Dealer News: Financial Results from Titan

Titan Machinery Inc. recently released its financial results for the quarter ending October 31.

The company’s gross profit margin was 17.6 percent in the third quarter of fiscal 2017, compared to 19.5 percent in the same quarter last year. This decrease was primarily the result of equipment gross margin compression as Titan accelerated its used equipment inventory reduction efforts through aggressive retailing.

The company reduced its used equipment inventory by $86 million, or 32 percent, during the first nine months of its fiscal year. In the agriculture segment, revenue for the third quarter was $205.5 million, compared to $211.3 million in the third quarter last year.

“During the third quarter, our agricultural customers experienced high crop yields and, despite continued low commodity prices, the yields improved customer sentiment, which created an opportunity to increase equipment sales,” said David Meyer, Titan Machinery’s chairman and CEO. “We took this opportunity to accelerate our used equipment reduction efforts by aggressively retailing our used equipment inventory during the third quarter.”

Agriculture same-store sales were down by 13 to 18 percent.  Source: Titan Machinery