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Mar 31, 2020
Titan Q1 2020 Earnings Report
Titan International experienced a sales decline in all segments due to the impact of COVID-19 and weakness in the commodity and construction markets.
Key Takeaways
Titan International reported a net sales decrease of 16.8% year-over-year to $341.5 million, driven by lower volume across all segments, especially in earthmoving/construction. The company experienced a net loss of $25.5 million, or $(0.42) per share, compared to a net income of $1.2 million, or $0.02 per share, in the prior year. Adjusted EBITDA was $9.3 million, compared to $19.8 million in the same period last year.
Net sales decreased by 16.8% year-over-year to $341.5 million, with a 12.6% decline in sales volume.
Net loss attributable to Titan was $25.5 million, or $(0.42) per share, compared to a net income of $1.2 million, or $0.02 per share, in the prior year.
Adjusted EBITDA was $9.3 million, a decrease from $19.8 million in the same period last year.
The company is taking cost control and cash preservation measures to mitigate the impact of COVID-19.
Forward Guidance
While the current volatility and uncertain demand outlook implies a sales decline from our 2019 levels, we currently anticipate EBITDA will approximate 2019 levels.
Positive Outlook
- Taking steps to maintain EBITDA in a down market
- Aligning production and costs with the current business environment.
- Swift and decisive actions to reduce costs and to preserve liquidity
- Cutting discretionary spending
- Adjusting work schedules
Challenges Ahead
- Current volatility and uncertain demand outlook implies a sales decline from 2019 levels
- Dynamic and fluid situation with customers as they shift schedules
- Customers are providing limited visibility into their plans for the second half of the year.
- The COVID-19 pandemic continues to create a dynamic and fluid situation
Historical Earnings Impact
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Avg. Return Before/After Earnings
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