Titan Machinery to Close Four Stores
Titan Machinery Inc.announced it will close three ag and one construction store and reducing headcount by 14%, taking action due to the "continued industry headwinds" in the ag sector, stated CEO David Meyer.
The company's preliminary fourth quarter results showed a revenue drop of more than $217 million, about a 31% decline. For the full year ended January 31, 2015, revenue is expected to be approximately $1.90 billion compared to $2.23 billion last year, the company reported.
Along with reducing headcount and the number of stores, Titan said it is reducing discretionary spending across all parts of the business and is restructuring certain employee compensation and benefit programs to better align pay for performance.
Mr. Meyer continued, "We are implementing a realignment plan in the first quarter of fiscal 2016. These actions, combined with previously implemented initiatives in our International segment, are better aligning our cost structure with the markets we serve."
"As we begin fiscal 2016, we remain focused on managing the controllable aspects of our business, including taking steps to further reduce our inventory levels and operating expenses. We are confident that these improvements, combined with our focus on improving operational performance, will drive strong cash flow from operations in fiscal 2016 and better position our business for future growth opportunities."
Find the company's news release here.
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