Titan 3Q figures show lower sales, but also reduced losses
Titan published third quarter 2016 financial shows sales for the third quarter of 2016 were $306.2 million, down 0.9 per cent, compared to $308.8 million in the third quarter of 2015. Gross profit for the third quarter of 2016 was $33.0 million, or 10.8 per cent of net sales, compared to $26.2 million, or 8.5 per cent of net sales, for the third quarter of 2015.
Operating loss for the third quarter of 2016 was $8.3 million, or 2.7 per cent of net sales, compared to loss of $14.5 million, or 4.7 per cent of net sales, for the third quarter of 2015.
Basic and diluted earnings per share for the third quarter 2016 and 2015 were $(0.21) and $(0.79), respectively. Adjusted basic and diluted earnings per share for the third quarter of 2016 and 2015 were $(0.18) and $(0.59), respectively (see Appendix attached).
CEO and chairman, Maurice Taylor, commented: “The Titan team has done a good job managing gross margin; 10.8 per cent in third quarter 2016 versus 8.5 per cent in third quarter 2015…Our business in both Russia and Brazil has continued to strengthen. We believe our markets are holding and there should be a slight increase going forward.
“Discussions regarding the previously announced possible sale or other transaction involving ITM are continuing. We are also looking at the possible disposal of the Brownsville, Texas facility. The appraised values at Brownsville came in at the level we expected. We have received interest from others, but the two current renters have the first options to purchase this facility.
“Investment bankers visited the Titan Tire Reclamation Corp. (TTRC) site in October and we are waiting for their presentations concerning a potential sale of this operation. They were all impressed with the pollution free process TTRC uses to reclaim super giant tyres. Each of these tyres produce approximately 600 gallons of oil, 4,000 pounds of TVR carbon residue, and 2,000 pounds of steel.”