Titan Int'l (TWI) Misses Q1 EPS by 9c

Titan Int'l (NYSE: TWI) reported Q1 EPS of ($0.17), $0.09 worse than the analyst estimate of ($0.08). Revenue for the quarter came in at $321.8 million versus the consensus estimate of $354.11 million.

CEO and Chairman, Maurice Taylor comments, "Titan's first quarter has been a story of continued weakness within each of our end markets, which is consistent with what has been widely discussed by many in our industry. While there have been few bright spots during the quarter, we continue to improve our operating performance despite these declines. The first quarter financial results are not what we expect; however, through our business improvement framework, we were able to improve our Ag segment gross profit by nearly 100 basis points despite a 21 percent reduction in sales.

"Our marketing focus continues to raise the awareness of our LSW® solution. Our conversations with farmers have changed from 'What is LSW?' to 'What LSW's do you have that will fit on my tractor?' This heightened awareness has translated to our Ag LSW program expanding to 18 major manufacturers with more than 200 different assembly part numbers. We expect this momentum to continue.

"The Special Committee of Titan's Board of Directors (the "Committee") engaged Goldman, Sachs & Co. as financial advisor in connection with the possible sale of Italtractor ITM S.p.A. ("ITM"). The Committee was impressed with the presentations from each investment bank that submitted a proposal and the choice was Goldman after a very competitive process. The Committee is pleased with the level of interest received from the parties that have contacted Titan thus far.

"There are many projects happening at Titan which we expect will ultimately increase shareholder value. On March 29, 2016, we had a ribbon cutting ceremony at Titan Tire Reclamation Corporation in the oil sands of Canada. All five of Canada's major mines were represented. Paul Reitz, President of Titan International, Inc., Derrick Trottier of Suncor, Chief Allan Adam of the Athabasca Chipewyan First Nation, and Tany Yao, Wildrose MLA for Fort McMurray-Wood Buffalo, officially cut the ribbon. Personnel have been hired and are going through special training with production ramping up over the next several weeks. We estimate on a daily basis this operation is capable of converting 240,000 pounds of scrap tires which is approximately 24 giant mining tires weighing 10,000 pounds each. Titan has signed contracts with two of the mines and believes the other mines in the region will follow in the near future. Titan has received inquiries as to when we are going to launch similar tire reclamation facilities in Chile and Australia. I believe that while this initial project has been great for Titan, we will need to focus on the longer term strategy for this business."

For earnings history and earnings-related data on Titan Int'l (TWI) click here.

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