and cash equivalents	(151,430		)	2			6,202			(145,226		)
Cash and cash equivalents, beginning of period	239,362			6			132			239,500
Cash and cash equivalents, end of period	$	87,932		$	8		$	6,334		$	94,274