Titan International (NYSE: TWI) reported Q4 EPS of ($0.21), $0.16 worse than the analyst estimate of ($0.05). Revenue for the quarter came in at $363.4 million versus the consensus estimate of $385.07 million.

"When we take a step back and review the progress that Titan has made over the past couple years, we believe it's a really good story that we\'re proud of working hard to have accomplished," stated Paul Reitz, President and Chief Executive Officer. "This is evidenced in our 2018 net sales that came in above $1.6 billion with adjusted EBITDA of more than $119 million. In 2016, we ended the year under $1.3 billion in net sales and just over $47 million in adjusted EBITDA. Those figures represent top-line, organic growth of more than 26 percent along with an adjusted EBITDA increase of over two-and-one-half times over this two-year period. We have said it before, but it\'s worth repeating, the operational improvements and strategic investments in our existing business during this period and prior, are reflected in these improved financial results.

"For Titan and many other companies, there were many factors in 2018 impacting our business and creating an often volatile operating environment. These factors include the much discussed tariffs standoff, steel prices that reached the highest level in more than a decade and sluggish commodity prices continuing to impact farmers. Despite those challenges, in 2018 we were able to achieve double-digit revenue growth on a constant currency basis and we successfully leveraged that growth to drive a return to positive bottom-line earnings for the first time since 2013. Throughout the year our earthmoving/construction segment, particularly the ITM undercarriage business, led the way with full-year segment growth of 22 percent while also showing strong growth in margins and EBITDA.

"We did a good job in managing our business in 2018 and performed well compared to the financial outlook we previously provided. Net sales grew 9 percent during the year and would have been up over 11 percent excluding negative currency impacts, well within our expectations of 9 to 12 percent growth. Our SGARD expenses came in better than the outlook at slightly more than 9 percent of net sales, beating the low end of the target of 10 percent by more than $14 million. EBITDA was $107.9 million, reflecting a 98 percent improvement over 2017, and was within our outlook of an 80 to 100 percent increase over the previous year. Adjusted EBITDA was $119.1 million, which reflected a 64 percent increase when compared to the previous year. Gross profit improved 24 percent when compared to 2017, which was slightly under the lower end of the expected improvement range missing by just over $2 million, but still represented more than 28 percent incremental gross margin in a volatile operating environment."

"It was disappointing that we didn't achieve positive cash flow in 2018, despite the strong earnings growth, and that was directly attributable to increases in working capital, specifically growth in inventory," stated David Martin, Senior Vice President and Chief Financial Officer. "Earnings must be translated into cash flow in the business to continue to invest for profitable growth, and what we experienced in 2018 in working capital increases will not be the expectation moving forward. Our management team is focused on the strategies to manage working capital in a much stronger way. Specifically, we expect to strategically target increased inventory turnover in a number of areas of the business which should drive improved cash flow in 2019."

For earnings history and earnings-related data on Titan International (TWI) click here.