Titan International has posted second quarter sales down 12% to US$330m, while gross profit also fell from US$51m to US$45m.
Income from operations for the second quarter of 2016 was US$4m or 1.2% of net sales, compared to income of US$7.5m, or 2% of net sales.
Net loss applicable to common shareholders was US$3.8m compared to net income of US$9.4m in the second quarter of 2015.
Adjusted net loss was US$1.9m, compared to net income of US$1m last year.
“Second quarter has some good news, some not so good news and some great reasons to be optimistic,” said TITAN CEO and chairman, Maurice Taylor. “TITAN has seen an increase in our cash balance. Our sales in the under 100 HP tractors are holding up well. The market for high horsepower tractors and combines continue to decline in North America, but in talking with equipment dealers, they have been moving used equipment and look forward to an uptick this fall.
“TITAN has seen an uptick in construction and forestry tyre sales for our aftermarket customers. I believe the agriculture market is at or near the bottom and we expect to gain business from our competitors.
“TITAN Tire Reclamation Corp (TTRC) is expected to be in full production by late August. We had planned to be running in April, but obtaining the permits and training requirements took longer than expected. Then the great forest fires of Fort McMurray occurred which shut everything down until July. “TTRC will be filing a business interruption insurance claim which could offset a portion of the costs associated with the delays.
“We continue working to lower our production costs of wheels and tyres. This will come from operations as well as our selling, general and administrative expenses.
“As previously announced, Goldman, Sachs & Co. has been engaged as financial advisor to the Special Committee of TITAN ‘s Board of Directors in connection with the possible sale of TITAN ‘s subsidiary Italtractor ITM .
“The Special Committee is doing their job and I believe the Board of Directors would consider a sale of ITM as we continue to focus exclusively on our core business of wheels and tyres.”