QUINCY, Ill., April 30, 2015 /PRNewswire/ -- Titan International, Inc. (NYSE: TWI) announces first quarter revenue and performance results.

First quarter highlights:

• Sales for the first quarter of 2015 were $402.1 million down 25.4 percent, compared to $538.9 million in the first quarter of 2014.
• Gross profit for the first quarter of 2015 was $42.8 million, or 10.6 percent of net sales, compared to $54.6 million, or 10.1 percent of net sales for the first quarter of 2014.
• Income from operations for the first quarter of 2015, was $0.8 million, or 0.2 percent of net sales, compared to income of $0.3 million, or 0.0 percent of net sales, for the first quarter of 2014.
• Adjusted net income for the first quarter was $0.7 million, compared to $2.2 million in the first quarter of 2014 (see Appendix attached).
• Adjusted basic earnings per share for the first quarter 2015 and 2014 were $0.01 and $0.04 respectively, and adjusted fully diluted earnings per share were $0.01 and $0.04 respectively (see Appendix attached).

Statement of Chief Executive Officer:

CEO and Chairman, Maurice Taylor comments, "The first quarter demonstrates that the initiatives undertaken by Titan last year were the appropriate actions and should pay dividends as we go forward. North America large agriculture is down approximately 35 percent, and we believe it will remain that way for the balance of 2015. We also believe our market share will continue to grow as Titan's recently introduced products gain further momentum. Titan's first quarter sales were below our internal plan, but well over half of the decrease was due to currency impacts from Europe, South America, Russia and Australia. With EBITDA at $27.6 million this quarter, we exceeded our internal plan expectation. We were able to maintain a cash balance of $190.6 million despite a seasonal increase in working capital accounts of $26.1 million.

"Titan's Grizz Squad has been expanded and the interest in LSW® tires and wheels is growing each month. In addition to North America, Titan will soon be expanding the Grizz Squad within South America, Europe and Russia. Looking at the next few quarters, the smaller ag market should remain steady along with the shortliners.

"We expect growth in our ATV and special markets with the run flat tires produced under the Goodyear® brand. We believe that construction market will also remain steady, and we expect to grow sales within our LSW tires and wheels. The mining business has stabilized and our underground tire and wheel business is starting to expand. We expect our track and brake business produced by ITM will grow throughout 2015. ITM has made a strong effort to grow aftermarket replacement business within track components.

"Titan has reduced its fixed cost structure and improved productivity at our manufacturing facilities to mitigate the negative impact of existing and future market downturns. We will proactively monitor for changes in our business and adapt appropriately. The management team is focused on enhancing business performance and building our brand through meeting our customers' needs. Titan's LSW technology enhances both the productivity and performance of every tractor, combine, sprayer, loader and articulated dump truck. We have consistently experienced, upon demonstrating the superior attributes of the LSW solution, that our customers will pull it through the market. As we grow the market with the Goodyear Farm Tires coupled with LSW technology, both our market share and margins will improve. We fully anticipate this same result as the Titan LSW solution penetrates the construction and mining markets. I encourage those that are not familiar with LSW to visit our LSW website (LSWAdvantage.com) for videos and testimonials from actual users."

Financial Summary:

Sales: Net sales for the quarter ended March 31, 2015, were $402.1 million compared to $538.9 million in 2014, a decrease of 25%. Overall sales experienced reductions in volume of 10% and price/mix of 6% as the agriculture market remains in a cyclical downturn. Reduced farm incomes result in lower demand for new equipment, primarily high horsepower agricultural equipment. These decreases were partially offset by increased demand for products used in the construction industry. In addition, competitive pressures and lower raw material prices, particularly in tire manufacturing, negatively impacted sales. Unfavorable currency translation decreased sales by 9%.

Gross profit: Gross profit for the first quarter of 2015 was $42.8 million, or 10.6% of net sales, compared to $54.6 million, or 10.1% of net sales for the first quarter of 2014. Decreased demand for high horsepower agricultural equipment, driven by a cyclical downturn, negatively impacted gross profit. Generally, there are higher margins associated with this product category. The lower market demand also drove competitive pressures that further deteriorated both sales and gross margin in the agricultural segment. Lost fixed cost leverage and reduced productivity in the manufacturing facilities are also consequences of lower sales and production volumes. In the earthmoving/construction segment, sales were lower in the first quarter of 2015, compared to 2014. However, gross margin and income from operations were substantially improved. This was driven by increased productivity and reduced costs.

Warranty Expense: The provision for warranty liability was $2.5 million at March 31, 2015 or 0.6 percent of sales compared to $5.3 million at March 31, 2014 or 1.0 percent of sales.

Selling, general and administrative expenses: Selling, general and administrative (SG&A) expenses for the first quarter of 2015 were $35.7 million, or 8.9% of net sales, compared to $46.8 million, or 8.7% of net sales, for 2014. SG&A as a percentage of sales was consistent for the first quarter of 2015, when compared to 2014. Selling expense decreased approximately $4 million, or 26%, from the first quarter of 2014. This percentage decrease is comparable to the overall sales decrease of 25%. Currency translation, reduced labor costs, and lower information technology expenses also contributed to the lower SG&A expenses.

Income from operations: Income from operations for the first quarter of 2015, was $0.8 million, or 0.2% of net sales, compared to $0.3 million, or 0.0% of net sales, in 2014. This increase was the net result of the items previously discussed.

Interest expense: Interest expense was $8.8 million and $9.3 million for the quarters ended March 31, 2015, and 2014, respectively. Interest expense for the first quarter of 2015 decreased primarily as a result of decreased interest expense at Titan Europe.

Earnings per share: For the quarters ended March 31, 2015 and 2014, basic earnings per share were $.00 and $.04, respectively, and diluted earnings per share were $.00 and $.04, respectively. On an adjusted basis (see Appendix attached) basic earnings per share for the quarter ended March 31, 2015 and 2014 were $0.01 and $0.04, respectively, and diluted earnings per share were $0.01 and $0.04 respectively.

Capital expenditures: Titan's capital expenditures were $11.4 million for the first quarter of 2015 and $16.8 million in the first quarter of 2014.

Debt balance: Total long term debt balance was $493.8 million at March 31, 2015 compared to $496.5 million on December 31, 2014. Short-term debt balance was $29.8 million at March 31, 2015, and $26.2 million at December 31, 2014. Net debt (debt less cash and investments) was $333.0 million at March 31, 2015, compared to $321.3 million at December 31, 2014.

Equity balance: The company's equity was $543.4 million at March 31, 2015, compared to $590.1 million at December 31, 2014.

First Quarter Conference Call:

Titan will be hosting a conference call and webcast for the first quarter earnings announcement at 9 a.m. Eastern Time on Thursday, April 30, 2015. To participate in the conference call, dial (877) 870-4263 five minutes prior to the scheduled time. International callers dial (412) 317-0790; Canada (855) 669-9657. The call will be webcast and can be accessed at titan-intl.investorroom.com/webcasts_and_presentations.

Safe harbor statement:

Certain statements and information in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "plan," "would," "could," "outlook," "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, 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 risks as detailed in Titan International, Inc.'s periodic filings with the Securities and Exchange Commission, including the annual report on Form 10-K for the year ended December 31, 2014. 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.

Company description: Titan International Inc. (NYSE: TWI), a holding company, owns subsidiaries that supply wheels, tires, assemblies and undercarriage product for off-highway equipment used in agricultural, earthmoving/construction and consumer (including all terrain vehicles) applications.

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SOURCE Titan International, Inc.