Titan International, Inc (TWI) saw its loss narrow to $9.95 million, or $0.21 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $31.48 million, or $0.79 a share. On the other hand, adjusted net loss for the quarter narrowed to $9.95 million, or $0.18 a share from a loss of $31.48 million or $0.59 a share, a year ago. Revenue during the quarter went down marginally by 0.86 percent to $306.20 million from $308.84 million in the previous year period. Gross margin for the quarter expanded 230 basis points over the previous year period to 10.77 percent. Operating margin for the quarter stood at negative 2.70 percent as compared to a negative 4.68 percent for the previous year period.
Operating loss for the quarter was $8.25 million, compared with an operating loss of $14.46 million in the previous year period.
Chief Executive Officer and Chairman, Maurice Taylor, comments, "The numbers are in and I believe they show our business continues to bounce around the bottom of this four year down cycle. The downturn in our Ag business has stabilized. The third quarter sales were $306 million compared with $309 million in 2015, so if you factor in the decrease in pricing, they're very close. Large Ag is still down while the lower horsepower tractors are up slightly."
Working capital declines
Titan International, Inc has witnessed a decline in the working capital over the last year. It stood at $381.26 million as at Sep. 30, 2016, down 20.36 percent or $97.44 million from $478.70 million on Sep. 30, 2015. Current ratio was at 2.02 as on Sep. 30, 2016, down from 2.76 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 60 days for the quarter from 114 days for the last year period. Days sales outstanding were almost stable at 61 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 47 days for the quarter compared with 97 days for the previous year period. At the same time, days payable outstanding went up to 49 days for the quarter from 43 for the same period last year.
Debt comes down marginally
Titan International, Inc has recorded a decline in total debt over the last one year. It stood at $501.12 million as on Sep. 30, 2016, down 2.41 percent or $12.36 million from $513.48 million on Sep. 30, 2015. Total debt was 38.31 percent of total assets as on Sep. 30, 2016, compared with 38.41 percent on Sep. 30, 2015. Debt to equity ratio was at 1.56 as on Sep. 30, 2016, up from 1.24 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
