SUBSIDIARY GUARANTOR FINANCIAL INFORMATION

The Company's 6.875% senior secured notes due 2020 and 5.625% convertible senior subordinated 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, and Titan Wheel Corporation of Illinois. 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, 2014
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net sales	$	—		$	204,222	$	245,357		$	—	$	449,579
Cost of sales	206			180,643		223,431			—		404,280
Gross profit (loss)	(206		)	23,579		21,926			—		45,299
Selling, general and administrative expenses	2,032			15,364		23,880			—		41,276
Research and development expenses	—			1,024		1,838			—		2,862
Royalty expense	—			1,924		1,751			—		3,675
Income (loss) from operations	(2,238		)	5,267		(5,543		)	—		(2,514		)
Interest expense	(8,128		)	—		(823		)	—		(8,951		)
Intercompany interest income (expense)	1,661			—		(1,661		)	—		—
Other income (expense)	810			1		(11,490		)	—		(10,679		)
Income (loss) before income taxes	(7,895		)	5,268		(19,517		)	—		(22,144		)
Provision (benefit) for income taxes	(5,050		)	2,115		(2,192		)	—		(5,127		)
Equity in earnings of subsidiaries	(14,172		)	—		(1,659		)	15,831		—
Net income (loss)	(17,017		)	3,153		(18,984		)	15,831		(17,017		)
Net loss noncontrolling interests	—			—		(7,950		)	—		(7,950		)
Net income (loss) attributable to Titan	$	(17,017	)	$	3,153	$	(11,034	)	$	15,831	$	(9,067	)



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Three Months Ended September 30, 2013
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	256,252		$	241,258		$	—		$	497,510
Cost of sales	241			216,445			218,318			—			435,004
Gross profit (loss)	(241		)	39,807			22,940			—			62,506
Selling, general and administrative expenses	3,561			16,513			18,657			—			38,731
Research and development expenses	(17		)	1,423			1,372			—			2,778
Royalty expense	—			1,850			2,092			—			3,942
Income (loss) from operations	(3,785		)	20,021			819			—			17,055
Interest expense	(10,945		)	—			(1,469		)	—			(12,414		)
Intercompany interest income (expense)	2,469			—			(2,469		)	—			—
Other income (expense)	1,182			(117		)	7,657			—			8,722
Income (loss) before income taxes	(11,079		)	19,904			4,538			—			13,363
Provision (benefit) for income taxes	(4,717		)	7,435			2,993			—			5,711
Equity in earnings of subsidiaries	14,014			—			4,827			(18,841		)	—
Net income (loss)	7,652			12,469			6,372			(18,841		)	7,652
Net loss noncontrolling interests	—			—			(441		)	—			(441		)
Net income (loss) attributable to Titan	$	7,652		$	12,469		$	6,813		$	(18,841	)	$	8,093



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Nine Months Ended September 30, 2014
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net sales	$	—		$	712,844		$	799,406		$	—	$	1,512,250
Cost of sales	719			650,797			738,325			—		1,389,841
Gross profit (loss)	(719		)	62,047			61,081			—		122,409
Selling, general and administrative expenses	6,064			51,965			75,090			—		133,119
Research and development expenses	72			4,391			5,298			—		9,761
Royalty expense	—			5,698			5,548			—		11,246
Loss from operations	(6,855		)	(7		)	(24,855		)	—		(31,717		)
Interest expense	(24,645		)	—			(2,491		)	—		(27,136		)
Intercompany interest income (expense)	4,963			—			(4,963		)	—		—
Other income (expense)	2,344			49			(6,221		)	—		(3,828		)
Income (loss) before income taxes	(24,193		)	42			(38,530		)	—		(62,681		)
Provision (benefit) for income taxes	(11,021		)	488			(5,112		)	—		(15,645		)
Equity in earnings of subsidiaries	(33,864		)	—			(20,540		)	54,404		—
Net income (loss)	(47,036		)	(446		)	(53,958		)	54,404		(47,036		)
Net loss noncontrolling interests	—			—			(19,621		)	—		(19,621		)
Net income (loss) attributable to Titan	$	(47,036	)	$	(446	)	$	(34,337	)	$	54,404	$	(27,415	)




(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Nine Months Ended September 30, 2013
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	903,628		$	765,560		$	—		$	1,669,188
Cost of sales	908			734,460			687,908			—			1,423,276
Gross profit (loss)	(908		)	169,168			77,652			—			245,912
Selling, general and administrative expenses	8,008			54,637			62,182			—			124,827
Research and development expenses	(35		)	4,136			4,180			—			8,281
Royalty expense	—			5,478			5,482			—			10,960
Income (loss) from operations	(8,881		)	104,917			5,808			—			101,844
Interest expense	(29,509		)	—			(6,415		)	—			(35,924		)
Convertible debt conversion charge	(7,273		)	—			—			—			(7,273		)
Gain on earthquake insurance recovery	—			—			22,451			—			22,451
Intercompany interest income (expense)	5,158			—			(5,158		)	—			—
Other income (expense)	2,741			(91		)	5,062			—			7,712
Income (loss) before income taxes	(37,764		)	104,826			21,748			—			88,810
Provision (benefit) for income taxes	(6,561		)	38,025			7,449			—			38,913
Equity in earnings of subsidiaries	81,100			—			38,351			(119,451		)	—
Net income (loss)	49,897			66,801			52,650			(119,451		)	49,897
Net loss noncontrolling interests	—			—			(888		)	—			(888		)
Net income (loss) attributable to Titan	$	49,897		$	66,801		$	53,538		$	(119,451	)	$	50,785



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income (Loss) For the Three Months Ended September 30, 2014
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(17,017	)	$	3,153	$	(18,984	)	$	15,831		$	(17,017	)
Currency translation adjustment, net	(40,174		)	—		(40,174		)	40,174			(40,174		)
Pension liability adjustments, net of tax	42			450		(408		)	(42		)	42
Comprehensive income (loss)	(57,149		)	3,603		(59,566		)	55,963			(57,149		)
Net comprehensive loss attributable to noncontrolling interests	—			—		(17,002		)	—			(17,002		)
Comprehensive income (loss) attributable to Titan	$	(57,149	)	$	3,603	$	(42,564	)	$	55,963		$	(40,147	)



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income (Loss) For the Three Months Ended September 30, 2013
	Titan Intl., Inc. (Parent)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	7,652	$	12,469	$	6,372		$	(18,841	)	$	7,652
Currency translation adjustment, net	854		—		854			(854		)	854
Pension liability adjustments, net of tax	969		781		188			(969		)	969
Comprehensive income (loss)	9,475		13,250		7,414			(20,664		)	9,475
Net comprehensive income attributable to noncontrolling interests	—		—		(85		)	—			(85		)
Comprehensive income (loss) attributable to Titan	$	9,475	$	13,250	$	7,499		$	(20,664	)	$	9,560




(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income (Loss) For the Nine Months Ended September 30, 2014
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(47,036	)	$	(446	)	$	(53,958	)	$	54,404		$	(47,036	)
Currency translation adjustment, net	(31,960		)	—			(31,960		)	31,960			(31,960		)
Pension liability adjustments, net of tax	787			1,350			(563		)	(787		)	787
Comprehensive income (loss)	(78,209		)	904			(86,481		)	85,577			(78,209		)
Net comprehensive loss attributable to noncontrolling interests	—			—			(30,247		)	—			(30,247		)
Comprehensive income (loss) attributable to Titan	$	(78,209	)	$	904		$	(56,234	)	$	85,577		$	(47,962	)




(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income (Loss) For the Nine Months Ended September 30, 2013
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	49,897		$	66,801	$	52,650		$	(119,451	)	$	49,897
Unrealized gain (loss) on investments, net of tax	(3		)	—		(3		)	3			(3		)
Currency translation adjustment, net	(24,513		)	—		(24,513		)	24,513			(24,513		)
Pension liability adjustments, net of tax	2,990			2,343		647			(2,990		)	2,990
Comprehensive income (loss)	28,371			69,144		28,781			(97,925		)	28,371
Net comprehensive loss attributable to noncontrolling interests	—			—		(3,243		)	—			(3,243		)
Comprehensive income (loss) attributable to Titan	$	28,371		$	69,144	$	32,024		$	(97,925	)	$	31,614



(Amounts in thousands)	Consolidating Condensed Balance Sheets September 30, 2014
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	107,923		$	4		$	72,344	$	—		$	180,271
Accounts receivable, net	—			98,003			150,328		—			248,331
Inventories	—			118,924			256,343		—			375,267
Prepaid and other current assets	54,608			19,248			59,404		—			133,260
Total current assets	162,531			236,179			538,419		—			937,129
Property, plant and equipment, net	7,834			166,403			392,406		—			566,643
Investment in subsidiaries	881,479			—			120,676		(1,002,155		)	—
Other assets	35,352			344			133,484		—			169,180
Total assets	$	1,087,196		$	402,926		$	1,184,985	$	(1,002,155	)	$	1,672,952
Liabilities and Stockholders’ Equity
Short-term debt	$	—		$	—		$	24,768	$	—		$	24,768
Accounts payable	724			15,889			152,826		—			169,439
Other current liabilities	30,306			47,837			63,464		—			141,607
Total current liabilities	31,030			63,726			241,058		—			335,814
Long-term debt	460,161			—			41,115		—			501,276
Other long-term liabilities	33,221			12,895			80,359		—			126,475
Intercompany accounts	(78,730		)	(181,496		)	260,226		—			—
Titan stockholders' equity	641,514			507,801			494,354		(1,002,155		)	641,514
Noncontrolling interests	—			—			67,873		—			67,873
Total liabilities and stockholders’ equity	$	1,087,196		$	402,926		$	1,184,985	$	(1,002,155	)	$	1,672,952



(Amounts in thousands)	Consolidating Condensed Balance Sheets December 31, 2013
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	81,472		$	4		$	107,884	$	—		$	189,360
Restricted cash	—			—			14,268		—			14,268
Accounts receivable, net	—			89,259			173,794		—			263,053
Inventories	—			129,113			255,807		—			384,920
Prepaid and other current assets	80,876			20,416			54,985		—			156,277
Total current assets	162,348			238,792			606,738		—			1,007,878
Property, plant and equipment, net	9,885			206,928			421,994		—			638,807
Investment in subsidiaries	884,222			—			141,752		(1,025,974		)	—
Other assets	34,259			387			139,900		—			174,546
Total assets	$	1,090,714		$	446,107		$	1,310,384	$	(1,025,974	)	$	1,821,231
Liabilities and Stockholders’ Equity
Short-term debt	$	—		$	—		$	75,061	$	—		$	75,061
Accounts payable	368			12,525			163,826		—			176,719
Other current liabilities	15,278			58,001			61,512		—			134,791
Total current liabilities	15,646			70,526			300,399		—			386,571
Long-term debt	460,161			—			37,533		—			497,694
Other long-term liabilities	40,658			15,571			82,701		—			138,930
Intercompany accounts	(113,474		)	(147,529		)	261,003		—			—
Titan stockholders' equity	687,723			507,539			518,435		(1,025,974		)	687,723
Noncontrolling interests	—			—			110,313		—			110,313
Total liabilities and stockholders’ equity	$	1,090,714		$	446,107		$	1,310,384	$	(1,025,974	)	$	1,821,231



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows For the Nine Months Ended September 30, 2014
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by operating activities	$	28,013		$	6,481		$	42,853		$	77,347
Cash flows from investing activities:
Capital expenditures	(766		)	(6,841		)	(38,722		)	(46,329		)
Acquisition of additional interest	(49		)	—			(13,346		)	(13,395		)
Decrease in restricted cash deposits	—			—			14,268			14,268
Other, net	—			360			4,250			4,610
Net cash used for investing activities	(815		)	(6,481		)	(33,550		)	(40,846		)
Cash flows from financing activities:
Payment on debt	—			—			(60,359		)	(60,359		)
Term loan borrowing	—			—			14,914			14,914
Proceeds from exercise of stock options	141			—			—			141
Excess tax benefit from stock options exercised	(51		)	—			—			(51		)
Payment of financing fees	(33		)	—			—			(33		)
Dividends paid	(804		)	—			—			(804		)
Net cash used for financing activities	(747		)	—			(45,445		)	(46,192		)
Effect of exchange rate change on cash	—			—			602			602
Net increase (decrease) in cash and cash equivalents	26,451			—			(35,540		)	(9,089		)
Cash and cash equivalents, beginning of period	81,472			4			107,884			189,360
Cash and cash equivalents, end of period	$	107,923		$	4		$	72,344		$	180,271



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows For the Nine Months Ended September 30, 2013
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by (used for) operating activities	$	(72,306	)	$	21,528		$	182,967		$	132,189
Cash flows from investing activities:
Capital expenditures	(5,979		)	(21,763		)	(27,214		)	(54,956		)
Acquisitions, net of cash acquired	—			—			(1,670		)	(1,670		)
Additional equity investment in Wheels India	—			—			(8,017		)	(8,017		)
Insurance Proceeds	—			—			2,879			2,879
Other, net	—			235			1,107			1,342
Net cash used for investing activities	(5,979		)	(21,528		)	(32,915		)	(60,422		)
Cash flows from financing activities:
Proceeds from borrowings	345,313			—			—			345,313
Payment on debt	—			—			(162,040		)	(162,040		)
Term loan borrowing	—			—			25,880			25,880
Convertible note conversion	(14,090		)	—			—			(14,090		)
Proceeds from exercise of stock options	863			—			—			863
Excess tax benefit from stock options exercised	(46		)	—			—			(46		)
Payment of financing fees	(5,520		)	—			—			(5,520		)
Dividends paid	(778		)	—			—			(778		)
Net cash provided by (used for) financing activities	325,742			—			(136,160		)	189,582
Effect of exchange rate change on cash	—			—			(3,007		)	(3,007		)
Net increase in cash and cash equivalents	247,457			—			10,885			258,342
Cash and cash equivalents, beginning of period	103,154			4			85,956			189,114
Cash and cash equivalents, end of period	$	350,611		$	4		$	96,841		$	447,456