Titan International, Inc. Reports Second Quarter 2018 Net Sales Up 18 Percent YOY and the Sixth Consecutive YOY Quarterly Increase

Summary of Operations

Net sales for the second quarter ended June 30, 2018, were $428.9 million, an increase of 17.7 percent from $364.4 million in the comparable prior year period, due to increases in net sales across all segments, particularly the earthmoving/construction segment, which experienced growth of 31.8 percent from the second quarter of 2017 and reflected general improvements in most geographies.  Overall net sales volume was up 16.1 percent over the comparable prior year quarter. Favorable changes in price/mix positively impacted net sales by 2.1 percent, while unfavorable currency translation, particularly in Latin America, negatively impacted net sales by 0.6 percent.

Net sales for the six months ended June 30, 2018, were $854.3 million, an increase of 18.3 percent from $721.9 million in the comparable prior year period, primarily as a result of an increase in net sales in the earthmoving/construction segment, which experienced sales growth of 35.3 percent as compared to the first six months of 2017. Overall net sales volume increased 13.8 percent over the comparable period of 2017, with higher volume across all segments, particularly in the earthmoving/construction segment.  Favorable changes in price/mix contributed a 3.1 percent increase to net sales and favorable currency translation increased net sales by an additional 1.5 percent.

Gross profit for the second quarter ended June 30, 2018, was $58.3 million, compared to $44.0 million in the comparable prior year period.  Gross margin was 13.6 percent of net sales for the latest quarter, compared to 12.1 percent of net sales in the comparable prior year period. The increase in gross profit was driven by increased sales volume partially offset by higher material costs, especially steel.  The increase in gross profit margin was primarily the result of production efficiencies driven by increased volume.

Gross profit for the six months ended June 30, 2018, was $117.9 million compared to $84.2 million in the comparable prior year period.  Gross margin was 13.8 percent of net sales for the first six months of 2018, compared to 11.7 percent of net sales in the comparable prior year period. The increase in gross profit was driven by the same factors impacting the second quarter results.

Selling, general and administrative (SG&A) expenses for the second quarter of 2018 were $36.7 million, compared to $34.5 million for the comparable prior year period.  As a percentage of net sales, SG&A was 8.6 percent, compared to 9.5 percent for the comparable prior year period. The increase in SG&A expenses primarily related to information technology costs related to company-wide initiatives in the second quarter of 2018 that were not present in the comparable period of the prior year.

SG&A expenses for the first six months of 2018 were $72.6 million, compared to $75.8 million for the comparable prior year period.  As a percentage of net sales, SG&A was 8.5 percent, compared to 10.5 percent for the comparable prior year period. The decrease in SG&A resulted from lower legal and non-recurring fees as compared to the comparable period in 2017, offset partially by increased information technology costs in 2018 related to company-wide initiatives.

For the second quarter of 2018, research and development (R&D) expenses were $2.8 million, or 0.6 percent of net sales, compared to $2.6 million, or 0.7 percent of net sales, for the comparable prior year period. For the first six months of 2018, R&D expenses were $5.6 million, or 0.7 percent of net sales, compared to $5.5 million, or 0.8 percent of net sales for the comparable prior year period. This R&D spending with respect to both 2018 and 2017 reflects initiatives to improve product designs and ongoing focus on quality.

Royalty expenses for the second quarter of 2018 were $2.6 million, or 0.6 percent of net sales, compared to $2.5 million, or 0.7 percent of net sales, for the second quarter of 2017.  Royalty expenses for the first six months of 2018 were $5.3 million, or 0.6 percent of net sales, compared to $5.1 million, or 0.7 percent of net sales, for the first six months of 2017.  The increased royalty expenses are the result of increased sales volume.

Income from operations for the second quarter of 2018 was $16.2 million, or 3.8 percent of net sales, compared to $4.4 million, or 1.2 percent of net sales, for the second quarter of 2017. Income from operations for the first six months of 2018 was $34.3 million, or 4.0 percent of net sales, compared to a loss from operations of $2.2 million, or 0.3 percent of net sales, for the first six months of 2017.

For the second quarter of 2018, interest expense was $7.7 million, compared to $7.3 million in the comparable prior year period. For the first six months of 2018, interest expense was $15.2 million, compared to $15.0 million in the comparable prior year period. The increase in interest expense was primarily due to increased borrowings under international working capital facilities partially offset by the reduced interest rate on Titan's senior secured notes, which were refinanced on November 20, 2017.

Foreign exchange loss was $3.6 million in the second quarter of 2018, compared to a loss of $5.3 million in the comparable period in 2017. Foreign exchange loss was $8.0 million in the first six months of 2018, compared to a loss of $0.8 million in the comparable period in 2017. The foreign currency loss in the three and six months ended June 30, 2018, primarily reflects the devaluation of Latin American currencies.

Other income was $2.5 million in the second quarter of 2018, compared to $1.8 million in the same quarter of 2017. Other income was $10.2 million in the first six months of 2018, compared to $4.4 million in the same period of 2017.

Income tax expense of $1.7 million was recorded for the second quarter of 2018, compared to a $0.1 million expense in the comparable prior year period.  Income tax expense of $0.9 million was recorded for the first six months of 2018, compared to a $3.6 million expense in the comparable prior year period.

As a result, 2018 second quarter net income applicable to common shareholders was $1.0 million, equal to $0.02 per basic and diluted share, compared to a loss of $10.3 million, equal to $(0.17) per basic and diluted share, in the comparable prior year period. Net income applicable to common shareholders for the first six months of 2018 was $15.0 million, equal to $0.25 per basic and diluted share, compared to a loss of $20.8 million, equal to $(0.35) per basic and diluted share, in the comparable prior year period.

EBITDA was $29.9 million for the second quarter of 2018, compared to $15.9 million in the comparable prior year period, an 88 percent increase.  Adjusted EBITDA was $33.5 million for the second quarter of 2018, compared to $21.2 million in the comparable prior year period, a 58 percent increase. The company utilizes EBITDA and adjusted EBITDA, non-GAAP measures, as a means to measure its operating performance.  A reconciliation of net income (loss) to EBITDA and adjusted EBITDA can be found at the end of this release.

EBITDA was $66.7 million for the first six months of 2018, compared to $31.0 million in the comparable prior year period, a 115 percent increase.  Adjusted EBITDA was $74.7 million for the first six months of 2018, compared to $31.7 million in the comparable prior year period, a 135 percent increase.

Financial Condition

Net cash used for operations for the six months ended June 30, 2018, was $29.9 million, compared to $30.6 million for the comparable prior year period.  While net income has improved in the current year, net sales growth required additional working capital.  Capital expenditures were $18.4 million for the first six months of 2018, compared to $15.2 million for the comparable prior year period.

The company ended the second quarter of 2018 with total cash and cash equivalents of $106.5 million.  Long-term debt at June 30, 2018, was $409.6 million, compared to $407.2 million at December 31, 2017.  Short-term debt was $52.4 million at June 30, 2018, compared to $43.7 million at December 31, 2017.  Net debt (total debt less cash and cash equivalents) was $355.5 million at June 30, 2018, compared to $307.3 million at December 31, 2017, as cash decreased during the first six months of 2018.

Teleconference and Webcast

Titan will be hosting a teleconference and webcast to discuss the second quarter financial results on Friday, August 3, 2018, at 9 a.m. Eastern Time.

The real-time, listen-only webcast can be accessed on our website at www.titan-intl.com within the "Investor Relations" page under the "News & Events" menu (https://ir.titan-intl.com/news-and-events/events/default.aspx).  Listeners should access the website at least 15 minutes prior to the live event to download and install any necessary audio software.

A webcast replay of the teleconference will be available on our website (https://ir.titan-intl.com/news-and-events/events/default.aspx) soon after the live event.

In order to participate in the real-time teleconference with live audio Q&A, participants in the U.S. should dial (888) 347-5307, participants in Canada should dial (855) 669-9657, and other international callers should dial (412) 902-4283.

Safe Harbor Statement

This press release contains forward-looking statements. These forward-looking statements are covered by the "Safe Harbor for Forward-Looking Statements" provided by the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "plan," "would," "could," "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, these assumptions are subject to significant risks and uncertainties, and are subject to change based on various factors, some of which are beyond Titan International, Inc.'s control. As a result, 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, the effect of a recession on the company and its customers and suppliers; changes in the company's end-user markets into which the company sells its products as a result of world economic or regulatory influences or otherwise; changes in the marketplace, including new products and pricing changes by the company's competitors; unfavorable outcomes of legal proceedings; availability and price of raw materials; levels of operating efficiencies; the effects of the company's indebtedness and its compliance with the terms thereof; the impact of any exercise of the settlement put option relating to the company's redeemable non-controlling interest in Voltyre-Prom; actions of domestic and foreign governments, including the imposition of additional tariffs; geopolitical and economic uncertainties relating to the countries in which the company operates or does business; risks associated with acquisitions, including difficulty in integrating operations and personnel, disruption of ongoing business, and increased expenses; fluctuations in currency translations; risks associated with environmental laws and regulations; risks relating to financial reporting, internal controls, tax accounting, and information systems; and the other risks and factors detailed in the company's periodic reports filed with the Securities and Exchange Commission, including the disclosures under "Risk Factors" in those reports. These forward-looking statements are made only as of the date hereof. 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, whether as a result of new information, changed circumstances or future events, or for any other reason.

About Titan

Titan International, Inc. (NYSE: TWI) is a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products.  Headquartered in Quincy, Illinois, the company globally produces a broad range of products to meet the specifications of original equipment manufacturers (OEMs) and aftermarket customers in the agricultural, earthmoving/construction, and consumer markets. For more information, visit www.titan-intl.com.

Titan International, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
Amounts in thousands, except per share data
	Three months ended								Six months ended
	June 30,								June 30,
	2018				2017				2018				2017
Net sales	$	428,904			$	364,399			$	854,286			$	721,900
Cost of sales	370,592				320,379				736,413				637,679
Gross profit	58,312				44,020				117,873				84,221
Selling, general and administrative expenses	36,699				34,463				72,620				75,801
Research and development expenses	2,754				2,608				5,631				5,451
Royalty expense	2,634				2,533				5,297				5,142
Income (loss) from operations	16,225				4,416				34,325				(2,173)
Interest expense	(7,672)				(7,320)				(15,190)				(15,041)
Foreign exchange loss	(3,610)				(5,257)				(8,042)				(767)
Other income	2,477 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 13:17 - dpa-AFX Sparkurs zeigt Wirkung: UPS schneidet nicht so schlecht ab wie befürchtet 07:29 - PR Newswire Norges Bank - Form 8.3 - International Paper Company Der KI-Boom ist vorbei!    Aber dieser heiße Sektor verspricht, weiter zu wachsen... weiterlesen» Anzeige wo-site-teaser-box-16737_site-teaser-box_2024-04-23_09%253A00%253A00_2024-04-24_09%253A00%253A59