Titan Intl. Reports Strongest Q3 Results Since 2013
Titan International, Inc. reported results for the third quarter ended September 30, 2022 with the strongest third quarter revenue and profit performance since 2013. Net sales were $450.4 million, a $145.6 million (47.8%) YoY increase, the highest quarterly sales since Q2 2014 – Gross margin was 13.4%, up from 10.3% in Q3 of the prior year.
Paul Reitz, President and Chief Executive Officer commented, “Titan has significantly strengthened its financial position over the past two years and this quarter was no exception as we generated $40 million in free cash and have reduced our debt by $35 million this quarter.”
During the quarter ended September 30, 2021, net sales increased 60 percent reflecting volume improvements due to demand in the market, reflective of improved farmer income, replacement of an aging large equipment fleet and replenishment of lower equipment inventory levels within the equipment dealer channels. The increase in gross profit and margin is primarily attributable to the impact of increases in sales volume as described previously and cost reduction initiatives executed across global production facilities.
“The business climate is swimming with noise these days, but if you sift through it you will find that Agriculture is standing on solid ground. We have continually stated that farmers are in a good financial position and the recent USDA reports illustrates that corn and soybean supply-demand will support good pricing into 2024, at a minimum,” Reitz added. “Farmers look at crop prices as one of the key indicators for purchasing new equipment. That combined with pent-up demand from supply chain and labor disruptions at OEM’s, along with continuing low levels of available used equipment, bodes well for 2023 large Ag demand. We believe that the bigger picture view is that large Ag remains in a solid position, and we expect the sector to work through current supply chain challenges with a bright future ahead.”