Agriculture and construction equipment dealer Titan Machinery recently discussed quarterly earnings with investors.
Total revenue for the three months that ended June 30 increased 24.4 percent, the company reported. Titan’s equipment business increased by 34.6 percent, and while each business segment contributed to that growth, agriculture and the international segment, driven by farm equipment sales, recorded growth higher than 40 percent.
International sales improved 36.4 percent. Ag sales increased by 29.8 percent.
“The business climate for farm equipment is extremely healthy, primarily due to the continued high prices for ag commodities,” COO Bryan Knutson said.
“We currently have customer commitments for the majority of our new machinery orders being shipped in Q3 and Q4 of FY ’22,” Knutson said. “And we are also finishing presale customer orders for production slots into the first of FY ’23.”
The company is increasing its agriculture segment revenue growth assumption to 18 to 23 percent. The previous assumption was 15 to 20 percent. In the international segment, the growth assumption is being revised to 27 to 32 percent. It had been 17 to 22 percent.
Titan Machinery attributes the bigger bump in the international assumption to “strong year-to-date performance combined with good crop conditions in our international footprint and strong global ag commodity prices ….”
Source: Titan Machinery