Titan Machinery’s Revenue Down in Q2, Especially in Agriculture

Sept. 9, 2015

2 min read

Case is one of Titan Machinery39s leading brands — Case is one of Titan Machinery's leading brands.

Titan Machinery, a network of full-service agricultural and construction equipment dealerships posted $334.2 million in second quarter revenue compared to $451 million in the its fiscal second quarter of 2014 ended July 31, a 25.9-percent plunge. Revenue from rental and other, which is primarily rental, dropped to $18.3 million, compared to $21.9 million in the year-ago quarter, a 19.7-percent slide.

Gross profit for the second quarter of fiscal 2016 was $62.1 million, compared to $79.7 million a year ago, primarily because of a decrease in agriculture equipment revenue.

“Our financial performance in the second quarter was in-line with our expectations,” said David Meyer, Titan Machinery’s chairman and CEO. “Our Agriculture segment continues to be impacted by ongoing industry headwinds, and our Construction business, which faced strong year-over-year comparisons in the second quarter of fiscal 2016, was impacted by lower oil prices as well as reduced sales of construction equipment to agricultural customers. We are pleased to report second quarter pre-tax income for our International segment, reflecting the previously announced initiatives as well as slightly improved market conditions in some of the regions in which we operate.”

The company expects construction same store sales to be flat to 5-percent down for fiscal 2016, with a 20- to 25-percent drop in same-store sales in its agricultural business.

Titan Machinery, based in West Fargo, N.D., is No. 33 on the RER 100.

About the Author

Michael Roth

Editor

Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.