Off-road tire and wheel maker, Titan International, posted a 9.1% gain in net sales in 2018 vs. 2017. Net sales for the full year 2018 were $1.6 billion, representing an increase of 9.1% vs. sales of $1.47 billion in 2017. Net income for the full year was $3.9 million, compared to a loss of $66.4 million for 2017. Sales of ag tires and other ag-related products was up less than 1% for the full year.
The overall increase in net sales for the year resulted from an increase in net sales volumes of all segment. The company said, The increase reflects general market improvements in the agricultural and construction sectors, coupled with market share increases, particularly in the undercarriage mining sector during 2018. Overall net sales volume increased 7.7%. Favorable changes in price/mix contributed a 3.6% increase in net sales, partially offset by unfavorable currency translation which decreased net sales by 2.2%.
Net sales for the fourth quarter ended Dec. 31, 2018, were $363.4 million, a decrease of 3.4% from $376 million in the comparable prior year period, driven by decreased net sales in the agricultural (–9.7%) and consumer segments, offset by increases in the earthmoving/construction segment. Overall net sales volume was essentially flat compared to the same quarter a year ago, while favorable changes in price/mix positively impacted net sales by 2.2%. Unfavorable currency translation negatively impacted net sales by 5.4 %, particularly in Latin America.
Looking ahead, Paul Reitz, president and CEO, As we look to 2019, we believe that Titan is positioned for continued overall net sales growth in the range of 6-7.5%. Specifically, within our segments we anticipate net sales growing as follows: agricultural (4-6%), earthmoving/construction (8-9.5%) and consumer (2.5-4.5%). With the continued growth in revenue, we believe that gross margin will improve and finish the year within the range of 12.8% to 13.2% of net sales.”
Titan International 4Q & Full Year 2018 Segment Sales ($ 000)
Amounts in thousands
|Net Sales||3 Months Ended Dec. 31, 2018||3 Months Ended Dec. 31, 2017||12 Months Ended Dec. 31, 2018||12 Months Ended Dec. 31, 2017|