Titan International, Inc. (TWI) Misses Q3 EPS by 3c; Adjusts Generation 1 Inventory Reserves
Titan International, Inc. (NYSE: TWI) reported Q3 EPS of $0.34, $0.03 worse than the analyst estimate of $0.37. Revenue for the quarter came in at $398.8 million versus the consensus estimate of $376.19 million.
From the release:
"As mentioned in a Form 8-K we filed today, the Company was notified on October 25, 2011 by its independent registered accountants that the estimated inventory reserves for the Generation 1 super giant (“Gen 1”) needed to be restated. The Company’s management and Audit Committee discussed the matter, even though the Company felt that the Gen 1 tires have a potential market to be sold in the future, it was concluded that the estimated reserve for Gen 1 tires would be increased by an estimated $9.8 million in the fourth quarter for 2010. The estimated $9.8 million will be restated as of December 31, 2010 in the 2010 Form 10-K and the Form 10-Qs’ for March 31, 2011 and June 30, 2011. The additional reserve reduces the net inventory value on Gen 1 tires to a non-material amount of approximately $0.7 million. The company expects to file by November 9, 2011, or as soon as practicable thereafter the above referenced restated consolidated financial statements."
From the release:
"As mentioned in a Form 8-K we filed today, the Company was notified on October 25, 2011 by its independent registered accountants that the estimated inventory reserves for the Generation 1 super giant (“Gen 1”) needed to be restated. The Company’s management and Audit Committee discussed the matter, even though the Company felt that the Gen 1 tires have a potential market to be sold in the future, it was concluded that the estimated reserve for Gen 1 tires would be increased by an estimated $9.8 million in the fourth quarter for 2010. The estimated $9.8 million will be restated as of December 31, 2010 in the 2010 Form 10-K and the Form 10-Qs’ for March 31, 2011 and June 30, 2011. The additional reserve reduces the net inventory value on Gen 1 tires to a non-material amount of approximately $0.7 million. The company expects to file by November 9, 2011, or as soon as practicable thereafter the above referenced restated consolidated financial statements."