Titan International Announces Second Quarter 2016 Results

"So with our current cash of $207 million and the potential proceeds from the sale of noncore businesses, our total cash balances will continue to grow and help grow our core tire/wheel business. I believe we are in a great position to expand in our core business of tires, wheels and assemblies for farm, construction and mining. I believe there is no other company in the world with the capability and drive to produce the wheels and tires which will meet the demands on the agriculture, construction and mining equipment of the future. With all the positive things happening within Titan, I continue to be optimistic about our future."

Financial Summary:

Net Sales:   Net sales for the quarter ended June 30, 2016, were $330.2 million compared to $376.1 million in 2015, a decrease of 12 percent. Sales declined across all reported segments.   Sales volume was flat as the agricultural segment remains in a cyclical downturn; however, we experienced slightly higher volumes from both the earthmoving/construction segment and the consumer segment. Unfavorable currency translation affected sales by 4 percent and a reduction in price mix of 8 percent further eroded sales.

Net sales for the six months ended June 30, 2016, were $652.0 million compared to $778.1 million in 2015, a decrease of 16 percent.   Sales volume was down 5 percent as both the agricultural and earthmoving/construction segments continue to see lower volume sales compared to prior year.  The consumer segment was affected by the decrease in high-speed brake sales related to lower Chinese infrastructure investment and by lower sales related to economic stress in Brazil.  Unfavorable currency translation affected sales by 5 percent and a reduction in price mix of 6 percent further eroded sales.

Gross profit:  Gross profit for the second quarter of 2016 was $45.1 million, or 13.7 percent of net sales, compared to $51.1 million, or 13.6 percent of net sales, for the second quarter of 2015. Despite lower sales, gross profit margins remain comparative as there is a continued focus on improving productivity efficiency, rationalizing expenditures, finding lower cost material, improving quality, and optimizing prices.

Gross profit for the first six months of 2016 was $77.0 million, or 11.8 percent of net sales, compared to $93.8 million, or 12.1 percent of net sales, in 2015.  Gross profit margins continue to remain around 12 percent as there is a continued focus on improving productivity efficiency, rationalizing expenditures, finding lower cost material, improving quality, and optimizing prices.

Selling, general and administrative expenses:  Selling, general and administrative (SG&A) expenses for the second quarter of 2016 were $36.3 million, or 11.0 percent of net sales, compared to $37.8 million, or 10.1 percent of net sales, for 2015.  SG&A expenses for the six months ended June 30, 2016 were $71.4 million, or 10.9 percent of net sales, compared to $73.5 million, or 9.4 percent of net sales, for 2015.  

Income (loss) from operations:   Income from operations for the second quarter of 2016 was $4.0 million, or 1.2 percent of net sales, compared to income of $7.5 million, or 2.0 percent of net sales, in 2015. Loss from operations for the six months ended June 30, 2016, was $(4.0) million, or (0.6) percent of net sales, compared to income from operations of $8.3 million, or 1.1 percent of net sales, in 2015.

Interest expense:  Interest expense was $8.0 million and $8.6 million for the quarters ended June 30, 2016, and 2015, respectively. Interest expense was $16.5 million and $17.4 million for the six months ended June 30, 2016, and 2015, respectively.

Earnings per share:  For the quarters ended June 30, 2016 and 2015, basic and diluted earnings per share were $(0.07) and $0.17, respectively.  For the six months ended June 30, 2016 and 2015, basic and diluted earnings per share were $(0.34) and $0.12, respectively.

On an adjusted basis (see Appendix attached) basic and diluted earnings per share for the quarters ended June 30, 2016 and 2015 were $(0.04) and $0.02, respectively. For the six months ended June 30, 2016 and 2015, basic and diluted earnings per share were $(0.21) and $0.08, respectively.

Capital expenditures: Titan's capital expenditures were $10.9 million for the second quarter of 2016 and $11.1 million for the second quarter of 2015.  Year-to-date expenditures were $18.1 million for 2016 compared to $22.5 million for 2015.

Debt balance:  Total long-term debt balance was $414.6 million at June 30, 2016, compared to $475.4 million at December 31, 2015.  Short-term debt balance was $89.0 million at June 30, 2016, and $31.2 million at December 31, 2015.   Net debt (debt less cash and cash equivalents) was $296.4 million at June 30, 2016, compared to $306.5 million at December 31, 2015.

Equity balance:  The Company's equity was $333.2 million at June 30, 2016, compared to $344.7 million at December 31, 2015.

Second Quarter Conference Call:

Titan will be hosting a conference call and webcast for the second quarter earnings announcement at 9 a.m. Eastern Time on Thursday, August 4, 2016.  To participate in the conference call, dial (888) 347-5307 five minutes prior to the scheduled time.  International callers dial (412) 902-4283; Canada (855) 669-9657.   The call will be webcast and can be accessed at www.titan-intl.com within the "Investor Relations" page under the "Webcasts & Events" section.

Safe harbor statement:

Certain statements and information in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  The words "believe," "expect," "anticipate," "plan," "would," "could," "outlook," "potential," "may," "will" and other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature.  These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us.  Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect.  The matters discussed in these forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to, risk factors as detailed in Titan International, Inc.'s periodic filings with the Securities and Exchange Commission, including the annual report on Form 10-K for the year ended December 31, 2015.  The company cautions that any forward-looking statements included in this press release are subject to a number of risks and uncertainties and the company undertakes no obligation to publicly update or revise any forward-looking statements.

Company description:

Titan International Inc. (NYSE: TWI), a holding company, owns subsidiaries that supply wheels, tires, assemblies and undercarriage product for off-highway equipment used in agricultural, earthmoving/construction and consumer applications.

Titan International, Inc. Consolidated Condensed Statements of Operations (Unaudited) Amounts in thousands, except earnings per share data
	Three months ended								Six months ended
	June 30,								June 30,
	2016				2015				2016				2015
Net sales	$	330,214			$	376,067			$	652,008			$	778,126
Cost of sales	285,139				325,014				575,045				684,279
Gross profit	45,075				51,053				76,963				93,847
Selling, general and administrative expenses	36,302				37,848				71,364				73,522
Research and development expenses	2,714				2,779				5,193				5,865
Royalty expense	2,109				2,895				4,403				6,120
Income (loss) from operations	3,950				7,531				(3,997)				8,340
Interest expense	(7,982)				(8,642)				(16,494)				(17,398)
Foreign exchange gain	2,182				3,647				7,005				9,613
Other income	3,049				3,259				6,954				5,576
Income (loss) before income taxes	1,199				5,795				(6,532)				6,131
Provision for income taxes	3,648 Werbung Mehr Nachrichten zur Titan International Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 08:56 - PR Newswire Samson Rock Capital LLP - Form 8.3 - TClarke Plc 02:00 - PR Newswire FirstGroup Plc - Transaction in Own Shares 02:00 - PR Newswire International Business Machines Corp - Doc re Form 8-K SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59