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

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.