Titan Machinery posted $278.3 million in the first quarter of fiscal 2020, compared to $243.7 million in the first quarter of fiscal 2019, a 14.2-percent increase. Equipment sales were $194 million compared to $167.8 million a year ago, a 15.6-percent jump. Revenue from “rental and other”, which is primarily rental, was $9.6 million for the quarter compared to $9 million a year ago, a 6.7-percent hike.
“We generated solid top and bottom line results during the fiscal first quarter by achieving healthy growth across all segments of our business despite challenging industry conditions that continue to persist,” said David Meyer, Titan Machinery chairman and CEO. “We are particularly pleased with strong increases in our higher margin parts and service businesses, in which sales grew double digits in the quarter. The solid performance in this area, combined with higher equipment sales, drove increased profitability across all segments versus the prior year period.”
Parts sales were $51.9 million for the first quarter of fiscal 2020, compared to $46.9 million in last year’s first, a 10.7-percent increase. Service revenue was $22.8 millioj for the first quarter of fiscal 2020, compared to $20 million in the year-ago frame, a 14-percent climb.
First quarter revenue for Titan Machinery’s Construction segment was $70.7 million, compared to $61 million a year ago, a 15.9-percent hike.
Titan’s International segment did well, with fiscal first quarter revenue of $53.8 million, compared to $40.7 million a year ago, a 32.2-percent leap. The primary contribution to the hike was revenue contributed by the company’s AGRAM business following its acquisition in the third quarter of fiscal 2019 and a same-store sales increase in its other international markets.
Titan expects its Agriculture segment to be flat during fiscal 2020, but it expects its Construction segment to rise 5 to 10 percent and its International segment to jump 10 to 15 percent.
Titan Machinery is a West Fargo, N.D.,-based equipment dealership with locations in North America and Europe. Titan is No. 53 on the RER 100.