Mr. Taylor adds, “Innovation is critical in a downward market cycle and Titan has leveraged its entrepreneurship to grow the business. Titan’s new LSW tires and wheels are now being offered as an option for tractors, sprayers and combines by major OEM’s. Titan has established test sites at 180 farms for LSW tires and wheels, which I believe the time and investment will be repaid in the near future. We expect this business to gain traction and expand into all our regions in the next 3 to 4 years. You can visit Titan’s website, lswadvantage.com, to see the testimonials of end users who have experience with this new product. The expanded Grizz Squad marketing team will also begin calling on larger construction contractors in addition to farmers.”
“The oil sands are having a positive impact in the mining sector. This past month Titan announced the signing of a 10 year agreement with Suncor on the new process of TVR (Thermo Vacuum Reactor) which will recycle used OTR tires into 500 gallons of bio oil, carbon black and steel. Titan will continue to expand its Titan Mining Service business in efforts to grow our tire, wheel and track business.
“The farm outlook today is weak from many viewpoints, however, we believe this is a short term pause in the cycle. The large equipment purchases in the farming sector have declined double digits and tire prices have fallen due to lower raw material costs that we are required to pass on contractually to OEMs which negatively impacts our financial performance. Inventory at dealerships remains high but is trending lower each month.
“We have a lot to look forward to in the future amidst challenging conditions in our markets. Our passion for this business will continue to drive positive change.”
Excluding the impairment and inventory writedown mentioned above, gross profit for the second quarter would have been 11.0 percent and 10.5 percent year to date, respectively.
This press release includes forward-looking statements that involve risks and uncertainties, including risks as detailed in Titan International, Inc.’s periodic filings with the Securities and Exchange Commission. 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.
The SEC’s Regulation G applies to any public disclosure or release of material information that includes a non-GAAP financial measure. The non-GAAP financial measure should be considered supplemental to, not a substitute for, the financial measures calculated in accordance with GAAP. It has limitations in that it does not reflect all of the costs associated with the operations of our businesses as determined in accordance with GAAP. In addition, this measure may not be comparable to non-GAAP financial measures reported by other companies.
The non-GAAP financial measure of adjusted net income assists investors with analyzing our business results as well as with predicting future performance. In addition, this non-GAAP financial measure is reviewed by management in order to evaluate the financial performance of each segment as well as the company as a whole. We believe that the presentation of this non-GAAP financial measure will permit investors to assess the performance of the company on the same basis as management.
As a result, one should not consider this measure in isolation or as a substitute for our results reported under GAAP. We compensate for these limitations by analyzing results on a GAAP basis as well as a non-GAAP basis, prominently disclosing GAAP results and providing reconciliations from GAAP results to non-GAAP results.
SOURCE Titan International, Inc.