Titan International reports net loss for Q2 2016
The decline in the market for high horsepower tractors and combines in North America continues, and this ongoing trend has left a sizable dent in Titan International’s second quarter revenues. Sales for the three months to 30 June 2016 amounted to US$330.2 million, 12.2 per cent below sales for the previous year’s corresponding quarter and 44.3 per cent less than sales in the second quarter of 2013, prior to the start of the downturn. Gross profit for the quarter amounted to $45.1 million, 13.7 per cent of net sales, an 11.7 per cent year-on-year reduction and 48.0 per cent below the second quarter 2013 gross profit. The net loss applicable to common shareholders was -$3.8 million, compared with a net income of $9.4 million a year ago and net income of $23.2 million in the corresponding quarter of 2013.
Maurice Taylor, Titan International’s CEO and chairman comments that the “second quarter has some good news, some not so good news, and some great reasons to be optimistic.” Taylor notes that Titan’s sales the under 100 HP tractor segment are “holding up well,” while an “uptick” has been seen in aftermarket construction and forestry tyre sales. As for the agricultural market, the Titan boss believes it is “at or near the bottom,” however the tyre maker expects “to gain business from our competitors.” The company enjoyed slightly higher volumes from both the earthmoving/construction segment and the consumer segment.
Unfavourable currency translation affected sales by four per cent, and these were further eroded by an eight per cent reduction in price mix.
Further information on Titan International’s Q2 2016 results can be found in our company profiles and reports section.