QUINCY, Ill.—Titan International Inc. reported double-digit declines in operating and net income for the quarter ended March 31 on 3.5 percent lower sales.
Titan cited lower sales volumes in Europe and Russia, currency devaluations and higher inventory costs for the lower earnings. Titan's pre-tax operating income (EBITDA) fell 32.9 percent to $25.5 million while sales fell to $410.4 million, dropping the operating ratio nearly three points to 6.2 percent.
Net income applicable to common shareholders fell 92.2 percent to $1.2 million.
Favorable changes in the price/mix component enhanced sales by 5.8 percent, Titan said, but this gains was offset by unfavorable currency translation of 5.8 percent of net sales. Titan reported lower sales in each of its segments—agricultural, earthmoving and consumer—for differing reasons.
"The first quarter of 2019 was certainly not the start to the year we had planned," Titan President and CEO Paul Reitz said, noting that currency headwinds had a particularly heavy impact on a company of Titan's size.
Titan's expectations for the agricultural sector were adversely affected by reduced farmer confidence, driven by continued lower commodity prices and ongoing trade concerns. These factors were exacerbated by a delayed planting season in the U.S. Midwest due to adverse weather conditions, Reitz said.