Construction and agricultural equipment distributor Titan Machinery posted $345 million for the third quarter of fiscal 2016, compared to $493.1 million in the third quarter a year ago, a 30-percent decline. Revenue from “rental and other,” which is predominantly rental, declined from $26.6 in the year-ago quarter to $21.3 in the quarter ended Oct. 31, a 19.9-percent slide.
Gross profit for fiscal Q3 was $67.1 million, compared to $84.7 a year ago, primarily because of a drop in agriculture equipment revenue.
Total revenue was $1.03 billion for the first nine months of fiscal 2016, compared to $1.41 billion in the year-ago frame, a 27-percent drop.
“Our Agriculture segment sales continue to be impacted by ongoing industry headwinds, and our third quarter results also impacted by lower than expected contribution from our parts and service business as farmers throughout the Upper Midwest experienced relatively favorable harvest conditions that required minimal equipment maintenance. In addition, our Construction segment was impacted by lower oil prices and reduced demand for equipment from agricultural customers. Based on our year-to-date results and outlook for the fourth quarter, we are updating our annual modeling assumptions.”
The company expects that for fiscal 2016 construction same-store sales will be down 8 to 13 percent, and agricultural same-store sales will plunge 28 to 33 percent.
Titan Machinery is based in West Fargo, N.D.