Dealer News Update

Retail store, Titan Machinery Inc.’s fiscal second-quarter profit was down 17% as the agricultural and construction-equipment retailer saw its margins pressured by a drought and a competitive retail environment, despite a better than expected double-digit jump in revenue. The company cut its earnings view for the year.

The company has posted robust growth from agricultural-equipment sales in recent quarters, riding an increase in grain prices. More recently, the company has seen improvements in construction-equipment rentals, helped in part by an oil-shale boom in North Dakota, where it is based. The company also has spurred growth through acquisitions. During the second quarter, it closed its acquisition of Curly Olney’s Inc., which consists of two Case IH dealerships located in McCook and Imperial, NE.

Chief Executive David Meyer said despite strengthening commodity prices midway through the company’s second quarter, customer sentiment and equipment margins were negatively affected by a severe drought in the Midwest.

Equipment revenue, the biggest topline contributor, jumped 36%. Agriculture segment sales increased 26% although the segment’s earnings declined 3.3%. The smaller construction segment saw sales grow 59% while its profit was up 9%.