Earnings call transcript Q4 2022

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Operator

Good morning, ladies and gentlemen, and welcome to the Titan International Incorporated Fourth Quarter 2022 Earnings Conference Call. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. [Operator Instructions]

It is now my pleasure to turn the floor over to Alan Snyder, Vice President, Financial Planning and Analysis for Titan. Mr. yours. is floor the Snyder,

Alan Snyder

Thank you, to to everyone I’d Good fourth quarter morning. Titan’s like XXXX welcome Forum. earnings call.

with with was and the issued our Senior are about On Commission. President earnings the reminder I release call me review also Exchange results Paul with XX-K, the are Form the we the Reitz, will and Securities begin CEO; with President were David yesterday, Vice Titan’s to filed along that Martin, and which and CFO. today Titan’s presented in

a we forward-looking our As cause company’s will discussing information. certain uncertainties the reminder, projections future risk, the could and that actual the including results be and during this assumptions involve that to call, forward-looking differ plans for from information, materially

concerning included the either found release of results the information and SEC. our forward-looking factors actual cause latest from Forms statement in been Form be XX-K attached statements the earlier, differ Form all can could Harbor in filed as or to Safe individually which with X-K well aggregate materially XX-Q, filed within company’s as earnings have to the the these that Additional

remarks to non-GAAP are to may today’s financial which measures, addition, In refer intended

most the most the reconciliation earnings of but be substitute contains GAAP today, well as comparable quantitative discussed comparable as the a measures. supplement, which information GAAP the measures. other not measures The accompanies and directly for release, financial call today’s to to be non-GAAP

all soon a the of of transcript latest website today’s QX Titan’s presentation quarterly company’s earnings available copy be a after The this and presentation, company’s available is on the will replay release call on the website, investor

Paul. over turn the I would now call to to like

Paul Reitz

top perform relentlessly that out excellent by How’d morning, to we and record get quarter global Titan be for One It team cash profitability, team with XXXX the our working really flow. that to performance manufacture simply leading us push Thanks, Alan, our fourth everyone. up to terms in sales, from market engineer The over off-road and of Titan continues in good results products point? better. equipment that this and fashion energized comes make closed

our company A on serves concept is connection users premise, light a the our it throughout that our core and and as through equipment, in Really, especially organization. customers meeting technical our our guiding end of strong strategy and formed our needs vision vision as by of off-road to is agriculture. achieving of

needs then learning back and have really centered products, organization. that also place technical playing we an product engineers important and At that a living manufacture and and end in our knowledge, users is understanding develop, around and Titan, teams their work. that culture bringing by With then that sandbox with to place here information exciting run our a these the we operational for really fast, and market creates let our cool leading into

the culture, at throughout the and of company our entrepreneurial are manufacturing flows and that combined is with We strong and this our knowhow technical this has company’s the is been This decades. foundation vigorously today. activities for day-to-day our we root backbone of

had results. Moving an our We financial simply over to exceptional year.

people in to $X.XX recruit, in demonstrates difficult in reached FX Along and a our but to exclude labor Australian revenue if higher this volumes Our you strong with XX% team’s ability last actually market. our grow higher than XX% billion, demand divestiture. end year, train, our retain markets,

of cost than We environment million sales $X.X we profit inflationary manage million, EBITDA year our hit that only to XX.X% over gross structure for Titan. is well and year $XXX an which in. a XXXX live with our Our little in as coming higher effectively a led SG&A last record adjusted in that of X% this

that’s revenue, the year closed million QX. we in Looking also first have we ever the the fourth in $XXX and at surpassed well $XXX million up quarter, X.X%, out time with

As this noise plant period effectively maintenance XX.X% which gross holidays margin to that to a record to shutdowns, impacted that and is so team by of always quarter see is our XX%, through a last get compares reminder, it’s year. good

our to best led QX of $XX That is EBITDA history. in which million, quarter fourth our

these would I angle So their a to highlighting. and had had sincerely look overall, team the just for excellent our to honor you our from an nearly like efforts at, recent every all years XXXX, thank of can business global units accomplishments and achieve that of I in personally

few out was us to and our did I – to of to the ago, balance focused years, we move we’ve really and rest two spoke our around want the our the there. process a set priorities done of fortify of minutes the that few that objective made over top our A management we’ve sheet I to job critical over few getting good bit the now quite a a progress our on accomplish. what and spend years and and sheet on balance one team past team world David

cash XXXX, enabled generated debt achieve leverage net $XXX million us in of to That’s In flow. Titan free X.X times.

a back XX% years was ago, few working our of capital sales. around look you If

get Our XX%, done put couple that past Board, the days those now. Board where years I us do an and objective recall front to for in below of our we’ve

never improving and is a innovation unprofitable and of past years exiting take and the us off executed the challenging our take our development we’ve tick, we sheet, strategic our customers these at balance businesses, balance to the have care goal of sheet. of our workforce we’ve over and new results not our we of our during years, noted motivated being foot what a propelled high in makes past I heart also levels, our that same direction few by fortifying pedal. the culture Therefore, we that to level as by investing crucial times, financial moving investments the product in accomplished having earlier. and few over do stopped importantly, fortifying Most This with and

say XXXX, towards to the at these climate reasonable looking the amount out noise now kicks overall days. business is it fair level a of macro So

are markets, still segment. and especially at we on However, primary Ag when they’re ground, encouraged you look large the firmer end believed our standing

recent a supply XXXX the illustrates hands demand purchasing about especially the report latest not they’re and corn LSWs. That to good positive into their with bring get mention when ag minimum. to at soybean getting our factors hands pricing on farmer’s along levels stocks their precision low The technologies decisions will USDA and that in will on play role a equipment, going

from well large supply really this couple The strong to of used farmer available labor income ag over demand for – equipment still the and low large past equipment, years, is combined with with XXXX continuing disruptions that bode from pent-up that for along of demand. that recent continues very chain years levels all lingering

factors tapering company. demand along slowing XXXX. to a looking small effects Flipping along small inflation seeing it’s of in But levels, internal ag some it smaller with These us a pre-COVID demand segment still with and over horsepower appears ag, OEMs that drawing at to ranges. inventory the down is in normalize inventory good again, of to their our down for starting per leads strong

Moving over Construction. Earthmoving to and

finish the year segment this really in businesses Our strong.

and in and growth the backdrop with the for in infrastructure the best points at In Earthmoving start undercarriage quarter with commodity market place position to see mining of aftermarket kicking good throughout in solid prices history. a good this business construction our had XXXX fact, Construction its in having We some long ITM, poised year. support

at off XXXX. look a we strong So XXXX this as of continuation a again to start

the year again circle back XXXX to if serve. for proudly we customers exceptional to So Titan as and the you team

our this year, income a markets. As be will we turn equipment into continue in that based by high we overall and and remain – market next Farmers to performance healthy supported expect page to on conditions financial on spend our cash into they to the the have strong levels level end at tires.

that robust. bodes that the to and see to their better to we perform battle well be unpredictable, farmers very are for our and continue Therefore, conditions LSW aftermarket more remain been make tough have equipment looking do conditions through continuing to demand for solution looking those efficient. perfect simply our Weather

to We also will inventory see a that a bit OEMs of internal drawing their make for wild certain expect down levels ride.

for as more performance, expect the but about broad today’s year we range provide we’re looking information and expectations year progresses, provide not going we’re of of XXXX today to And So strong see on coming forecast record as our off a XXXX, another – Titan. to call.

strive the customers that the also on role play and the users. involving as products and we specifically meeting earlier, an exciting In every a and the closing, it’s quality innovative work fun makes to see and for the place products really to I a our be really end mentioned around cool important needs and of day. our company build in we more It fact as world

risks Along the strong today’s chain locations with to are able that, we have of that exist manufacturing footprint world. complicated a mitigate in that supply

are We in to positive drive continue for momentum to Titan. place elements believe the key continued

So the that, to I’d to with David like now. over call turn

David Martin

to Paul, you, good today. Thank on that’s everyone and with the call morning us

see the the the While we’re into quite work put after Titan, now gratifying was company hard on it’s XXXX, ride team and forward. success for Titan book it has the truly closing our the moving to all One

aspect one is those success XXXX. Financial of of accomplishments just

years. operations of Our in and discipline over the financial tremendous importantly, team midst forecasting, planning, new volatility has most standards of the number focus and for established the last

in XXXX. sales continued and key walk of and let’s after full expand the with which to growth the the part almost our sale highlights Now, Australia, QX our through excluding of occurred QX of of some XX% XXXX QX for – organic performance. FX last early year year from FX the of

excluding as for QX record same from million said earlier. QX year, by full and XX% our those Our year growth, EBITDA capped factors XX%. a $XX off it organic or grew year earnings last Paul was adjusted

Our was XX%. $XXX representing of growth EBITDA million, full year adjusted

was in full from XXXX jumped and QX earnings $X.XX EPS Adjusted in share Our XXXX, went from share on and growth per for impressive share year $X.XX the $X.XX adjusted of in both per to also $X.XX very per basis. to reported XXXX. XXXX QX

And from earnings the down $XX million $XX $XXX capital debt XXXX strength increased driving grew of million balances Our the by million we by – and down cash debt million. QX paid cash debt and on in to working solid by net these $XX net management. last,

time, our X.X production particularly to see was year experience ag result which we segment. leverage of traditional QX, and for In top last expected. the was At maintenance normal plants, and in the line now our important we line it customers in to plant by fewer relative with patterns hours team. stands bottom solid debt is expansion at and and It’s times. more continued by the in seasonality what a same the Our it ordering QX,

was QX last net level performance Now with this Agricultural or an segment and the X%. million, of excluding stable agriculture. let’s million from and starting and year, from increase look mix stands $XXX other primarily of the factors $XX last at the sales, into were segment raw year to part Australian inflationary and FX X% of of lack pricing XXXX. growth the sales was This increased present Volume materials costs big fairly were when in comparing growth. a

from The return segment of in see also increased and million, first XX% last be level Again, last impact result was we to quarter XXXX $XX at in demand across year, the the similar the saw of for profit plants a our gross advantage levels prepare fourth for while year. the to seasonality the year. saw took Full some to business, Australia. growth ag part the continued we with Agricultural segment FX to prior XX% solid needed there year we margin organic production we to compared was negative XXXX. gross was was that normal and which this as for

a and the year. net strong Our last experienced $XX X% for million grew QX very segment quarter. Earthmoving EMC segment or Construction sales from by Overall,

cost year, short to been from million The materials growth just the in pricing raw or other same the inflation, $XX of notably, and volume, of most increased majority while this segment those there year Excluding relative growth factors Europe. last was for increased the of describing or was energy from driven XX%. cost I’ve were we by

all its quarters in strongest of had business, Our of QX. aspects ITM one growth the came from while global ever

the the from or year, represents EMC profit the sales For XX%. full almost million, quarter XX% Gross segment which for $XX was was improvement profit organic $XX of within EMC an segment last gross in fourth million year. growth the

largest the segment the from just XX% at profitability gross in prior Again, increase significantly sales margin the versus year EMC The our the in better increased at profit of was XX%. driver came conditions the in the global reflecting from construction and all business, ITM and in growth in across market undercarriage businesses of solid markets while mining. the occurred last demand our stronger year, geographies

the of slightly to truck The the inQX most quarter. in of American year. in the which rubber sales Like of specialty some the net tightening Latin notably, in from lower partially inventories are initiatives stock, our compared of custom rest some our Sales product offsets segment U.S. down reflecting sales growth were tire utility Consumer year, were mixing QX this last the customer taking off, decline.

full primary the solid from gross segment products consumer notably reflective for $X.X improvement again, the were XX%. nicely products, at margins was growth profit million in For year, of This quarter organic positive mix and dollars fourth segment’s of experienced year. U.S. and from QX in growth last specialty of margin are This the XX%, improving gross the most

year. previous line million the full performance were expenses Our represented SG&A the and with in in on which QX, and $XX X.X% sales net quarter’s R&D

than SG&A overall our profitability sales, and quarter year. This taxes interesting solid leverage compared in benefit this income with very For the our million. provided year, rose R&D the to our a was on cost of growth for our on prior full $XX an less X% reported and our With margin. improved

to taxes related U.S. were federal operating million able to primarily valuation prior of $XX and for net During quarter, allowances release the fourth state losses. we nearly

utilize impact were performance strong did taxes When years Due pre-tax ahead, of quarter, profits we percent position are to release of that allowance a in the and the company’s these the the performance you last income we to in over the XX.X%. the now as exclude losses. operating fourth valuation net several projected

for XXXX taxes $XX year. were cash million the full for approximately Our

million into While translated earnings up cash all of XXXX, to flow in $XXX exceptional has for QX, cash flow million in is spectacular, it performance. a and has been number our above history. Free which any $XX tremendous well year of

our from year. cash the also improved to in previous balance quarter. guidance overall million the end capital management million exceeded drove at $XXX the coming $XXX our We of working This of

and for the for it range were XXXX our the million, middle $XX expenditures capital guidance Our was year. of in

with other Our in about tooling along investments selected to ongoing in maintenance related innovation to focus ag. been has product improvements, on plants, large expansion. various particularly Along bring efficiencies and with our capacity increased and

times of the end the of the at the from year mentioned at the outset, QX December and I down toX.X months As EBITDA debt times improved net X.X our leverage XX end at trailing adjusted of at X.X last times end year.

performance our outlook we’re solid. truly very Now drivers coming remain off XXXX, believe moving fiscal mid in underlying broadly record and that of I to our XXXX, demand a and for the business and long-term

As healthy of you today to the expect our do our performance all environment heard high at in business markets. conditions level comments, by somewhat market a remains uneven in We near-term. supported overall remain Paul’s end from the

gross into, cash performance control margins costs. year. continue expect to also free And should We flow see to for in translate and that stability very our strong this we’ll operating again,

range talked capital $XX million. of to place increase be reflects CapEx working the multiyear in in way, global Our improvements I programs capital about should million the facilities continued manage very remain in and from earlier, improve $XX as This and the our of with selective a also capacity development. efficiencies should stable continuing organized and maintenance, expenditures to capital our to production of tooling expansion product in

expect With improve. strong this to cash our credit that flow, statistics for we continued expectation

acquisitions initiatives focused we improving It focused which strategic We also repurchases, ventures to. they supporting This include to in include and returns. joint potential themselves. core on when will stock will enact for as is potentially our stock be position need strong be growth could the present and will

performance. strength on We building the been obtained on with remaining has will while focused this that proactive in be our area

the for our to over like operator back the session. Forum, call Q&A to I’d turn Now

Operator

now question-and-answer We will comes session. Our first Ferazani Sidoti. is Steve, [Operator open. your now the begin question with Instructions] of Steve the from line line

Steve Ferazani

Good all Appreciate call. Good on David. morning, the the Paul. morning, detail

this ran typical But some plants cited EMC maintenance shutdowns. and seasonality really You your around hot holiday work typical of quarter.

can up Why hasn’t so the of business? was because see was it’s factor. just that You Europe, fast that didn’t it ramped as any we that given to that it Is far? ITM impact that – see, particular

David Martin

Yes.

You’ll business we note side it it’s of continued during seasonality coming it bit the little that was ag little as in – different our was a kind it Earlier in did. of of it’s were to that a out been slower year, the ramp, the year, the year the prior weaker as bit was well.

And been place manage again, solid high production really a it’s So in as pricing well. the thing for business lot a of to momentum volatility. level

running the we been know of the and all And you first but we a see the way of we into through return it growth, through on as the see the as expansion seasonality has half to top so the Ag margin we more little headed line saw seeing started year. front And hot, not well. as end we’re XXXX, only XXXX. the

Paul Reitz

in pandemic, around thing keep mean, during One businesses infrastructure the Yes. critical the ag our world. deemed Steve, related were – mind, the I

had to days we’d North to keep where some So And needed America, maintenance. a South we like pull and alluded we operationally out running hard, to. America, David point focused some get reach on

would XXXX prepared position. start a to in we So good be

Steve Ferazani

supply that Is through don’t some bit extend, cycle sense. component earnings that of certainly into this some chain continuing an issues? issue as noted are shortages chain season, issues, Makes clearly turning large larger of customers we have. have heard continued you your you of we ahead Are your supply from your customers? they When but customers this a of see running to

Paul Reitz

range has have broad a I of led way mean a things. mean, approach kind good at the out internal that are But to we over for a caught we that one the point, strong The the why seeing backdrop. you of OEMs couple their to the isn’t get that confirmed guidance of like you – all that’s past this Steve, pretty point, a market up. Yes. explanation I we’re said, chains forecast, putting is to your great our – starting into feel supply weeks. just things

finished of does and Titan what have is The So for And have lot that wheels that it. on lots partially has equipment specifically finished we’ve in us? seen that, back what and and their I throughout mean a heard job job XXXX before inventory. tires what their XXXX. that done is OEMs already good on in but good a means partially That even we’ve a has done going very that equipment

they aspects say, starting supply their up get forecast, So work it’s deliveries South this to assemblies, caught that our are components North chain it’s as come have America, I in it’s murkiness in our in and other customers creating when and murkiness wheels those of mean, in, we America. I forecast. to tires

this they got related micro two wheels got already to and is is move, the a picture. imbalanced. need This is they a tires, Titan. range broad that is need This seeing So we’re tires. it’s not and and some to wheels issue move, going of to get they’re inventories got more bigger inventory to they What perspective. They

all some moving we’re time. that picture Again, seeing so forecasts the And North, broad, South are this is big America.

we our customers, work with time them need forecasts And get those in line, some stabilized. to just get

customers into working quarter, don’t you’re the through operations are at the that say, look, and of a of the look moderate let’s able second some accordingly. building well, forecasts, adjust a work Steve. some part But mean, these I will hard with We your make is look to some forecasts don’t that’s of and be we’re forecast. take we sense, number make we’re seeing sense going and just those that to it revisions fluctuations them to of that together our just we

of supply of you kind lots, every up. it. driven calendar inventory the these that lot down literally the are on into They’re drawn as some at caught getting turned day, to I complicated getting very changes seeing by so it’s on what inventory. said. a But focused They’ve their been we’re of chains XXXX. partially And off supply the chain OEMs, built their focused mean, they’ve

in is we’re strong. going all starting clear. information But you customer we’ll forecasts so we at good inventory And XXXX point, updated and down year off then situation I the mean, position. as throw this to those believe a It’s provide become that settle together. to some let

Steve Ferazani

QX Sure, months makes give playing is that Can makes on you sense. two out a peak how us in? That we’re since sense.

Paul Reitz

a Yes, good very it’s the start. business. January across a pretty February and good We’ve had

we’re whole obviously – say, that yes, more a a so can’t lot at but it’s And start. than solid this very I point,

Steve Ferazani

cash Okay. strong but year. pay still capital bit, flow as you on And then over at a you want you didn’t million should cash CapEx the to down sheet debt, you quarter on another balance up noted, really terms have Anything obviously pretty in now little allocation? flow $XXX free you of be looking a strong offer

David Martin

earlier give in that that times leader my remarks sense what our that, we grow a and at the things have we Well, business things pursue these exactly looking that can to like will those always opportunistic what continue opportunities But would you can’t come I market our that forecast Again, any – joint opportunism continue and I said are, we was make being things don’t that we for ventures, at markets. acquisitions, be is. really that things us. to strong core for

repurchase as as we market like It’s buying will we not stock, program in the so that. supportive support be need the need We be but stock, stock the the we’re do to. will to we stock every on of day to going with

in the and improve be meantime will continue very ways for at And building returns cash to looking proactively. so to be we our

Steve Ferazani

thanks Okay, for Paul, answers, responses. David, all the

David Martin

Steve. Thanks,

Operator

next comes line Blair. with line of Larry the your open. Larry, now is question DeMaria from Our William

Larry DeMaria

thanks. morning everybody. Hi, Good

stand two visibility and be EBITDA through to we would that. will on question. from So some I XQ have mean, XQ, we from Follow now, perspective? we months first sales anticipate down, up, just last – hey flat follow imagine guys. up I on the where a

David Martin

off know to but that, will a say March to last I year. here, solid comparatively Well, still we’re we have go start to

Larry DeMaria

Okay.

David Martin

is – the to all from you continuing but numbers it give we can’t critical the number yet, a grow. We are – specific

Larry DeMaria

you in into capacity that’s some then just more, you. you And capacity think secondly, to global and some in bit we’re talking and when hear. little can about good talking Okay, remarks, a mixed about the I obviously expansion. Thank CapEx that expansion, prepared because mentioned maybe signals market delve

little So more? you just of give could – bit a sort that delve into

David Martin

I’ll he and large let really chime take Paul Yes. we in to. it’s needs if that selective improvements, in talk ag when Larry, large surrounding about But capacity radial.

And we Latin capacity will efforts so – to have we here our sure we focus that LSW, making particularly run the on and in the America. U.S.

we see the on continuing So focused respect very with that sector because that rise demand to and we to market. of

couple the been place we And put and over program. follow so that continue last programs we’ve of to are years in that in

simple. very So yeah,

Paul Reitz

customers And of needs are at we going to I serve. stop users who earlier, And and going our it’s product we end comments of customer our the do understanding we’re back as to that the of base to needs adjust we’re culture I development. mean, made the changing some the not the of good with

just increase will finding consistently been said, capacity with, large like that at that our we portfolio make out can going further we and we’ve really along And expansion of to do stronger. looking some doing So that continue that in and David is where radial. portfolio product

Larry DeMaria

around And on secondly, then oil, to then just your Thank reset important And a get important there’s last how then discussion from on you [indiscernible] become? a color Could some Indian thing, makes the how maybe us your Okay, update an and a I broadly wanted obviously. going just give business, your Indian this Russian on. on And is imports Russian sense. on just imports secondly, you. business. own – there Russian have and international what’s obviously,

Paul Reitz

years really we’ve the the Review of that about facts we ago and initially talking for we the Yes. go five of that ago. I seen the did that Review and this was D.C. case and ITC we are marketplace when Sunset confirmation five, years imports in feel five been situation Washington, And much on six from filed number the case. now that Sunset this front presented this ago, a We positive the week the circumstances up for mean, years case very a put week. We still it’s we to in have ITC Indian again, the is that the similar years. to get

with Along the out that then U.S. press the use Russian release India information that yesterday produced the the tires are put in in in exported additional are of petroleum to that into we pertaining products

really that what the again, filing for ITC. five that’s case we out and been of made that, the to there addressing so that And that is letter front in original released back we Larry goes a is years

for with changed So care I their Biden. in are it’s India and mean discount are President that said been I do press not a sanctioned best sanctions do not a at about citizens. oil, in as new has they stood world They’re they’re that’s entire situation place. bind again, as They going but to has their economic what’s minister – by the in we Russian release, that front stated taking it any of which

been what form the the all into the know, of as at in amount in big times byproducts XX a look nearly and black you synthetic year. we are rubber. part goes tire of gone have And purchasing, they of up past And oil oil carbon, a it’s

So therefore into the Russian importing converting those oil oil tires, as they’re tires, they’re those into byproducts U.S. – them

we’ve is and the what going been were five around And combine feel bypassing we complete case ago. with again Indian combination that it’s put the years you filed and in sanctions that ITC with previously that And the we that so have victorious presidential again, of imports, place. regarding a in

the that think group the an USW, build Larry, that USW, got it’s and by that to feel the thing, you other saw as that Titan is this I go so I do of exceptional with again, folks And the people. at than most letter the to sanctions. are it’s want do we and week, operating the we presidential unfairly Sunset And that they’re fact the that really case have bypassing in represented nothing’s hit we changed on the from then that’s the even important that Review support, more our tires

They’re do. off and highly tail They what at work they good they’re trained. their

so back you’re current that perspective, years And unions. to when presidential the you the going industrial they if from product mantras two bypassing USWs, the sanctions, And administration our go of big ago, hurting and American one you in the was were the mean, of jobs jobs. are I

again, head have pretty the worked our with union, so It’s the the completely we presidential the feel message we and And sanctions. clear. and bypassing there that union is of

we operations, do in So with Russian are that, put our within sanctions operate place. that all the

onset, is from we markets is that with cash been not mentioned not operational. We from going going India, supply have We sanctions into continue plant that. do no plant. in, the that There bypassing no are military. to do The cash I do we out. We like the do export not

the supply same global need at that critical of time serves of a chain business food agriculture. And the and

that business, with has nothing do follow changed really So to continue we but in sanctions place. are operate all that and

Larry DeMaria

Okay. Very and good clear. year. Thank you, Paul, this luck

Paul Reitz

Thanks, Larry.

David Martin

Larry. Thanks,

Operator

open. the Kirk your Our now comes next Imperial question line with is of Ludtke Capital. Kirk, line from

Kirk Ludtke

Hello, Paul. David. Hello,

Paul Reitz

Hey, good morning.

Kirk Ludtke

Thank you the you. for call. Thank

imports have? percentage tire imports, offhand to tire of do market the know how U.S. Just follow-up the you on these Indian Indian – what

Paul Reitz

out get no. Not really puts a publication the top there’s industrial It’s to – data. know I off my data. that a of hard publication that head, clear tire

have participated there. XXXX. since data not that was I think We in the found being inaccuracies compiled some in that We

we – that. accurate on no, have information I So don’t

an I our on it, come able have now. together, the kind but to If might some answer in week Other that. statistics off of to it we use specifically come Brazil, with right to of my not Europe maybe U.S. the countries, in But ITC it and across give you head top able this that we don’t review. across government pull I you’re know

Kirk Ludtke

Okay. Can there. – making like That’s the increases India through talk pass week. were – originate can price and customers, input that With cost Yes. go down. big tough to I contract over can has before maybe here, I input about it’s on little progress probably it imagine in that, pretty to fine. can last passing has your they noticed number to pin talked respect it hot-rolled you ability in any bit pretty your steel protection time, with spike changed costs, increases that so know seems you’ve a I how get and if on? And tires to in countries through of about coil respect a you onto some steel

David Martin

Yes, take inventory couple into Kirk, we that material we is, raw angles. than perspective. One different I’ll used to carry a from less

up with the to spikes couple been steel and sure contracts in our hitting our respect not volatile tightened it’s respect over have to trying peaks that valleys the last make also suppliers very years. with we’re with to because We

with of so major another. also purposes so end overall. contracts tightened used customers And to is volatility supply less place any we’ve days pricing again how do work every – enabled that movement for lags to And of then them, have and first XX the so we that have to side up one have typically that’s the or up that either we to and index tighten our we us all, prevent that And sometimes way they’re on or pricing. are on it in changing there’s

of combat any volatility. ways So to we got number

XXXX, know, we on hot-rolled were through well. drop as very pricing went we in we seeing As a coils as strong

if we’ll taken the to through with the able and think volatility pretty that that volatile U.S., we it be to to that So production. respect the XXXX. lessen been in manage about through it fully our And expect we it’s actions how able were flows you with we’ve

Kirk Ludtke

safe I a you. costs Okay. that – I tailwind to Is guess Thank were input so XXXX. say? in

David Martin

see We’ve the as had with enter have that was we margins more we’re all now on stable side. become solid you not XXXX. elevated our to tire it’s I pretty right can And it XXXX that. XXXX than throughout throughout able would been say and Well, that manage, costs

is supply getting as of assurance better our In actually a bit little well.

So as shape with that how look as we’re costs. time, well inflation other trying I I as At manage such to think those good do areas think we to to we’re as able we’re input going the be in we labor same manage face things well. on and forward, really

we’ve amount as the side both manage the lessened as – our that on – side again have materials the see could But actions of from we on the we taken far volatility raw themselves, that. think supply pricing to and

Kirk Ludtke

follow-up. on then one back to And you. just for allocation the second the capital, a Thank capital it. Got lastly, question,

the acquisitions you and/or you mentioned the You business seeing – Which opportunistic are JVs. where or – JVs are opportunities? side of

Paul Reitz

I products different customers a within the of a it and core. mining think stay in be spectrum where our it number we’re position across or could ag produce good of in will areas that we construction, but

be be that beneficial. leverage So in that able to will way we’ll a

to don’t those it’s and where synergy, to a ways our That’s of serve – from in reach expect looking. not the cost to that, a it’s the we’re in fit care just looking – and again, would ability that expand our not we and marketplace synergies get in and customers. take are but better are We

Kirk Ludtke

improving the of would on product. range it be So focused

Paul Reitz

Range those and/or both of products products, distribution, correct. of

Kirk Ludtke

Got on Thank appreciate you it. I Okay. a much. very Congratulations year. it. fantastic

David Martin

Yes. Thanks, Kirk.

Paul Reitz

you. Thank

Operator

question-and-answer Mr. the any would Reitz turn back This like I to session. for remarks. concludes to conference closing our over

Paul Reitz

and in to quarter look first I want end really day. of good participation an a results. our for Thank just giving update thank today’s you everybody call to your you. at forward Have

Operator

Thank attending The today’s concluded. call conference you has now presentation. for

Titan International (TWI) 28 Feb 232022 Q4 Earnings call transcript