Engineering firm Titan Europe has revealed revenues are 50 per cent up on the first half of last year, aided by an effective pricing policy and higher volumes.

Kidderminster-based Titan (TSW) said it expects 2011 to be ahead of market expectations as revenue for the five months to the end of May rose.

The company, which makes wheels and undercarriages for mining, construction and agricultural vehicles, said mining sales more than doubled and this sector now represents a quarter of total group sales.

Sales to the construction sector, from which Titan Europe derives more than half its revenue, were ahead by 40 per cent, boosted by growth in wheels sales in Europe and undercarriage sales in the Far East, Europe and the United States.

The group, which completed the £7.5 million takeover of joint venture business Titan Jantsa in April, also said agriculture sales rose 49 per cent.

It said in a statement: “As planned, trading margins are improving due to an effective sales price policy and volume impact leverage on fixed costs. We continue to have aggressive programmes for cost reduction through optimising manufacturing process and location, make/buy analysis and “lean” manufacturing techniques.

“We have benefited from our close working relationship with our principal Italian banks which has given us the flexibility to manage the current rapid expansion phase of the business, including the recently announced acquisition of our Turkish operations.”