Titan Machinery turned in a 24.1-percent revenue decline in the first quarter of fiscal 2016 ended April 30, with $353.2 million in revenue compared to $465.5 million in the first quarter of fiscal 2015. Revenue from “rental and other,” which is mostly rental, declined from $15 million in the year-ago quarter to $13.8 million, an 8-percent plunge.
Parts sales were $61.5 million for the recently concluded quarter, compared to $68.4 million a year ago, and revenue from service declined from $37.1 million to $32.9 million. Gross profit was $60.4 million, compared to $75.9 million a year ago, primarily reflecting a decrease in agriculture equipment revenue.
“Our financial results in the first quarter were in line with our expectations, as ongoing headwinds in the agriculture industry continue to impact our results,” said David Meyer, Titan Machinery’s chairman and CEO. “In the first quarter, we remained focused on managing the controllable aspects of our business, including implementing a realignment plan that significantly reduces our operating costs and is expected to generate approximately $20 million in cost savings beginning in the current fiscal year. We also continue to diligently manage our inventory levels and expect to achieve meaningful reductions in fiscal 2016.”
Titan said its construction dealership same-store sales were flat year over year, which agriculture same-store sales dropped 20 to 25 percent.
Titan Machinery was founded in 1980 and is headquartered in West Fargo, N.D., and owns and operates a network of full-service agricultural and construction equipment stores in the United States and Europe. The dealerships represent CNH Industrial brands such as CaseIH, New Holland Agriculture, Case Construction, New Holland Construction, and CNH Capital. Titan is No. 33 on the new RER 100
