Titan Machinery Inc. increases profits by 47% for 3rd quarter
A West Fargo-based company announced it has increased its profits by 47 percent globally.
WEST FARGO, N.D. (KVRR) — Titan Machinery Inc., headquartered in West Fargo, has reached a gross total of just under $670 million through the fiscal third quarter which ended October 31st.
It’s a $200 million revenue increase compared to last year at this time.
The company’s gross profit margin also rose just above 20 percent and just under $140 million which is about $50 million more than last year.
Net income for third quarter earnings of fiscal year 2023 is just over $41 million and the earnings per diluted share set a record at $1.82.
The President of the company says it’s been a long time coming for the ag industry.
“As you go over to agriculture and into farming, it’s been a good year for our growers and our customers which they needed. You know, a lot of people forget about the time period from 2014 to 2020 where there was a lot of farmers that lost a lot of money for a lot of years. So, they really needed a year like this to help them shore up their balance sheets and help pay out some debt,” said BJ Knutson, the President and COO of Titan Machinery Inc.
He says despite some residential softening, the construction market remains strong throughout the upper Midwest.
“We’ve had a good economy here in the Midwest in construction as well with ag. So, it had been a long time since a lot of our contractors and customers had updated equipment. Credit to our employees who have persevered through a lot of these supply chain challenges. Obviously, COVID challenges and just really being there. They’re essential for our customers. I’m really thankful to have the great team that we have,” Knutson says.
He says inflation is affecting the company but they’ve made an effort to try and combat supply shortages.
“There’s been a lot of talk around the supply chain challenges right now. There’s a lot of things on backorder whether you’re trying to get a part for your refrigerator or a part for your tractor or whatever it be. We’ve made a real concerted effort to step up a long time ago and increase our parts inventories and looking well ahead, really trying to have those parts for our customers,” said Knutson.
Automated technology is playing a big role for Titan Machinery employees as it decreases labor challenges and input costs.