Taiwan I.T Share Discussion Threads

[kimboy2] 26/1/2023 14:42

I am still here from the Titan Europe days. ISTR I bought in at about 24p so I have lost track of how that converts to the present day price. Anyway I hold 16k of them so not disinterested.

The EPS looks as though it will be about $2.50 for 2022 so it looks cheap. However I am not sure how much profit it actually makes over the cycle.

I think they would do well to get rid of the debt as that is what crashes the price when the cycle turns. They have been selling the track division at various times, perhaps now would be a good time and pay some debt off.

We might actually get a dividend then.

[strollingmolby] 07/11/2022 22:07

Hi David - good to know I'm not alone here...!

Titan International, Inc. Reports Record Third Quarter Financial Performance
Nov. 07, 2022 4:30 PM ET Titan International, Inc. (TWI)

Adjusted EBITDA of $61 million, a YoY $26 million increase

Reported EPS of $0.68/share, a YoY growth of $0.50/share

Other Quarter Highlights

- Net sales were $531 million, an $80 million (18%) YoY increase, the strongest Q3 sales level in TWI history
- Gross margin was 16.5% versus 13.4% a year ago
- Free cash flow was $40 million in Q3 and $69 million YTD, a $34 million YoY increase for the quarter and a $96 million YoY increase for the year

CHICAGO, Nov. 7, 2022 /PRNewswire/ -- Titan International, Inc. (TWI), a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products, today reported results for the third quarter ended September 30, 2022.

"The Titan team continues to execute well throughout our businesses as we delivered a strong performance again this quarter," stated Paul Reitz, President and Chief Executive Officer. "This quarter we experienced sales growth of 18% compared to the third quarter last year that was supported with healthy volume gains. I want to remind everyone that when looking at quarters sequentially our third quarter production days are impacted by our normal plant maintenance shutdowns and the traditional summer vacation in US and August holidays in Europe. With that being said, we delivered solid margins this period with adjusted EBITDA of $61 million this quarter that compares to $35 million last year. This strong performance reflects all of our business units continuing to execute at a high-level. I've stated numerous times throughout the many global challenges of the past couple years that our Titan team has been exceptional with our determination and resilience, and we are proud of the results that we have produced.

"Titan has significantly strengthened its financial position over the past two years and this quarter was no exception as we generated $40 million in free cash and have reduced our debt by $35 million this quarter. This reduces our net debt leverage to 1.4 times adjusted EBITDA. Our strong financial performance over the past couple years when combined with the improvements to our balance sheet and solid free cash flow generation, has meant that Titan has created tremendous shareholder value.

"The business climate is swimming with noise these days, but if you sift through it you will find that Agriculture is standing on solid ground. We have continually stated that farmers are in a good financial position and the recent USDA reports illustrates that corn and soybean supply-demand will support good pricing into 2024, at a minimum. Farmers look at crop prices as one of the key indicators for purchasing new equipment. That combined with pent-up demand from supply chain and labor disruptions at OEM's, along with continuing low levels of available used equipment, bodes well for 2023 large Ag demand. We believe that the bigger picture view is that large Ag remains in a solid position, and we expect the sector to work through current supply chain challenges with a bright future ahead. Small Ag equipment inventory levels are starting to normalize to pre-Covid levels, while used small Ag prices remain well above those levels. However, inventory levels are still below historical norms and there is need to keep current production levels in order to normalize business conditions. We have a strong customer base in small Ag and will watch inventory and order levels closely as we prepare our 2023 operational plans."

"Our 2022 expectations for sales, adjusted EBITDA and free cash flow represent the highest level achieved throughout our long history. With our performance through three quarters and our current visibility for the remainder of the year, we expect to finish the year at the top end of our previously communicated targets. We continue to believe the key elements are in place to drive continued positive momentum for the business."

Results of Operations

Net sales for the third quarter ended September 30, 2022, were $530.7 million, compared to $450.4 million in the comparable quarter of 2021, an increase of 17.8 percent. The net sales increase was across all segments and driven by price/product mix and volume, with price having a greater impact in the most recent quarter. The increase in net sales was unfavorably impacted by foreign currency translation of 4.7% or $21 million, primarily due to the weakening euro and Turkish lira. On a constant currency basis, net sales for the third quarter 2022 would have been $551.8 million.

Gross profit for the third quarter ended September 30, 2022 was $87.6 million, compared to $60.3 million in the comparable prior year period. Gross margin was 16.5 percent of net sales for the quarter, compared to 13.4 percent of net sales in the comparable prior year period. The solid growth in gross profit and margin during the third quarter as compared to the prior year period was across all segments and was driven by the impact of increases in net sales, as described previously, and improved operating leverage in our production facilities. In addition, cost reduction and productivity initiatives continue to be executed across global production facilities.

Selling, general, administrative, research and development (SGARD) expenses for the third quarter of 2022 were $33.8 million, compared to $34.6 million for the comparable prior year period. As a percentage of net sales, SGARD was 6.4 percent, compared to 7.7 percent for the comparable prior year period. The decrease in SGARD during the quarter as compared to the prior year was driven primarily by a decrease in legal fees and variable expenses associated with Australian wheel business that was sold in the first quarter of 2022.

Income from operations for the third quarter of 2022 was $50.5 million, or 9.5 percent of net sales, compared to income of $22.9 million, or 5.1 percent of net sales, for the third quarter of 2021. The increase in income from operations during the quarter as compared to the prior year was primarily due to the higher sales and improvements in gross profit margins.

[davidosh] 21/9/2022 01:32

I am till holding from many years ago.

[strollingmolby] 20/9/2022 22:25

A nice write-up on Titan's prospects here, with the following conclusion:

The company displayed competence in navigating adverse market conditions and turned unforeseeable circumstances into opportunities for growth and streamlining. In a display of fiduciary discipline, Titan has remained politically neutral in favor of shareholder interests - a welcome reassurance that the company's governance structure is dedicated to the bottom line.

In addition to operating in a growing industry and enjoying relative insulation from major supply chain shocks, Titan has solid financial fundamentals. Moving further into FY22, the company should continue on its trend of growth and profitability. While the surge in growth from FY21 cannot be sustained at the same rate, a slowdown merely represents the normalization of operations in a new environment and should not deter investors from purchasing this undervalued stock as a long-term buy.

[strollingmolby] 06/6/2022 18:58

Nice recovery ongoing from the lows in 2020... Anyone else still holding here?

Hopefully a divi will be re-instated soon but I've seen no language suggesting that in recent results. Titan's chairman updated the market in late-May, and he couldn't be more bullish if he tried:

"The last few weeks I have had phone calls from shareholders wanting to better understand what is going on with TWI referencing the moves in our stock price. The simple answer is TWI doesn't have anything to do with the daily movements in our stock price! TWI's President and CEO, Paul Reitz and his team have done an excellent job growing production and keeping everything running worldwide through the last 18 months. The results speak for themselves. What a great job they have done. I have never seen a market like this. TWI's order books are full through 2022 and 2023 could be even better. The reason for this was mentioned by Paul in his first quarter earnings release comments a few weeks ago. The price of corn, soybeans, wheat and cotton are all near historic highs, and there is no surplus out there, which should lead to farmers spending on equipment for quite a while.

"As major equipment companies have stated, they are going full out to build everything they can. TWI's business should run hot for a while as there is no significant equipment inventory on dealer lots and any change to the situation appears to be a long way off. The aftermarket for used farm equipment is also seeing similar things with dealer lots remaining bone dry with little to no used equipment. This further helps Titan because some farmers cannot get new equipment, so they opt to repair their older equipment. That means new tires, and if they want new larger, wider tires that means new wheels and tires.

"As I mentioned earlier, I have never seen business like this and the opportunity for TWI continues to be great. TWI has stated adjusted EBITDA should be over $200 million for the full year 2022. I agree with that statement. Everyone wants to know about supply chain issues and how they could impact Titan's business. On the wheel side, steel is the most critical raw material. The price of steel has more than doubled in the past 18 months and has been volatile throughout, but Titan has maintained supply and managed the increased costs with pricing. Tires are different because they also contain carbon black, natural rubber, and synthetic rubber and other raw materials. Titan has more options, including substitutes in a pinch, if needed. TWI's products do not have microchips in them, which is causing a lot of problems for equipment makers these days. I believe TWI is sitting solid and is managing well in this volatile and tricky environment.

"One item I think I understand well is there is a shortage of food in parts of the world. Many people are concerned about this, so that means there should be no slowdown in farm business. Even politicians understand that the government doesn't grow food, so farmers will be very busy. That is great for TWI given our strong position.

"So, as you can see, TWI's future is the best it's ever been, in my opinion, and I want to thank all our shareholders, many of whom have been shareholders for a long time! I am a very proud, old man who has been a part of this company for a lot of years. Paul Reitz and his team are going to bring TWI to new and better prosperity. I could not be prouder of the entire Titan Team!"

[kimboy2] 04/5/2018 19:45

I am not sure if I am talking to myself here but here are the Q1/18 reults against expectations for the year;

Target 2018 Q1/18Revenue 7-12% 19%GP Improvement 20-40% 50%Ebitda up 50-100% 144%S&G 10-10.5% 8.43%Capex $35-45m $7.8m



Titan is heavily geared for any upswing and after about 4 years of downturn the upturn is finally happening.

The main negatives seem to be any potantial affects of the idiot Trumps tarrifs. We shall see if they happen and if they can be mitigated. It looks as though Canada, Mexico and the EU is going to be outside the regime so the net effect may well be zero

The other negative is minority shareholders in the Russian subsidiary which they have to buy out this year. Russia isn't a particularly happy place to invest atm.

Once the North American farming starts recovering then this will be $40 IMV.

[kimboy2] 04/5/2018 06:31

Looks like the upswing has well and truly started for TWI. This seems to be despite no real advance for North American farmers. No doubt it will come and no doubt a lot further to go.

hxxps://www.twst.com/update/titan-international-inc-titan-international-inc-reports-first-quarter-2018-net-sales-up-19-percent-yoy-and-earnings-of-0-23-per-share/

[strollingmolby] 09/11/2015 09:02

Down 25% on Friday...
hxxp://titan-intl.investorroom.com/2015-11-06-Titan-International-Announces-Third-Quarter-2015-Results
CEO and Chairman, Maurice Taylor comments, "The third quarter for our end markets was worse than anyone forecasted. This was consistent with our large customers and competitors. We continue to be focused on what we can control. This can be seen in our third quarter results. Our Titan employees are dedicated to working very hard to lower manufacturing costs, improve quality and improve how we manage the company. While unfortunate, we continue to make the difficult decisions to reduce headcount as production continues to slow. In addition to our focus on reducing manufacturing costs, we are exploring wheel and tire designs to both reduce cost and improve performance.

[venture traveller] 15/4/2015 18:50

Titan are stuck in between struggling miners, and struggling farmers - their biggest markets.

They are trying to diversify by bringing in low profile tyres for tractors (don't laugh), and also a tyre reclamation plant. It appears that these two areas could prove fruitful, but we need a little patience.They have also conducted a major streamlining throughout the corporation, which will no doubt prove effective if we see an upturn.

Just to prove their commitment to the plans, our Morris has bought some shares recently, and so has the new CEO.

[2andyman] 10/4/2014 09:14

Is there anything that will make the share price rise here or make the board of directors pay a decent dividend?

The board seems to spend the profits on empire building acquisitions that do nothing for the shareholders, only the board's egos.

I had Titan Europe and took the Titan International shares during the takeover. I had my doubts then about the wisdom of my decision and those doubts seem to be correct.

Does anyone have any good news or is this just another corporate gravy train for the directors?

[kimboy2] 23/1/2014 11:47

Seems to be a bit of action at TWI;



In a Schedule 13D filing with the Securities and Exchange Commission, MHR said it believes Titan's shares are undervalued, and seeks "to engage in discussions with management and others concerning the business and operations of (Titan)."

According to C. Schon Williams, an analyst with BB&T Capital Markets, Titan's management team already has had initial conversations with MHR.

"For the time being, the fund (MHR) has yet to detail any specifics on the changes they would like to implement," he says. (BB&T Capital Markets is a division of Scott & Stringfellow Inc., a registered broker/dealer subsidiary of BB&T Corp.).

On its website, MHR Fund Management, which Williams describes as an "activist investor," says it takes "a highly differentiated, control-focused, private equity approach to investing in distressed and undervalued middle-market companies." It seeks to "exert control or significant influence on its portfolio companies," which it believes is "essential to preserving and creating value."

Not quite sure how it intends to create value but presumably they are thinking of a sale.

[kimboy2] 07/1/2014 10:43

TWI said that Goodyear had to sort out the unions at their French factory before they could make an offer. There is an update on Goodyear's negotiations;

[kimboy2] 30/10/2013 07:02

hxxp://seekingalpha.com/article/1785152-titan-international-management-discusses-q3-2013-results-earnings-call-transcript?part=single

[kimboy2] 29/10/2013 15:22

It will be interesting to see how widely this reclamation can be wheeled out. The beauty of it is that the profits shouldn't be related to the other cycles that TWI is subject to.

[strollingmolby] 29/10/2013 15:01

Up 9% currently - market seems to like it even if SeekingAlpha is correct in stating the revenue and earnings numbers were a miss.

[kimboy2] 29/10/2013 14:47

Yes rather remarkably remarkable. He has certainly pulled that rabbit out of a hat.

Needless to say the market likes it. The conference call is at 6pm and is webcast. There will no doubt be questions about it.

[strollingmolby] 29/10/2013 12:48

Interesting development - green carbon certs, csrbon credits, and a high-margin business recycling the tires...

"Tire Reclamation: Titan Mining Services ("TMS") has started Titan Tire
Reclamation Corp. ("TTRC"). TTRC will be working with Green Carbon who has
developed a pyrolysis process in which mining tires and belting can be put in
a reactor so that, when the process is completed, a 59R63 super giant tire
becomes 450 to 500 gallons of oil, approximately 4,000 pounds of carbon black
and approximately one ton of steel.

"Depending on the country TTRC is operating in, the Company will receive
carbon credits. In addition to the return on oil, carbon black and steel,
TTRC will be paid a fee. The first system is planned to go to the oil sands in
Alberta, Canada, and then Elk River Valley of B.C. Canada. We are planning
units for Elko, Nevada; Gillett, Wyoming; Chile and Australia. Titan has
plans to use the reclaimed carbon black in various tire products, which should
give Titan a green carbon certificate for tires we produce, even the reclaimed
steel counts. There's no question Titan Mining Services will be growing
worldwide in the next few years. As TMS expands, each location will have other
equity owners operating each facility.

"I know the first question is what would revenue be? The above gross revenue
at today's prices should be $250 million for the sites mentioned above. The
EBITDA should be between $75 and $100 million gross. Yes, the margins are
better turning the tires back into oil, carbon black and steel. Titan has been
working on this for the past three years and we will have our first reactor
running in June/July 2014.

[strollingmolby] 29/10/2013 12:18

(Seeking Alpha) Titan Intl misses by $0.10, misses on revenue

Titan Intl (TWI): FQ2 EPS of $0.15 misses by $0.10.
Revenue of $497.5M (+22.9% Y/Y) misses by $36.49M. (PR)

----------------------------

Third quarter highlights:

o Sales for third quarter 2013 were $497.5 million up 22.9 percent, compared
to $404.7 million in the third quarter of 2012.
o Gross profit decreased 6.9 percent for third quarter 2013 to $62.5
million, or 12.6 percent of net sales, compared to $67.2 million in third
quarter 2012, or 16.6 percent of net sales.
o Third quarter income from operations was $17.1 million compared to $36.2
million last year.
o Adjusted net income for the third quarter was $8.1 million, compared to
$24.7 million in the third quarter of last year (see appendix below).
o Adjusted earnings per share for the third quarter 2013 are $0.15 and $0.15
for basic and fully diluted, respectively, compared to $0.59 and $0.49 for
2012, basic and fully diluted, respectively.

Statement of Chief Executive Officer:
Chairman and CEO, Maurice M. Taylor comments, "The third quarter has come and gone. Ag has held steady, earthmoving and construction declined and further decreases in raw material prices have impacted margins. Some people will say the glass is half full; others say it's half empty. I see the future for Titan as the best I've ever seen. Why? We have many opportunities on the horizon.

[kimboy2] 27/10/2013 23:16

Judging by the transcripts I think you would need an interpreter.

IIRC they said that they had 5 or 6 acquisitions in the pipeline which would add $500-1bn in revenue. The only one they have enacted so far is the Russian one with a t/o of $200m. I am not sure how much is attributable to TWI.

[davidosh] 27/10/2013 22:26

Sounds just the sort of guy we should get along to present at one of our Mello events lol

[strollingmolby] 27/10/2013 21:30

Zut alors! Quite a turn around from Grizz since his disparaging comments last year, Kimboy! And other European targets too - exciting times, assuming they can integrate them all painlessly.

[kimboy2] 27/10/2013 21:15

It looks as though the ambitions are stretching beyond the Goodyear factory at Amiens;



Mr Taylor added that the company, which makes tyres for off-road vehicles, is also weighing bids for three additional plants in Europe in deals that would take its sales in the region from $750m in 2012 to to $1.3bn.

Perhaps it is a good time to be buying these type of outfits with valuations well down. However I feel that TWI haven't quite got on an even keel from their previous acquisitions. Then again when mining and construction recover TWI will be very well placed.

The conference call will be interesting.

[kimboy2] 25/10/2013 22:24

More on France, and Russia;