Earnings Results to Track: Titan International, Inc. (NYSE-TWI)

Shares of Titan International, Inc. (NYSE-TWI) closed the trading at a price of $4.3800 with the positive/negative change of -2.01%. In the past session approximately 314,029 shares were exchanged against the average daily trading volume of 504,614 shares. The stock touched to the maximum level of $4.4800, and it reached the lower level of $4.3200 in past session.

Titan International, Inc. (TWI) recently stated results for the fourth quarter and year ended December 31, 2018.

Summary of Operations

Net sales for the fourth quarter ended December 31, 2018, were $363.4M, a decrease of 3.4 percent from $376.0M in the comparable previous year period, driven by reduced net sales in the agricultural and consumer sections, offset by raises in the earthmoving/construction section. Overall net sales volume was essentially flat contrast to the same quarter a year ago, while favorable changes in price/mix positively influenced net sales by 2.2 percent. Unfavorable currency translation negatively influenced net sales by 5.4 percent, particularly in Latin America.

Net sales for the year ended December 31, 2018, were $1.60B, contrast to $1.47Bin the comparable previous year period, an raise of 9.1 percent, primarily resulting from an raise in net sales volume in all sections. The raise reflects general market improvements in the agricultural and construction sectors, coupled with market share raises, particularly in the undercarriage mining sector during 2018. Overall net sales volume raised 7.7 percent. Favorable changes in price/mix contributed a 3.6 percent raise in net sales, partially offset by unfavorable currency translation which reduced net sales by 2.2 percent.

Gross profit for the fourth quarter ended December 31, 2018, was $36.7M, contrast to $36.0M in the comparable previous year period.  Gross margin was 10.1 percent of net sales for the recent quarter, contrast to 9.6 percent of net sales in the comparable previous year period.  During the fourth quarter of 2017, the Company recorded an asset impairment of $9.9M related to a fire at one of its subsidiaries.  Not Including the asset impairment, gross profit for the fourth quarter of 2017 would have been $45.9M, or 12.2 percent of net sales.  The lower gross profit margin in the fourth quarter of 2018, relative to the comparable quarter in 2017 not including the asset impairment, related primarily to lower aftermarket sales in North America which carry stronger gross margins.

Gross profit for the year ended December 31, 2018, was $198.3M contrast to $160.3M in the comparable previous year period.  Gross margin was 12.4 percent of net sales for the year ended 2018, contrast to 10.9 percent of net sales in the comparable previous year period. Not Including the asset impairment, gross profit for 2017 would have been $170.2M, or 11.6% of net sales. The raise in gross profit was driven by raised sales volume and production efficiencies, partially offset by higher material costs.

The fourth quarter 2018 net loss applicable to ordinary shareholders was $13.4M, equal to $(0.22) per basic and diluted share, contrast to a loss of $32.7M, equal to $(0.55) per basic and diluted share, in the comparable previous year period. Net income applicable to ordinary shareholders for the year ended 2018 was $3.9M, equal to $0.06 per basic and diluted share, contrast to a loss of $66.4M, equal to $(1.12) per basic and diluted share, in the previous year.

The fourth quarter 2018 adjusted net income attributable to Titan was $12.3M, equal to $(0.21) per basic and diluted share, contrast to a loss of $5.7M, equal to $(0.10)per basic and diluted share, in the comparable previous year period. Adjusted net income for the year ended December 31, 2018, attributable to Titan was $16.1M, equal to $0.27 per basic and diluted share, contrast to a loss of $28.9M, equal to $(0.49) per basic and diluted share, in the comparable previous year period. The Company utilizes adjusted net income (loss) attributable to Titan, a non-GAAP financial measure, as a means to measure its operating performance. A reconciliation of adjusted net income (loss) attributable to Titan to net income (loss) applicable to ordinary shareholders can be found at the end of this release.

EBITDA was $10.8M for the fourth quarter of 2018, contrast to $10.2M in the comparable previous year period.  EBITDA was $107.9M for the year ended December 31, 2018, contrast to $54.4M in the comparable previous year period, which was primarily attributable to the business growth discussed above coupled with the absence of adjustments incurred in 2017.

The Company has 59.87 million shares outstanding and 57.70 million shares were floated in market. The short ratio in the company’s stock is documented at 2.18 and the short float is around of 1.92%. The average true range of the stock is observed at 0.27 and the relative strength index of the stock is recorded at 22.16.

 

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