Titan Reports Q3 Earnings
Titan International, a leading global manufacturer of off-highway wheels, tires, assemblies and undercarriage products, reported financial results for the third quarter ended September 30, 2024.
For the three months ending September 30, 2024, net sales increased to $448.0 million from $401.8 million in the same period of 2023, primarily due to higher volumes in the consumer segment and contributions from the Carlstar acquisition. However, this growth was partially offset by decreased sales in the agricultural and earthmoving/construction sectors, attributed to lower global demand. Additionally, the increase in net sales was affected by negative pricing trends and a 3.3% unfavorable currency translation impact. Gross profit also declined to $58.8 million, or 13.1% of net sales, compared to 16.4% the previous year, influenced by a negative price/mix effect, reduced fixed cost leverage and increased material costs.
Selling, general and administrative expenses (SG&A) rose to $49.5 million, or 11.1% of net sales, driven largely by ongoing costs associated with the Carlstar operations. Consequently, income from operations fell to $2.8 million compared to $27.0 million in the prior year, reflecting the lower gross profit. The company reported an income tax expense of $12.9 million for the three months ended September 30, 2024, up from $4.7 million in 2023, with significant variations in effective tax rates primarily due to decreased pre-tax income and non-deductible expenses related to the acquisition. Overall, year-to-date income taxes paid totaled $16.4 million through September 30, 2024.