Titan International (TWI -20.1%) tumbles to its lowest level in three years after reporting a much larger than expected Q4 loss and a 3.4% Y/Y revenue decline and guided for lighter than forecast 2019 overall net sales growth of 6%-7.5%.
Q4 net sales volume came in essentially flat compared to the year-ago quarter, with unfavorable currency translation hurting net sales by 5.4%, particularly in Latin America.
TWI says its disappointment that it did not achieve positive cash flow in 2018, despite earnings growth, owes to working capital increases - specifically inventory growth - and it will move forward with a focus on stronger strategic management of working capital and increased inventory turnover.
TWI says factors that weighed on FY 2018 results included the standoff over tariffs, rising steel prices and sluggish commodity prices, which impacted farmers. Revenue declines in the quarter resulted principally from decreased net sales in the agricultural and consumer segments.
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