The depreciation of the US dollar against currencies of some other major farm producers is fostering a long-term boom in America's market for large farm machinery, the head of tyre-maker Titan International has said.

Maurice Taylor, Titan's chairman and chief executive, said that while Brazil had become a "big competitor" to the US in corn, cotton and soybeans, the South American country's farmers were fighting an appreciating currency.

"Remember, a few years ago the Brazilian real conversion rate to US dollars was 4:1. Today it is 1.8:1. Therefore, it's a great time for the American farmer," Mr Taylor said.

US growers' "very profitable" position would support farm equipment purchases, he said, singling out John Deere as set to be a "big winner".

"Large farm is running good and we believe it will go on for a few more years because corn, soybeans, cotton and wheat all use big equipment," Mr Taylor added.

Ahead of forecasts

The comments came as Titan, which makes tyres for tractor-makers including Deere, Fendt and New Holland, unveiled an 11% rise to $229.7m in sales for the April-to-June period.

Operating profits jumped by 35% to $17.4m, helped by a cut in research and development expenses, although a $2.7m charge for a bond repurchase depressed earnings to $4.57m, down 23% year on year.

Nonetheless, the earnings, equivalent to $0.12 a share, came in narrowly ahead of Wall Street forecasts of a $0.11-a-share result.

Mr Taylor added that the company was set to meet its financial targets for the full year "on the mid-to-high side if business keeps going as it is today".

And Titan was set to decide within 45 days on its acquisition plans, which have been in the pipeline for months.

The company, which two weeks ago rejigged its board to free up former finance director Kent Hackamack to focus on deals, recently completed the $7.4m purchase of Denman Tire from bankruptcy.

Titan shares closed 1.1% higher at $11.53 in New York.