Titan International Inc. achieved net sales of $403.5 million during the first quarter of 2021, an 18.2% year-over-year increase. Titan's first quarter net income totaled $13.6 million, compared to a loss of $25.5 million during the same period last year.
Titan's 1Q 2021 performance was its strongest since the first half of 2018, according to Titan President and CEO Paul Reitz.
"The strong recovery we began to see in our global ag markets in the fourth quarter has now accelerated and includes additional demand within our earthmoving and construction (EMC) businesses beyond our initial expectation at this point in the year.," he says.
"During the first quarter of 2021, ag and EMC experienced volume increases over 15% and 19%, respectively. These market dynamics, as well as our continued cost discipline emphasized over the last year, led to a gross margin percentage of 13.2%, representing a 450 basis point improvement from last year's first quarter.
"Based on a number of positive factors in the agricultural sector, including higher crop prices, low inventory levels for new and used equipment, strong farmer income and the age of existing equipment, we believe that the current market trends experienced in (the first quarter) will continue and in some cases, even improve throughout 2021 into 2022.
"We are taking the necessary steps in managing the workflow and operational levels at all of our production facilities to meet existing demand, along with the future needs of our customers.
"Titan has a long history of being flexible to adjust to changing markets with impressive depth in our production capabilities and we continue to hire and train people to meet this growing demand," he notes.
"Many companies around the world are facing supply chain and logistics shortages, but we are managing well to this point, due to well-coordinated supply chain management that requires continuous attention and action. At the same time, we have been and will continue to take, appropriate pricing actions to cover the rising costs of raw materials, labor and logistics.
"The second quarter will likely be much of the same with volatility, but we are up to the task of managing through the opportunities and the challenges in front of us. Due to this volatility, it is prudent to hold back on providing specific guidance for the remainder of the year and we will address this as we progress through the year."