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 Nov. 14, 2022 Source: Titan International news release Quarter Highlights *Net sales were $531 million, an $80 million (18%) YoY increase, the strongest Q3 sales level in TWI history Gross margin was 16.5% versus 13.4% a year ago *Free cash flow was $40 million in Q3 and $69 million YTD, a $34 million YoY increase for the quarter and a $96 million YoY increase for the year CHICAGO -- Titan International, Inc. (NYSE: TWI), a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products, today reported results for the third quarter ended September 30, 2022. "The Titan team continues to execute well throughout our businesses as we delivered a strong performance again this quarter," stated Paul Reitz, President and Chief Executive Officer. "This quarter we experienced sales growth of 18% compared to the third quarter last year that was supported with healthy volume gains. "I want to remind everyone that when looking at quarters sequentially our third quarter production days are impacted by our normal plant maintenance shutdowns and the traditional summer vacation in US and August holidays in Europe. With that being said, we delivered solid margins this period with adjusted EBITDA of $61 million this quarter that compares to $35 million last year. "This strong performance reflects all of our business units continuing to execute at a high-level. I've stated numerous times throughout the many global challenges of the past couple years that our Titan team has been exceptional with our determination and resilience, and we are proud of the results that we have produced. "Titan has significantly strengthened its financial position over the past two years and this quarter was no exception as we generated $40 million in free cash and have reduced our debt by $35 million this quarter. This reduces our net debt leverage to 1.4 times adjusted EBITDA. Our strong financial performance over the past couple years when combined with the improvements to our balance sheet and solid free cash flow generation, has meant that Titan has created tremendous shareholder value. "The business climate is swimming with noise these days, but if you sift through it you will find that Agriculture is standing on solid ground. We have continually stated that farmers are in a good financial position and the recent USDA reports illustrates that corn and soybean supply-demand will support good pricing into 2024, at a minimum. Farmers look at crop prices as one of the key indicators for purchasing new equipment. "That combined with pent-up demand from supply chain and labor disruptions at OEM's, along with continuing low levels of available used equipment, bodes well for 2023 large Ag demand. We believe that the bigger picture view is that large Ag remains in a solid position, and we expect the sector to work through current supply chain challenges with a bright future ahead. "Small Ag equipment inventory levels are starting to normalize to pre-Covid levels, while used small Ag prices remain well above those levels. However, inventory levels are still below historical norms and there is need to keep current production levels in order to normalize business conditions. We have a strong customer base in small Ag and will watch inventory and order levels closely as we prepare our 2023 operational plans." "Our 2022 expectations for sales, adjusted EBITDA and free cash flow represent the highest level achieved throughout our long history. With our performance through three quarters and our current visibility for the remainder of the year, we expect to finish the year at the top end of our previously communicated targets. We continue to believe the key elements are in place to drive continued positive momentum for the business." To read the entire report . Tweet |
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