According to Agweek, Titan Machinery Inc. of West Fargo, N.D., Case IH’s largest retailer of ag equipment, has been making proactive adjustments to manage inventories and cash over the past 2 years. While news of consolidation and workforce reduction at Titan has caused some to question the health of the dealer network, the company says it is just reacting to the lower commodity prices and the shift in the large ag equipment economy.
Agweek says the Assn. of Equipment Manufacturers is showing a 40% reduction of four-wheel-drive tractors and combines in the first five months of 2015, compared with the previous year, which was also down from the year before.
In reaction, Titan has closed some stores and reduced its employee numbers by about 14% companywide. Mark Kalvoda, CFO for Titan, says the company is focused on reducing its inventory and has cut it by $290 million since October 2013. David Meyer, Titan CEO, says the company’s cash balance divided by number of stores puts Titan at a healthy number and Kalvoda expects to continue in that direction.
To read the full story, visit Agweek.com.