Titan International reduces debt, loss from operations
Titan International is currently in the midst of its planning process for 2021, and Paul Reitz says the company has “plenty of reasons to be optimistic.” He opines that Titan has navigated the challenges brought by the corona pandemic well and is thus positioning itself for a “stronger 2021”. The president and chief executive officer’s comments came as Titan International reported its financial results for the third quarter of 2020, a period in which it managed to reduce its net loss by more than a third compared with Q3 2019.
Net sales for the third quarter of 2020 were $304.8 million, 11.9 per cent lower than in Q3 2019. Net loss applicable to common shareholders for the third quarter of 2020 was $12.6 million, equal to a loss of $0.21 per basic and diluted share, compared to a loss of $19.6 million in Q3 2019.
Net sales for the first nine months of 2020 were $932.4 million, 18.7 per cent down from Q3 2019. Net loss applicable to common shareholders for the first nine months of 2020 was $43.2 million, equal to a loss of $0.71 per basic and diluted share, compared to a loss of $25.5 million for the first nine months of 2019.
“We’re proud that we again produced very solid financial results this quarter on almost all fronts despite an environment filled with uncertainty and challenges,” commented Reitz. “In many aspects, the third quarter financial results were a continuation of what we achieved during the second quarter as we again had strong margin performance, good working capital management, and improvements in our balance sheet leading the way to another solid quarter.”
Reitz also reported that Titan International continued to lower its debt: “At $366 million, our net debt represents the lowest level since Q3 2018 and has improved $85 million over the past twelve months. During the course of the pandemic, we have outlined several steps we would take to weather the uncertainty and position Titan for the future, and I am very pleased with the accomplishments we have made thus far both operationally and financially. We now anticipate full year adjusted EBITDA to be in the range of $40 million to $44 million.”