QUINCY, Ill. (May 9, 2016) — Titan International Inc. reported a loss from operations of $7.9 million in the quarter ended March 31, as sales fell 20 percent amid “continued weakness” in the firm's end markets.
The loss from operations compared with income of $800,000 in the first quarter of 2015, but is the third consecutive quarter with a loss from operations for the Quincy-based tire and wheel maker.
Titan also reported an adjusted net loss for the quarter of $9.2 million, compared with net income of $3.2 million a year ago. Sales revenue dropped to $321.8 million on 11-percent declines in volume in the agricultural and earthmoving/construction segments, which Titan portrayed as in a “cyclical downturn.”
Unfavorable currency translation affected sales by 6 percent and a reduction in price mix of 3 percent further eroded sales, Titan said.
Despite the losses, Titan CEO and Chairman Maurice Taylor pointed to a few bright spots, such as an improvement in agricultural segment gross profit by nearly 100 basis points despite a 21-percent drop in sales.
Moving forward, Titan continues to focus its marketing efforts on raising awareness of its LSW (low sidewall) solution, where it claims to have expanded LSW options to 18 major vehicle manufacturers with more than 200 different assembly part numbers.
In a conference call with analysts, Mr. Taylor said Titan is developing tire and wheel sizes for smaller-sized tractors — those up to 125 horsepower — demand for which has been “real steady.”
Titan disclosed in connnection with the earnings that John Hrudicka was promoted to senior vice president of operations, a new position that's focused principally on the North American business.
Titan also announced a few other personnel changes during the conference call, including:
- Tara Schrock, hired to be agricultural sales director for North America; she joins Titan from Fisher Barton Blades Inc., where she was vice president of sales while also continuing to worker for Chaffer Farms, her family's business.
- Brice Howell, hired to manage Titan's North American associate dealer programs; he previously was sales development manager for Mitas Tyres for nearly two years.
- Doug Loney, hired to work with Titan's OEM account management team; he joins Titan from Firestone Agricultural Solutions, where he worked for nearly 24 years.
- Kim Boccardi, hired in 2015 to be marketing director; she joined Titan last June from Archer Daniels Midlands Co., where she was marketing and product manager.