RSS
Twitter
Linked In
News In
News
Linked In
RSS
https://twitter.com/Agrimoney
http://www.newsnow.co.uk/h/Industry+Sectors/Agriculture

You are viewing your 1 complimentary article.

Register now to receive full access.

Already registered?

Login | Join us now

Titan 'confident' on prospects despite weak start for ag sales

Twitter Linkedin eCard

Titan Machinery flagged its "confidence" in its long-term prospects, and stood by expectations for full-year earnings, amid "low demand" for farm machinery, despite a slower-than-expected start to the year for farm machinery sales.

The seller of Case and New Holland equipment unveiled a loss of $6.20m for the February-to-April quarter, although that was narrower than the $6.49m loss a year before, and a slightly better result than investors had expected.

Adjusted losses per share stood at $0.13, compared with a market forecast for a loss of $0.22 per share.

The loss reflected the dent to farm spending from low crop prices, which sent Titan Machinery's revenues down 24% to $353.2m.

Like-for-like in the core US agriculture division fell by 29%.

"Headwinds"

"Ongoing headwinds in the agriculture industry continue to impact our results," said David Meyer, the Titan Machinery chairman and chief executive.

Indeed, the group flagged "continued low end-user demand", and at a time when "high" supplies of machinery for sales were "pressuring used equipment prices and compressing margins".

And it noted the prospect of continued headwinds, with the US Department of Agriculture forecasting strong crop supplies and "low" prices, and seeing US net farm income tumble by 32% in 2015.

"Necessary steps"

Nonetheless, the group stood by its expectations for its year to January 2016, including of a drop of 20-25% in same-store in agriculture, implying some improvement in the division's performance ahead.

And Mr Meyer highlighted the measures such as the axing of one-in-seven staff, and four store closures, taken to improve performance.

"We believe that we have taken the necessary steps to navigate the challenging macroeconomic conditions by better aligning our cost structure with the current environment," he said.

"We remain confident that we are on the right track to improve our long-term financial performance and capitalise on future growth opportunities."

By Agrimoney.com

Twitter Linkedin eCard
Related Stories

World phosphate, potash shipments to grow in 2018, helped by Chinese needs

Mosaic forecasts further demand expansion, as it heralds a "transformational year" for its own fortunes, after a 2017 marred by a one-time tax charge

Deere lifts sales hopes - even as it unveils biggest loss in 25 years

The maker of John Deere tractors flags "strengthening" market conditions, but swallows a huge writedown prompted by US tax retorms

Plant Impact agrees takeover by Croda, after failure of Bayer contract

The crop enhancement group, floored by the failure of a supply deal with Bayer, agrees a takeover by a maker of chemicals from anti-wrinkle creams to floor coatings

Cautions mount over cost to US agriculture of trucking safety clampdown

US officials reference tightened trucking rules in a cotton export forecast downgrade, while Tyson Foods forecasts an extra $200m in costs
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© Agrimoney.com 2017

Agrimoney.com and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of AgriBriefing Ltd
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069