Titan Machinery posted revenue of $330.3 million for the third quarter of fiscal 2018, compared to $332.3 million in the third quarter of 2017, essentially flat. Revenue from rental and “other” was $18.1 million for the third quarter of fiscal 2018, compared to $17 million for the third quarter of fiscal 2017, a 6.5-percent increase. Equipment sales were $216 million for the quarter compared to $212.2 million in the third quarter a year ago.
Gross profit for the third quarter of fiscal 2018 was $61.5 million, compared to $58.4 million the third quarter last year, a 5.3-percent hike.
“Overall, third quarter financial results showed solid improvement compared to the prior year as we continue to generate increased equipment margins and drive down our operating and interest expenses,” said David Meyer, Titan Machinery’s chairman and CEO. “These results are due to a better aligned inventory position, cost savings from our recently implemented restructuring plan, improved customer sentiment in our Agriculture segment and continued growth in our International segment.”
Titan’s Construction segment posted third fiscal quarter revenue of $72.9 million, compared to $80.8 million in the third quarter a year ago, a 9.8-percent slide.
For the first nine months of the fiscal year, total revenue was $863.3 million, compared to $895.5 million a year ago, a 4-percent decrease.
“We have made improvements to our cost structure during fiscal 2018, and this is reflected in our improved financial results for the first nine months of this year,” Meyer said. “We expect continued year-over-year net income improvements for our fourth quarter of fiscal 2018 as well.”
For the first nine months of the fiscal year, Titan Machinery posted $43.9 million in rental and “other” revenue, flat year over year.
Titan Machinery, based in West Fargo, N.D., is a global dealership with full-service agricultural and construction stores, including rental services. The company has U.S. locations in North and South Dakota, Iowa, Minnesota, Montana, Nebraska, Wyoming, Wisconsin, Colorado, Arizona and New Mexico, with European locations in Romania, Bulgaria, Serbia and Ukraine. It represents CNH Industrial Brands and more.
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.