Titan International, Inc. reported net sales of $448.0 million for the third quarter ended September 30, 2024, an increase from $401.8 million in the comparable period of 2023. This growth was primarily driven by the net sales contribution from the Carlstar acquisition, completed on February 29, 2024, but was partially offset by reduced sales in the agricultural and earthmoving/construction segments.
Gross profit for Q3 2024 was $58.8 million, or 13.1% of net sales, down from $66.1 million, or 16.4% of net sales, in Q3 2023. This decline was attributed to negative price/mix, reduced fixed cost leverage, and a slight increase in material costs. Income from operations decreased to $2.8 million from $27.0 million in the prior year period, and the company reported a net loss of $18.2 million, or $(0.25) per share.
Segment-wise, agricultural sales decreased by 17.6% to $175.4 million due to reduced global demand, while earthmoving/construction sales declined by 12.1% to $136.3 million due to softer demand. The consumer segment, however, saw a significant sales increase of 303.4% to $136.2 million, primarily benefiting from the Carlstar acquisition.
As of September 30, 2024, Titan held $227.3 million in cash and cash equivalents, and net debt decreased sequentially to $291 million from $326 million at June 30, 2024. The company also repurchased 1,050,000 shares of its common stock totaling $8.3 million during the quarter.
For the fourth quarter of 2024, Titan provided guidance expecting sales between $375 million and $425 million, with adjusted EBITDA projected to be between breakeven and $10 million. Free cash flow is anticipated to be around breakeven, reflecting continued working capital management.
Paul Reitz, President and CEO, highlighted the strong performance of Low-Side Wall (LSW) wheel/tire assemblies, noting fuel savings exceeding 10-15% and significant opportunities in the mid-size tractor market. He also mentioned the recent launch of VPO™ Technology under the Carlstar brand and the company's efforts to reduce headcount by approximately 15% from the 2022 cycle peak.
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