Because of softness in the agricultural segment, Titan Machinery’s revenue declined in the second quarter of fiscal 2015, with revenue of $451 million, compared to $488.2 million in fiscal second quarter of 2014, a 7.6-percent decrease. Equipment sales dropped from $358.4 million to $320.1 million. However, revenue from rental and other, which is primarily rental, increased to $21.9 million for the quarter compared to $19.3 million for the year-ago quarter, a 13.5-percent leap.
Gross profit for the second quarter of fiscal 2015 was $79.7 million, compared to $83.5 million in the year-ago frame.
For the six months ended July 31, revenue was $916.5 million, compared to $929.9 million a year ago.
“In the second quarter, we remained focused on executing on our key initiatives,” said Titan Machinery chairman and CEO David Meyer. “Following the realignment and consolidation of our Construction segment earlier this year, we are pleased to report top line growth and pre-tax income profitability in this segment of our business in the second quarter. We believe we have taken the necessary steps to position our Construction business for long-term growth. In addition, we remain encouraged by steady improvements in the overall construction industry, particularly in our key markets.”
Meyer told an investor conference call he had high expectations for the continued growth of Titan’s rental division.
“The housing industry is rebounding with permits increasing across our footprint, which is a positive indicator of our medium and light equipment product offerings,” he said. “We expect growth in the rental equipment demand in our footprint to be aligned with industry forecast of approximately 10-percent growth in calendar year 2014, which is being fueled by factors I just mentioned.”
For the first six months of Titan’s fiscal year, “rental and other” revenue totaled $36.9 million, compared to $31.4 million for the same February through July period a year ago, a 17.5-percent climb.
Based in West Fargo, N.D., Titan Machinery is No. 31 on the RER 100.