QUINCY, Ill.—Titan International Inc. reported a loss from operations of $7.9 million in the quarter ended March 31, as sales fell 20 percent amid continued weakness in the firm's end markets.
The loss from operations compared with income of $800,000 in the first quarter of 2015, but is the third consecutive quarter with a loss from operations for the Quincy-based tire and wheel maker.
Titan also reported an adjusted net loss for the quarter of $9.2 million, compared with net income of $3.2 million a year ago. Sales revenue dropped to $321.8 million on 11-percent declines in volume in the agricultural and earthmoving/construction segments, which Titan portrayed as in a cyclical downturn.
Unfavorable currency translation affected sales by 6 percent and a reduction in price mix of 3 percent further eroded sales, Titan said.
Maurice Taylor, Titan chairman and CEO, pointed to a few bright spots despite the losses, such as an improvement in agricultural segment gross profit by nearly 100 basis points despite a 21-percent drop in sales.
Moving forward, Titan continues to focus its marketing efforts on raising awareness of its low sidewall solution (LSW), where it claims to have expanded LSW options to 18 major vehicle manufacturers with more than 200 different assembly part numbers.
In a conference call with analysts, Taylor said Titan is developing tire and wheel sizes for smaller-sized tractors—those up to 125 horsepower—demand for which has been real steady.
Titan disclosed in connection with the earnings that John Hrudicka was promoted to senior vice president of operations, a new position that's focused principally on the North American business.