Titan Machinery Posts Flat Revenue in Fiscal Third Quarter
Titan Machinery, an agricultural and construction equipment dealership, posted $360.9 million in total revenue for its fiscal third quarter ended Oct. 31, flat compared to $360.9 million for the same period in 2018. Equipment sales totaled $246 million compared to $253.8 million last year, a 3.1-percent decline. Rental and other revenue, primarily rental, totaled $16.6 million for the fiscal third quarter, compared to $17.7 million a year ago, a 6.2-percent drop. Revenue improved in parts and service for Titan, which is primarily a Case equipment dealer.
For the first nine months of the fiscal year, revenue totaled $954.2 million compared to $901.9 million a year ago, a 5.8-percent increase. Equipment sales totaled $654.4 million compared to $625.2 million in the year-ago period, a 4.7-percent increase. Rental and other was $40.7 million compared to $41.7 million last year, a 2.4-percent slide.
Gross profit for the third quarter of fiscal 2020 was $71.8 million compared to $69.5 million in the year-ago quarter. Gross profit margins increased 60 basis points to 19.9 percent versus the same period last year.
“Our higher margin parts and service business experienced strong growth during the seasonally important third quarter and drove higher gross profits across all three of our segments,” said David Meyer, Titan Machinery’s chairman and CEO. “This strong parts and service activity helped generate solid performance in our Agriculture segment, which grew top and bottom line despite very difficult harvest conditions and persistent macroeconomic uncertainty. While we wait for the environment to stabilize, we remain focused on providing exceptional customer case and managing the controllable aspects of our business, which poises us well for growth and enhanced profitability once industry conditions improve.”
Titan Machinery, based in West Fargo, N.D., is No. 53 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.