Titan International Inc. (NYSE:TWI) Q2 2017 Earnings Conference Call - Final Transcript
Aug 03, 2017 • 09:00 am ET
Ladies and gentlemen, welcome to the Titan International Inc. Second Quarter 2017 Earnings Conference Call. During this session, all lines will be muted until the question-and-answer portion of the call. [Operator Instructions]
As a reminder, certain statements made in the course of this conference call are considered forward-looking statements for the purposes of the Safe Harbor provisions Under the Private Securities Litigation Reform Act of 1995 and reflect the Company's or management's intentions hopes, beliefs, expectations, or predictions for the future. The Company's actual results may differ materially from the intentions, hopes, beliefs, expectations and predictions contemplated in these forward-looking statements as a result of various factors including those discussed in the Company's latest Form 10-K and Form 10-Q filed with the Securities and Exchange Commission.
In addition, today's remarks may refer to non-GAAP financial measures, which are intended to supplement, but not be a substitute for the most directly comparable GAAP measures.
The earnings release which accompanies today's call contains financial and other quantitative information to be discussed today, as well as the reconciliation of the non-GAAP measures to the most comparable GAAP measures and is available within the Investor Relations section of our website.
Participating from Titan International on today's call will be Mr. Paul Reitz, Titan's President and CEO and Mr. Jim Froisland, Titan's Chief Financial Officer and Chief Information Officer.
Please note today's call is being recorded. At this time, I would like to turn the call over to Mr. Paul Reitz.
Thank you, Austin, appreciated. So, good morning and thanks for joining us. I am going to start off with the highlights from our business this quarter followed by a financial review from our CFO and CIO, Jim Froisland and then we'll wrap up by taking your questions.
Let's start right at the top with sales. In the first quarter we reported our first year-over-year increase in sales in 18 quarters, so it's great to report again that our Q2 revenue is up over 10% from last year. As you know, the duration and severity of this latest downturn was challenging. Therefore, it feels really good for our team to be part ourselves out of it.
When you dive into our $34 million in revenue gains this quarter, it really comes from a good mix across our segments and business units. For example, this quarter, we had $26 million in gains from our Ag segment, as well as our business units or all up in Ag except for Russia, which was only down slightly due to some market conditions and pricing pressure.
That is really something that we are watching the competition closely. They did not respond with price increases. We did do price increases due to the raw material fluctuations. So we did see a decline in our revenue there.
As a reminder, we have the number one market share in that region and so, we certainly believe that we can sustain our market leading position and protecting our margin was the right move in