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WEST CHICAGO, Ill. – Titan International , Inc. (NYSE: NYSE:), a key player in the manufacture of off-highway wheels, tires, assemblies, and undercarriage products, reported a notable beat in its fourth-quarter earnings, sending its shares soaring by 7.5%.
The company posted adjusted earnings per share (EPS) of $0.34, surpassing analysts’ expectations of $0.29. However, revenue for the quarter fell short of the consensus estimate, coming in at $390.2 million against an anticipated $426.82 million.
Titan’s President and CEO, Paul Reitz, attributed the strong bottom-line results to the company’s focus on margins and working capital management, which led to record free cash flow of $119 million. Reitz also highlighted the strategic acquisition of Carlstar Group LLC, which is expected to diversify Titan’s customer base, product line, and global manufacturing and distribution footprint.
For the fourth quarter ended December 31, 2023, Titan reported a decline in net sales compared to the same period in the previous year, which was primarily driven by a decrease in sales volume due to elevated inventory levels at OEM customers in the Americas and softer demand for small agricultural equipment. Despite these challenges, the company managed to maintain its gross margin percentage year-over-year (YoY), reflecting effective cost management and productivity initiatives.
Titan’s agricultural segment experienced a 29.9% decrease in net sales YoY, while the earthmoving/construction segment saw an 18.7% decline. The consumer segment’s net sales dipped by 1.6%. The company’s overall gross profit for the quarter was $58.3 million, compared to $76.7 million in the prior year.
Looking ahead, Titan has refrained from providing financial guidance due to the ongoing integration of Carlstar and the addition of new end markets. The company plans to issue financial guidance later in the year as the integration progresses.
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