Titan International Inc (TWI) Q3 2024 Earnings Call Highlights: Navigating Market Challenges ...

GuruFocus.com11-01

Revenue: $448 million in the third quarter. Adjusted EBITDA: $20 million for the third quarter. Free Cash Flow: $42 million in the third quarter. Adjusted Gross Margin: 13.3% compared to 16.4% a year ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTitan International Inc (TWI) Q3 2024 Earnings Call Highlights: Navigating Market Challenges ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-01 23:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/titan-international-inc-twi-q3-150052286.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: $448 million in the third quarter.\nAdjusted EBITDA: $20 million for the third quarter.\nFree Cash Flow: $42 million in the third quarter.\nAdjusted Gross Margin: 13.3% compared to 16.4% a year ...</p>\n\n<a href=\"https://finance.yahoo.com/news/titan-international-inc-twi-q3-150052286.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"TWI","symbol_name":"泰坦国际","start_time":0,"source_url":"https://finance.yahoo.com/news/titan-international-inc-twi-q3-150052286.html","article_id":"2480619838","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/uHqYVIYv8iSioEDyt6PpdA--~B/aD0yNjA7dz0yNjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/b2a37b52c0c754538b7a54aba4361bcd"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2480619838","pubTimestamp":1730473252,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Adjusted EBITDA: $20 million for the third quarter.Free Cash Flow: $42 million in the third quarter.Adjusted Gross Margin: 13.3% compared to 16.4% a year ago.Segment Margins: AG at 9.6%, E MC at 8.6%, Consumer at 22.9%.SG&A Expense: $50 million or 11.1% of sales, up from $34 million last year.R&D Expenses: $4.2 million in the third quarter, up from $3.2 million a year ago.Operating Cash Flow: $60 million in the third quarter.Net Debt: $291 million or 1.9 times trailing 12-month adjusted EBITDA.Share Repurchase: Over 1 million shares repurchased for $8.3 million in the quarter.Q4 Adjusted EBITDA Guidance: $0 to $10 million.GuruFocus has detected 5 Warning Sign with NSIT.For the complete transcript of the earnings call, please refer to the full earnings call transcript.Titan International Inc  maintained gross margins above levels from prior downturns despite challenging market conditions.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"TWI":"泰坦国际"},"translate_title":"泰坦国际公司(TWI)2024年第三季度收益看涨期权亮点：应对市场挑战...","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TWI":1},"content_text":"Revenue: $448 million in the third quarter.\nAdjusted EBITDA: $20 million for the third quarter.\nFree Cash Flow: $42 million in the third quarter.\nAdjusted Gross Margin: 13.3% compared to 16.4% a year ago.\nSegment Margins: AG at 9.6%, E MC at 8.6%, Consumer at 22.9%.\nSG&A Expense: $50 million or 11.1% of sales, up from $34 million last year.\nR&D Expenses: $4.2 million in the third quarter, up from $3.2 million a year ago.\nOperating Income: $2.8 million for the quarter.\nOperating Cash Flow: $60 million in the third quarter.\nNet Debt: $291 million or 1.9 times trailing 12-month adjusted EBITDA.\nShare Repurchase: Over 1 million shares repurchased for $8.3 million in the quarter.\nQ4 Revenue Guidance: $375 to $425 million.\nQ4 Adjusted EBITDA Guidance: $0 to $10 million.\nQ4 Free Cash Flow Guidance: Approximately break-even.\n\n\nWarning! GuruFocus has detected 5 Warning Sign with NSIT.\n\nRelease Date: October 31, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nTitan International Inc (NYSE:TWI) maintained gross margins above levels from prior downturns despite challenging market conditions.\nThe company continues to deliver free cash flow above guided levels, demonstrating strong financial management.\nTitan's innovative products, such as LSW tires and VPO technology, are well-received in the market, offering significant fuel savings and improved performance.\nThe acquisition of Carl Star has brought diversification and synergy opportunities, particularly in the aftermarket and consumer segments.\nTitan is actively pursuing growth opportunities in the military market and expanding its product portfolio through strategic supplier partnerships.\n\n Negative Points \n\nCustomer demand was weaker than anticipated, impacting the company's bottom line due to reduced fixed cost absorption.\nThe agricultural market is experiencing a deep cyclical bottom, with farmer incomes under pressure and inventory destocking affecting sales.\nInterest rates remain high, dampening demand for consumer products like recreational vehicles and riding mowers.\nThe company's effective tax rate is elevated due to foreign tax expenses and limitations on interest expense deductibility.\nOperating margins in the AG and E MC segments are lower than usual due to low plant volumes and increased material costs.\n\n Q & A Highlights \nQ: Can you explain the significant variability in the performance of the three segments, particularly the healthier margins in the consumer segment? A: David A. Martin, CFO, explained that the AG and E MC segments were heavily impacted by low volumes, affecting margins. However, the consumer segment benefited from a healthy mix of aftermarket business, which held up well through the quarter.\nQ: Is crop price the main driver for the AG market recovery, or are there other near-term catalysts? A: Paul G. Reitz, CEO, acknowledged that crop prices are a significant driver due to their correlation with farmer income and equipment purchases. However, Titan is focusing on product development and strategic partnerships to position itself for future growth, rather than waiting solely for crop prices to improve.\nQ: Could you comment on the potential large US army contract and the strategy for expanding into smaller tire markets? A: Paul G. Reitz noted that the military market presents an accretive opportunity, leveraging past experience and current innovations. Regarding smaller tires, Titan sees opportunities in niche markets with similar or less competition, supported by strong brand and distribution capabilities.\nQ: How have operating rates and raw material costs impacted margins, and what is the current operating rate of the plants? A: David A. Martin stated that the primary pressure on margins is due to low volumes, with some impact from raw material costs. While specific plant operating rates were not disclosed, the company expects to regain operating leverage as volumes recover.\nQ: What are the expected synergies from the Carl Star acquisition, and how are they progressing? A: David A. Martin indicated that the company is on track with its synergy targets, expecting $25 to $30 million in cost and efficiency synergies, with additional commercial opportunities anticipated as the integration progresses.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2480619838"}