A cash dividend of $.005 (one half cent) per common share was approved by Titan International Inc.’s board of directors for the fourth quarter of 2018.
The cash dividend is payable Tuesday, Jan. 15, 2019, to stockholders of record on Monday, Dec. 31, 2018.
The announcement comes on the heels of Titan’s third-quarter results. Titan posted net income of $2.3 million on net sales of $387.7 million for the third quarter ended Sept. 30, 2018. That compares to a loss of $12 million on sales of $371 million for the same period in 2017.
Titan’s income-to-sales ratio for 3Q 2018 was 0.5%. Operating income increased from a loss of more than $4.6 million for 3Q 2017 to income of $4.8 million.
For the first nine months of 2018, Titan recorded net income of $28.4 million on net sales of more than $1.24 billion. That compares to a loss of $29.7 million on sales of nearly $1.1 billion for the same period in fiscal 2017.
"Titan's overall global performance continues to trend positively as we head into 2019," said Paul Reitz, CEO and president. "During our most recent quarter we reported year-over-year sales gains for the seventh consecutive quarter. These gains were nearly 10%, excluding unfavorable currency translation headwinds. Both gross profit and gross margin improved nicely despite increasing raw material costs.”
Reitz said this was the first time since 2013 Titan reported a profitable adjusted earnings per share in the third quarter.
"The benefits driven from our continuous operational improvement efforts and the fruits derived from our strategic investments over the past few years continue to show up positively in our financial results. Our earthmoving/construction segment, in particular the ITM undercarriage business, has performed exceptionally. Year-to-date sales for this segment are up over 28%, with that growth also translating well into meaningful margin and EBITDA improvement for Titan.
“In North America, sales of large to mid-sized ag machinery have seen a mild upturn over the past year, and small equipment sales have maintained a strong, upward trend,” he said. “Recent surveys indicate that most dealers expect more of the same in 2019.
“Generally speaking, dealers are optimistic about prospects for improving both new and used equipment revenues moving into next year. This is consistent with what we are hearing from many of our customers. Additionally, ag equipment indicators for both OEMs and dealers remain positive, including improved early order levels over last year, equipment inventories at good levels, and the increasing age of the fleet for higher horsepower equipment. Larger equipment sales levels remain below longer-term, historical averages, which, along with an aging fleet, indicates the potential for upside at some point.
"We have worked hard the past few years to not only get through the cyclical downturn, but to also set a solid foundation for the future. It's great to see those efforts starting to come through into our financial results with 2018 year-to-date adjusted EBITDA more than doubling from 2017 levels. These improvements over the past couple of years are not by coincidence or luck, and as we approach 2019, we have a strong belief in the fundamentals that support our business and drive our future."
For more information on Titan and its products, visit www.titan-intl.com.