Titan International Q2 Profit Falls, Revenue Climbs - Update

(RTTNews) - Titan International Inc. (TWI) Wednesday reported lower profit for the second quarter, as increased costs and the absence of last year's supply agreement termination income more than offset higher revenues. The stock fell over 5 percent in after-market trading.

Titan is a holding company that owns subsidiaries which supply wheels, tires, assemblies and undercarriage product for off-highway equipment used in agricultural, earthmoving/construction and consumer applications.

Net income attributable to the company fell to $23.22 million from $44.06 million. Earnings per share dropped to $0.40 from $0.84.

The prior-year results benefited from a supply agreement termination income of $26.1 million.

Adjusted earnings per share were $0.24, while it totaled $0.56 last year. On average, 5 analysts polled by Thomson Reuters expected earnings of $0.47 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales climbed 29.2 percent to to $593.29 million from $459.23 million, helped by recent acquisitions. Analysts expected revenues of $597.82 million.

Cost of sales climbed 34 percent to $506.64 million. According to the company, there has been a negative impact on pricing in all its markets due to raw material price decreases passed along to customers along with excess supply of product.

TWI fell 2.7 percent to close at $17.38 on Wednesday. The stock fell 5.1 percent in the extended trade.