Titan International Inc (TWI) saw its loss narrow to $12.98 million, or $0.26 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $51.16 million, or $1.07 a share. On the other hand, adjusted net loss for the quarter narrowed to $12.98 million, or $0.24 a share from a loss of $20.61 million or $0.38 a share, a year ago. Revenue during the quarter went down marginally by 0.17 percent to $307.29 million from $307.81 million in the previous year period. Gross margin for the quarter expanded 480 basis points over the previous year period to 10.59 percent. Operating margin for the quarter stood at negative 2.96 percent as compared to a negative 5.90 percent for the previous year period.
Operating loss for the quarter was $9.08 million, compared with an operating loss of $18.16 million in the previous year period.
Maurice Taylor, Titan chairman, commented, “Titan has a new management team, headed by president and chief executive officer, Paul Reitz, which understands what needs to be done to continue our improvements and we are moving ahead to make this happen. At the beginning of 2016, our management team discussed with the Board of Directors certain assets that Titan could consider for potential sale. These assets included our facility in Brownsville, Texas, our recently established business involving Titan Tire Reclamation Corporation (TTRC) in the oil sands, and our Italtractor ITM S.p.A. (ITM) undercarriage business, initially considered in connection with an unsolicited inquiry from a potential purchaser. At that time, Titan's management believed we could receive more than an aggregate of $250 million for these assets.
Working capital declines
Titan International Inc has witnessed a decline in the working capital over the last year. It stood at $360.13 million as at Dec. 31, 2016, down 18.13 percent or $79.77 million from $439.90 million on Dec. 31, 2015. Current ratio was at 1.98 as on Dec. 31, 2016, down from 2.63 on Dec. 31, 2015.
Debt remains almost stable
Total debt of Titan International Inc remained almost stable for the quarter at $506.17 million, when compared with the last year period. Total debt was 40.08 percent of total assets as on Dec. 31, 2016, compared with 39.73 percent on Dec. 31, 2015. Debt to equity ratio was at 1.75 as on Dec. 31, 2016, up from 1.47 as on Dec. 31, 2015.
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