Thanks for the report. I'm disappointed in this downturn, but optimistic about the future. This same thing happened with another stock I have, and after getting badly beaten up,it had a blowout quarter this time and went up 25% in a day. Hope the same will happen here.
Just listened to the call. There is no demand problem. Basically, there was a problem was Titan's expansion and execution not going as well as originally forecast. Titan was not able to get the tires out fast enough. I expect this problem to be worked out over the next couple of quarters, with Titan really humming in the fourth quarter. And contrary to what many people think, most farmers are still making a ton of money, the drought notwithstanding. Farmers are either making up for the lower crop yields with the increase in price, or they are making it up on a taxpayer subsidized Federal crop insurance program where they can plow their fields under and collect money based on 85% of their original projection. Also, new irrigation systems are selling like hotcakes, and Titan tires on all these irrigation systems. JMO.
Smart move. This sell-off is insanity. Regardless of the .08 "miss" on revenues (who makes theses crazy projections anyway?), the numbers were GREAT:
Second quarter highlights:
Sales for second quarter 2012 were $459.2 million up 14 percent, compared to $404.4 million in the second quarter of 2011. Gross profit increased 28 percent for second quarter 2012 to $82.1 million, or 17.9 percent of net sales, compared to $64.3 million in 2011, or 15.9 percent of net sales.
Second quarter income from operations was $81.0 million up 82 percent, compared to $44.4 million last year. Adjusted net income for the second quarter was $28.8 million, compared to $23.7 million in the second quarter of last year (see table and appendix below). Adjusted earnings per share for the second quarter are $0.68 and $0.56 for basic and fully diluted respectively, compared to $0.56 and $0.46 for 2011, basic and fully diluted respectively.
I'm holding til this turns around when smart investors get the REAL picture.