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TWI NYSE· Titan International, Inc
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TWI NYSE· Titan International, Inc
Earnings report Q3 2023

Titan International, Inc. Reports Decrease in Net Sales for Latest Quarter

Segments of revenue

Titan International, Inc. reported net sales of $401.8 million for the latest quarter, representing a decrease of 24.3% compared to the same period last year. The revenue was generated from three segments: Agricultural, Earthmoving/Construction, and Consumer. The Agricultural segment contributed the highest net sales of $213.0 million, followed by the Earthmoving/Construction segment with $155.0 million, and the Consumer segment with $33.8 million.

Strengths

Despite the decrease in net sales, Titan International, Inc. demonstrated strength in its Consumer segment. The company reported gross profit of $6.8 million from this segment, resulting in a profit margin of 20.1%. Management attributed the decrease in net sales in the Consumer segment to lower sales volumes in Latin America for light utility truck tires, driven by softer economic conditions in the region and elevated customer inventory levels. Additionally, negative price/product mix from lower raw material and other input costs, foreign currency translation, and the effects of the disposed Australian business also impacted net sales.

Challenges

Titan International, Inc. faced challenges in its overall net sales performance, with a decrease of 24.3% compared to the same period last year. The company's gross profit also decreased by 24.6%, resulting in a profit margin of 16.4%. This decline can be attributed to lower sales volumes and negative price/product mix in the Consumer segment, as well as certain personnel-related inflationary cost impacts.

Noteworthy

Titan International, Inc. experienced a significant decrease in income from operations, which declined by 46.6% compared to the same period last year. This decrease can be attributed to the challenges faced in the net sales performance and the impact of certain personnel-related inflationary cost impacts.

Summary

Titan International, Inc. reported a decrease in net sales for the latest quarter, primarily driven by lower sales volumes and negative price/product mix in the Consumer segment. Despite this, the company demonstrated strength in its Consumer segment with a profit margin of 20.1%. However, challenges were faced in the overall net sales performance, resulting in a decrease in gross profit and income from operations. Management highlighted the impact of softer economic conditions in Latin America and elevated customer inventory levels as contributing factors to the decline in net sales.

Source documents

Form 10-Q  filed on Nov 01, 2023
89 pages scanned

Reference data

Company financials Q3 revenue 402M
Analyst estimates Q3 EPS beat by 11.54%
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