Titan International (TWI) 3 May 222022 Q1 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to Titan International, Inc.

First Quarter 2022 Earnings Call And Webcast. [Operator Instructions] It is now my pleasure to turn the floor over to Todd Shoot, Senior Vice President, Investor Relations and Treasurer for Titan. Mr. Shoot, the floor is yours.

Sam. you, Thank welcome call. and our quarter first Good everyone earnings XXXX morning to

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

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

not factors are earnings attached under that these materially after differ of available as individually well the Safe included either results a earlier, filed within the Harbor be be available call Please made the copy transcript within for Investor well. as been company's is measures other earnings or, made company's from a the to actual section XX-K available cause website as financial on release GAAP aggregate, to our have of website replay information found will a non-GAAP today Relations contains which may And with which measures, The release, today's today's the XX-Q, will our presentation the information - SEC. financial be be statement most which of measures. and this Additional of well all quantitative directly to Form Relations the the concerning the reconciliation Investor could company's GAAP Form note the to and the X-K in but forward-looking QX can most statements accompanies to in refer on substitute Forms call, supplement will addition, call today's latest it be section Events. within non-GAAP measures. release, filed a as News remarks as intended and the on to comparable comparable earnings and the soon discussed website in

In addition, our on to now website is the quarterly I to investor presentation call latest our available like currently. over Paul. turn would

ran March, Thanks, have morning and QX and to we XX.X%. Todd. start of as good for couple And with gains, really good posted strong We led growth million, A that months highest we over which the QX results operating to early in of of from way to ago quarter was a margins topline improved well really through $XX was revenue supported flow XXXX to released since early the everyone. illustrated expectations at $XX to million EBITDA to recent progress made years. XXXX. our ball that our off adjusted today's strong and That last The XXXX. hard, quarter as a start up gross $XXX our year. our coming were results hit our call company million in with for I Xst in have it this quarter by saying, excellent

team. believe now adjusted going a financial Our was quarter switch very it good a at year. last that. going and more share, the With Again that for well and aspects beyond I'm came compared we're numerous information, landscape. our there results, that for to positive end gears EPS XXXX year-end seven over to in we lining Titan for first were business will $X.XX to markets and our David we share stated up the market

out. order first other quarter number case book that point market like is and along results the that support, of I'd We factors with to continue to provide our XXXX believe in a

levels, high Let's supportive government supported are that balance with strong farmer start off combined large well at future. bodes with prices, for well programs for and that remained positioned fleet, really The aged place. future with by the commodity historically in for a looking at inventory with used prices. supply-demand has commodity dynamics continually equipment levels, low a global sheet prices especially economic These an equipment well demand for ag along global factors, really combined robust environment good at create foreseeable the

provide these So follow with a well. momentum demand for they elaborating from as lot sector a combined through and production spoken as order I'm them challenges, the further related forces OEMs, about on previously the multi-year I've deliveries you of market ag cycle. sure really delays, in support some that, surveys to work and

in So and the as state I minute not reduction surveys time, as to of that orders on at our spike shown as some recent want costs viewed seen to farmer input quick that drop be should have of sentiment. a those overall want a believe pushing fertilizers. a should take comment I just rather I be there those surveys in demand also end users levels the in this but such OEMs and result a

they're mentioned the designed strong you there really responders' the is the look not short-term factors - to mindset you if responses. longer-term previously surveys support noise necessarily provide If in are that that at that I've given at really grabbing those moment, the

good that where XXXX position and again and are do the OEM really believe our things in really market, with for trending order book So at a beyond. looking we're we

many if equipment in mentioned better. to shortages environment a now tires LSW really demand aftermarket, make the products. the replacement are So times, strength amidst reflecting equipment strong existing along seeing our you that perform the you're for over with let's of that available We've can switch still that we LSW

XXXX low road, not of levels much still in you OEM production to if going the large especially it put does the are appear down ag. dent further inventories, likely a in look So that dealer

it are place, is there And why a keep and XXXX that future flowing. meaningful going ag of be keep sector before over we positive good construction, the demand and years. to viewed point at number gears forces this being let we forward can unmet company, an ag ag-driven looking in carrying replenishment inventory just take to to you're as appears retail of XX% quarter it's We positive the we'll lay expected infrastructure So provide our that current and could demand where a earthmoving sales. an represents global year with EMC the into Again, promising, strong segment believe investments is our next business player. gear have times. the that will this the still to to remain our will to continue the that year, road. further stated as levels undercarriage major at further kick last There support into you course, down supports, and In continues look switch

and But levels. production the to demand OEM see to are those orders ag pressure continue meet good really orders. We to current similar is there

that good speak that IT and position undercarriage longer demand the think we cycle, on the about a we of tail Bryan have do In it. the of has EMC, strong past where have touch a plant. the and discussed construction past away We over segment, and this take plant a we worked acceptance production capabilities super our I a just mix business team sit was application earthmoving our second its low-risk now we'll shifted Ohio our tires I So producing and nearly customer EMC very transform know from often in cases, in we to Bryan we company. in to the where have few ag. years, previously the plant in into appropriate. base strength some the really giant are hard want - XXX% And stated to

the level. XX% months, production our been ag recent It's driven of the launch AgraEDGE right around has in products new fact, continuing and growth line. of L&W our plant Bryan's by the In large

Now, our investments, will LMW has ushered along capacity this to transformation increase a with their solid performance, improvement in North Bryan financial the with make in continued we in America.

investing keeps positive that efficiencies Bryan forestry improve also construction and to are a to and moving We plant forward our Ohio direction. our ensure in

Russian XX-Q supporting would like an I Our humanitarian Titan that crisis those needs. update the Titan's here to in gravity contributed and to state organizations understands on the Ukraine of provides operations.

we food in doing millions to ag food also facing that world are the that escalating part our understand the We help from and the situation. struggle shortages cost around troubling and with are world

a our So meet our up there be wrapping will to on continue expectations. global here growing to basis, team customers things Titan

increase eliminating the there In changes lot effort these company sandbagging tremendous forecast, sales impressive, $X.X QX have our performance are our whatever of an is that add to people be production and quality that the global business in a our that expectations. the producing footprint front over raise really strength we staffed, above really improving a $XX made of cash team with just expecting do with million. out, forward now customers our the really through done that job to and $XX improved to team our our are extensive exceptional million previous we've add day in I that it is challenges want full-year But adjusted have the market have end-users' positive outlook we by expectations. years, us ability XXXX in and can expected of million. through in needs. of to are to updates things see, say $XXX or on do position a and us also flow do updated of Titan our that put be our that an recent be years day put in landscape want where we of increase improve do care to take an the our innovative net process, finance I we is and not forecasting nice We billion we've because expectations solid lot to want businesses. doing - there range to are products. Based that increased moving reflects these to a but to expectations keep This is to free driven our things our - I is EBITDA our around we underperforming put battling structural

to innovative our like have better negative continuing with We make restructured the perform products many market-leading inefficient introduce and, us products to portfolio end-user and LSW. margin connect times, equipment said that while to our product I've remove

the implemented perhaps, team our into published Time changing in with to want been comprehensive overall efficiencies a we in models a sustainability We and and have our and recently dealing really just to But have overall, landscape improved continue forward. our are available business has Titan consistently move time our handle intelligence to It's able that our one that the that while we plants changes now rates. constantly implemented share first our website. production fact on moment exceptional. importantly, our most I pricing quality take our teams challenges to again our report.

some ESG been progress. It for on own important is time journey our We our share now. to have

our call understand now environment, fully strong a when to our on With that, Titan not impact continuous have we We commitment we workplaces only improvement within to where over like but to turn communities would the the I the comes David. the of to also world and operate. it and

Thanks, Paul and good morning.

this things ahead Titan exciting far and performance has that we truly for us. we a believe Our many demonstrate company quarter come have how as

million, Let's last year quarter, Adjusted in QX from million represents million the highest was quarter last a last start $XX the grew from growth sequentially with from our grew seen and of $XX quarter decade. $XX is for biggest sequential highlights last profit XX.X% and margin quarter XX% the the in the seventh net first year. sales EBITDA gross our we which QX from from reached sales QX year and our almost have for XX% increasing in quarter, XX%

agricultural Our times business. quarter not we EBITDA the on X.X basis, momentum and Last least, our XX% in the a down sales which is at this I QX, almost $XX capital an of from update at XXX representing few to growth. growing were that in on and fell million are even net already times million, for points tremendous little of to on trailing from again year aftermarket and starting year sequentially the million working with is balance. OE million production XX-month stable here but net QX you with debt growth quarter a increase segment total Paul last a performance going updated you We with the XX% sales will sequential quarter from and continued which accounted sales both see segment healthy and the on quarter, growth. adjusted for performance X.X from relative this year but a with cash strong $XX balances year-end. came you growth had was if this now where bit, were key metrics other in leverage up XXX important

and impressive from for growth in production improvement. we drive labor last workforce $XX were inflationary representing in segment volume Each facilities in and all currency raw regional quarter, margins quarter profit more impacting growth materials XX% capacity the QX million The between last driven balance quarter in global able by was gross other year, first gross of devaluation our growth year gross in for year-over-year year, in reflecting across last of largely XX.X% was relative QX cost the the impact with The good year. quarter the cost a of had to improved also We major business. XX.X% our in profitability to all and efficiencies last last year. first pricing XX.X% from by experienced almost the of impacted after the and higher businesses and sales the $XX segment million X% seasoned of profit our Ag the were margin the adding agricultural

and first growth from the ATMs, the major growth all pricing as XX% last operations. last all driven segment of quarter in last Again, in from with well. raw healthy geographies the other was an costs first quarter, as our, In by currency experienced devaluation year-over-year profit business, which through for which $XX.X XXXX for increases cost material largest sequential of coming profit all quarter by million segment Growth fourth represents It's quarter to $XX with EMC experienced our during sales Construction within as the by was QX. $XX partially higher undercarriage across during or first $XX.X compares year the grew increased of year the X%, of volume almost quarter. Overall levels year. growth Earthmoving favorably the gross EMC from segment the million offset are XX%. million the grew of for strong inflation net quarter Our the million, from XX% or well of also improvement in gross the quarter XX%

last our profit the gross the all XX% sales segment significantly businesses the profitability a largest versus Our year. while came across better margin increase the of in and occurred Again, across on and growth globe, was in of ATM would the EMC increased year-over-year. at XX.X% driver geographies

Many Lastly, custom are sold parts or quarter mix pieces of QX, the products sales XX% world, together million net for the were last Consumer the in came certain segment's QX, with rubber of XX various up of to our specialty mixing that the compared year. including in stock US.

utility $X.X We solid lighter margins the at increase reflecting a in also of which seen had a small improved X.X increase strong positive the in tires sales margins gross truck from quarters of quarter was year activity. the and a XXXX last segment's of Latin for first few had and XX.X%, The America, million, products were QX gross pricing. from QX, mix million profit

with expenses recent $XX were representing of for quarters quarter. Our significant R&D like the our the in Again $X.X and compensation in X% with quarter Europe for and some the of reflecting expenses managing risk period, the increase approximately SG&A and for our sales provisions we made sales year-over-year. variable along include in operations QX profitability increase relative million net in and which million Russia, during a spending to accounted

As points of operating costs dropped year-over-year. sales, our a basis XXX percent

increased our quarter. $X.X reflective income in Our on taxes first were of taxable which is million, the in the quarter reported income

cash tax is represents As that income a rate year principally approximate profits year expense the for the million expectation which the was pre-tax as tax our XX still percent will effective taxes of XX.X%, for well. full our my

our on flow. in check let's cash Now

this capital would which from X.X $XX driven at first was $XX slightly the increase capital our and control year. QX in the the what negative million. was working cash sales, lower spent spending Our sharp which that to at in to in remained cash in million expenditure quarter quarter, million as quarter. operating continue full-year in quarter, to capital our we increase is in target expect dollars by the $XX flow again well last I be million than stable the $XX balances the We

ensuring that monitor ensuring volumes and as cash continue high. we in growth are the flow also relative production to and our making are we have robust While investing initiatives, maintenance will then sure especially our operations our of to facilities very we

repatriated. closing sold Australia a of sale weeks cash post $X first in accounts. operation of of be from been cash few the at this this flow and outstanding were reported, to we was approximately in the paid has buyer The of total As at by gross to the quarter, to buyer able prior few from between ago, end real remained paid subject the proceeds from call. our million the amount end of to million the days the we last and the generate review we the were the which the Approximately majority quarter $XX transaction the

remain capital As end working area. was XX%. time this this calls, we with first on previous better on across in based recent as annualized year percent high focused which quarter the especially sales have is working managing business, the the stable a liquid discussed at of most the our XX%, year-end, capital quarter, At at than of ago on a but growth very we

trailing and, I further over discipline terms to improve is a year days expected the of we end our at this year improve at X.X year-end. there practices on We the are confident EBITDA, conversion performance realized for of our the at future on financial are months which be in XXXX. the end cash expected mentioned outstanding the have of at at of that course that in also remain and strong over created was is this adjusted level to XX times compared leverage. cycle, underway which down we ago. to fact leverage position of our improved of I from in outset times intact XX measure debt that and stable can initiatives course March leverage and the a QX based XX X.X that we our the days position The to days the

sales made quarter showed stronger we Paul the and the $X.X in and we million, decks, for our that We several also free earlier, capabilities. but believe With CapEx cash the our between order and flow million has production forecast backdrop. decisions and over power our performance next it flow improve $XX cash full from the on the year billion improving guidance visibility expectations $XX This our business our stated last first based financial quarter. based position first the on of collective have is with can capital company expect in working $XXX discussed and profitability the we a target quarters, customer of we EBITDA will of for market Our XXXX. that our the forecast. improved latest the performance generate in quarter the outlook full-year and to improved

our gain Our flow the to follows: future. we is half for Titan's as a and in management through target further cash staple forecasted the stability paramount expect seasonality traditional balance as flow flexibility generate gives and growth initiatives to to will requirements the as that It it the year. year during lower cash second us free We create the further progress free, generation, for momentum working working team kept we free and were capital of

great it's is build, to continues story it story Titan's on. exciting conclusion, going and share, in what's to a So

very that like any the Thank have today. questions much. you Now to you for Sam to over turn call back I'd

now will begin Q&A We session. the

Larry, We'll from open. Blair. is first [Operator now our De take question William of your Larry line Instructions] Maria

thanks and say outlook? now. thanks, we're volume questions, I of Hi, and in first, think over line let's delineate A couple everybody for Can between price XX% today. you top good now growth morning the

that making price what I in we're the good past, labor volume. point, in we with and think hiring we've and experienced getting We're to more the this labor going see progress to levels we're that productive going At our the what and production brought on, increasing it's mix is forward similar a of trained. seen

mix we gone have seen that So they're and mentioned in programs very see that up. our the in North gave to productive to with a similar being implemented the some updated new that forecast similar that we continue our as relatively agreements incentive in what from in American our to so volume union are We've increases past past, and we've seen will we've well. nice and we've guidance along rates uptick price

having us expectations customers the And around Okay. your you Can then how that that in about guidance? how you your about talk out How that, are? obviously plays a thinking would one of strike. to

me I'll Yes, - answer that both let from perspectives.

role I chain, the to on time from he first background I mean know spent was their their with The is in in having experience his came in his really moving strong experienced focus to is and supply leader. with production CEO, into CNH and their direction side his that. know relation work when hard good the I a

from if point, adjust needed. can at through significant impact draw - we I see their works needed are we schedules situation us adjust aside I have you production in have as The don't our best this at really tires, demand it's to allocations we see certainly to I to from really of situation as schedules order operate I leadership CNH's sit, strong Titan our going two we the we can where again for CNH's delivery we look possible. continue deliveries not but don't adjusting can side, But our lot that as but At having difficult day point two, how what happened, if personally, that where can them quickly out CNH adjusting have that a our from a this predict say day but this again confidence book. in I'm work So hope conclusions at to day-to-day. I we point a

colors. a On just business. the same, lot the the real It's side of different similar the of are wheels

goes, not that's solution. in productive predictions both point know adjust continue going will but on we hard just in confidence they need our of where to to schedules this and on time get good fence I I leadership any working to move as a Titan sides very situation CNHS the a good they I'm through at believe so to of a things have run are production again, make and been a I But have of side direction. from to as really it that in operate will do continue - lot we company And our

essentially move to you So your changes idea doesn't the on probably need any contemplate Based can there. around guidance if production the that fair big, is say. that

you, Thank Larry.

is Next Steve, line question from Steve of your open. is Sidoti. Ferazani

the everyone. alternatively of morning, to or growth of how trying Good about what drove substantial sequentially? revenue that start a that or year much Wanted sequential beginning asking drove sense much XQ. in improvement hikes - was of by very of so get price subsequent the volume what to was I'm

to not I pricing point about where we had couple our And approach of the we've I'll to we inflationary that, but it's talked our pricing around We emphasis, really response intelligence how things. value and of company, think Well, in cycle now, models as the products. you a lot our constant back XXXX a improving and process, is a want proposition just of put a - we're our evolving.

project And is is that so, year XX-month pricing evolving. a constantly

it everything. change there's that not drives So January X necessarily a

QX say, look you have don't shutdowns, and along that, that if wrong look into way. you with QX, - you forward I think have maintenance. So compare should I the QX to quarter, QX, got we forward - to the But we into plant holidays have as you QX, QX, do we think remember, as

past QX, mean just lot all a the that out. of our schedules, there's get don't the but - have so within you vacation it's QX, the challenges the of you it's talked get seasonality we the about the really production necessarily the to more as QX in you So production plants, for run and holidays. it's QX, not it's that with maintenance I QX, Similar opportunity order in flow, and

effectively in I in off minimal, QX us. scheduled the run for - to to is period take able we're have workdays the really So, a again, is any day. quite clean off-time QX The and to compared and,

and is period to that plant productive maintenance do we that you mind our take. look and again, team, required you QX for very some do QX, do as very, forward So keep that just have in

QX typically in typical fashion? you're see QX turns in looking decline more that into and stronger then QX, a slightly for QX that seasonality

Yes, so pattern, at then feel I point but we this good... historical that think

Right.

our ... about labor levels.

a we're good year hiring. hard globally we to retention - continuing did last like right really say, And So piece. up now. And job we're want on X.X% we're to up work the I

balance good We feel of with like we we're position how a - pretty with in schedules, manage headcount. it So our we fluctuation through do the production we how overtime.

right maintenance hard have normally are. you So an is in just weeks look as running scheduled now, as really have wherein what QX, take especially in you you that for QX, area you and we're at that have to we out the of

very prior to flow. that of kind see continue bit the and seen know in of comfortable So be QX I things a way you've I different, right kind we labor we're but little where QX sit years, labor let I, to tends now,

We QX, we'll cases, and but assuming a are certain in specific shutdowns. again, steady-state with keep the plant some just hiring QX, we you'll holidays labor, I think, by need running, where seasonality have things driven a

give of by other going two. Can and sequential this the year-over-year quarter. than gross strong a a it's you segments the I the Okay, a lease fair. be one, the margin significant about growth wanted on talk question to ask really and bit I smaller little there color in different the we the consumer what's probably again that's you business? lease one about might consumer but That is the to about ask

the There third-party important America, Latin coming And one have mixing nice consumers. - if healthy was, call third-party variety made into our bit grow our Yes, our between pretty relative it. we you we some growth component that played plants tires a growth custom to what, part saw we of of that classified bit hey, in it will, it that first the utility a tire but variety are truck piece. And in that different rubber that we that healthy our business gets out of do to US plus and was And of that we've a world one moves some and of that that strategic areas have and margins some we of business. of little quarter this of of is of had smaller to David. was mix, a as little factors in component go

a By to So, no led all pretty, that here, believe the back those that quarter. three strong pretty pieces way, that reason put from so. to together, Steve, goes it

expect to you sustainable quarters. that be over party business few next least the So at third

Yes.

Okay, then, can about lot just it replacement of multiyear cycle. beginning, Paul, give at the And job. talking I clearly, of the a you it's But the of sustainability focus the now. nice fantastic. I mean investors a right

potential of my interest on we're issues up to at want just key so, that just destruction pressures given prices are rates follow just So given issues on and there. confidence multi-year question last looking potentially demand out any that the given higher the kind inflationary for your higher the in farmers with food of given multitude

multi-year a on cycle. confidence Your

eat, pyramid, start of it the to a to consumer, are of Yes, on and question, impact we, well can going going on no, to is going a have must have I you're would us inflation as the at see much bigger it's where and then food. bit consumer Steve, as much retail continue all retail good think to a I top and as the

of you go guess of to oatmeal all the last instead what we're be. us, or our have know home so thing kids and You having chicken I or what tonight

look at the I impact costs. dynamics. there strong inflation think those we than inflation destroy industry where at an good a at the So, for impact farmers on will input position sit, look that with no we others the The dynamics then top peer inflation are that you is just so supply-demand has the on the that agriculture, of way and way less our in supply-demand where look of I is we're

that's now inflation going that is of wet mother have on just when the planning impact know the has for bit quite because We look with you the prices last where the right world but grains output struggle demand nature month. large and US, see again, around are a high. commodity cycle low, in crop the the been at So is

were right we year time. I at this like third where think we're now last

at impacting OEMs. look your top has overriding really is the to demand with look food of good to I What the environments. you about of start been Steve work I impact think good mean, at see do inflation there been the way I of and metrics kind that they're is about about are down. the some what out But production anything the at I from it you feel especially So has when I talking supply it's pyramid tied X%. and

So at growth environment. you're healthy still a very

have we labor, thing. very good It go low earlier, oh is may that's think at as that then Now good labor. my the but allows is that want as cycle high and and my destructive. do trend manage run ability by markets our you us that construction a from I the look last god, down small supplier people I the The our a so perspective level the about agriculture is mentioned and going such CE, to going wild feel down, to into a and

in because is somewhat good still And production so to growth you're I our positive. think going still compared is be that seeing we're history moderated but there for really position issues, by up. a There industry

manage our we then with labor I've recently can The just are very met sit inventory that into where the efficiencies inventory where levels kind pyramid, customers I I layer still of sectors week, in our And to go Steve. low strong so is but last like the another the levels and like we a fact company demand our as better. are low.

So I'm production demand to issues. from that's absolutely you The moderate you our just dealers, hearing more and next And upper to fluctuations into the under because inventory They're not year. have to goes to is, to the of you way keep going that production worry look this with start in to see what because forward filled are year you can inventory manage got continue have our get carry the we end producing of in our don't the at exactly where day, with got where much their the with get on about we customers to inventory or fill lots. we it. any way inflation

commodity strong good demand, about this well. talk really position, we high for when So just as you next cycle, got year in a low inventory, not supply I multi-year balance year, sheets, prices., strong think but a we're

Komal, Komal your is of Next Patel is Sachs. line Goldman question open. from

to CNH earlier. all just company compared ask been morning, CNH that million already color long-term business great. up more it's business really this I Hi, you've with been from thanks good so or with the amount here? helpful question wanted announced from March release following one and how to doing the on scope press three conversation this there to that for The $XXX Maybe far agreement is is the across late grow the the years.

with way those is the there want the Yes, to within us to develop scope you ability agreements I forward the agreement certainly is increase as consistency then and - the long-term contract. know approach is a move way in give long-term we we

our we We about very the a both global deal world strong. our base feel with ag is base around customer good construction and customer really customer So and base.

and we structure then demand. for and is they waiting adjust got with they that upwards around and with it and can be you for changes more and commitment consistency sitting we require from what sides so can't And their want for LTA, for may us, look it's you that when flex we is that a do them look but be mindset win-win situation to both what the an to

don't have have support if have labor, baseline, Just won't have trained, we to be won't a be we we need to them. to good able process we consistent won't won't place come the we the in scheduling

the produce to we to them a consistency have at for available we upwards easier that materials it if it's etcetera scheduled schedule a there, because from it's get win-win, way to raw flex as get allows labor, us again I see lot needed. So that but a baseline

that's structure a think it I'm they're at again our I looks LTA perspective, not how how looking So it, similar from the but perspective. at I sure

helpful. given term. uses trends of strength the in the then of just or Any CapEx cash major second That's sort near or positive question, it. And other the the business. expect? Got of persisting could CapEx projects Recently in that you

our multi-year well. that the We're for within cycle efficiency of plants investments plans we and to to as across working need for capacity our facilities and productivity under make

range the standpoint, pretty that that we we're I We or place. we a that and with from down we're but up some good for a see market, feel maintain so the we place. And of that CapEx flex kind based can that in in pure comfortable have programs in can opportunities on

maybe that one is considered wheel especially Are last And business. sort the the could be it. just through there thinking non-core of businesses? the Got Australian other divestiture following in robust performance so of anything that just since any again, businesses you're core

Yes, far and it. do business mean, growing more divest black get done we into more could the in are momentum, as business, to that either that to that a partner be our we've with carbon looking sector. take recycling that there I of as especially, as believe in that we've That's opportunities about I recycle the can job is tire there talked players past something good arena some there is and business, or

to that I get the could involved maybe get partnership there it, a S and divestiture the think they would up point think So the not be divestiture. But to for right just utilize that landscape a full would only have still that our that's customer released us. the O probably full I down process guess business I with good looking road help production. aren't again really do it's be good I table the that where, I the that is right would partner can the business say be a lot environmental-friendly really do the it think something thing to on it able is capacity. again, industry. of at we into we on a help this the potential base. more provide very to We They a person partnership for environmental-friendly right with that just,

in and fundamentals Russia of And just that sort it. growth everything business of that's cost do carbon black the happening? Got change higher prospects given are sort the of challenges the

is, I of Well, we've virgin the recycle the as position of cost would agree the get in comment, of your challenges processing to market the cost I is compared had, with we there black. the is carbon carbon think place one proper into because black within

virgin we time room we what with kind and it's, driven will but going announcements and want I the move future. which goes. good So again, direction. up of of part think will And reasonable in a in in more that months come it's the to which I a been it it do it's got I it a that the is you being up few you of that couple bring direction, out, I do think the positive there's direction that at that think last is way gives price certainly, happen, up ultimately of partly fact market are point do the that TRC think the And black in carbon by that at bring into to will be a price, tell

Kamil. you Thank

goes of final Capital. Our Kirk, Imperial to question proceed. Kirk please Ludtke

Thanks for the presentation. Congratulations quarter. on the

One be you're floor volumes when and receipts. capital to follow-ups. in pursuing, do taking business, provide the then you're then, improve And allocation. the steps commercial improving kind of you're they is environment the of steps That's the the through on taking that industry other that any the respect couple while With topic the to the arrangements topic. the business cycle. a would to one Just while, strong

Yes, no, question. Kirk. good That's a

I'll improving I'm last piece you highlighted. just business. So that our with start

really win-win Going workforce. from where we a back we to as floor these in is approach what we Again, a volumes. perspective LTA's a and said that's I where consistency, which bring that earlier,

to we skilled that consistency. are them highly We need we trained, have get that

but So us those just mitigation customers from for are large customers, them that a our perspective, LTA's it important with relationship very risk also perspective. our with that strengthens from

We we we a that focus efficiently we're has into be last value in over the landscape throughout do products there work partner the years on Titan this proven think we hard producing technology it that we quality is to that proposition and can leading-edge hard marketplace trusted I the cycle of So two and produce. put products. the the as

we with mitigation So that business becomes risk marketplace, in the value this as regionalization, is we these think well positioned reflected is bring into the our globalization all with put well that is our LTA's think being very to investments plants. I I do is obviously the Titan that and that

Our reflection production of a capabilities to be again LTA and there to serve that so. customers our those

clear, want to look upside make on. and we effort and we volume what not ways over through So really the that floors above I we entire mean and in see that is us production significant team of for increased your down of abruptly, cycles those very but again of going it also it's deeper give all what at also many wake hard in something far a part over just happened put word, just that well all these overproduce just We've as to than that January sure to one, the as I XXXX is just didn't down a what the increase to we you is we what to a consistency it's and question, quickly the and of great give is doing I'll credit into seen things gives we kept reflection but years during much for the changes us year. our kept and first of for look David that overproduce back that to up it's pursue we've that hard. fell business the of wrong a reflection well. company improving to years, of that. turn as couple your commitments, doing of been Titan XX all is to It's to it and are Again yes and what all lot the floors credit the position that and where then has of but we and so last working together going but in accomplished second to I been that question, accomplished or answer not do place. do, the those are as and improvements the posted want we're today. capable improving I to agreement I here team been in we we provided some and multi-year make over structural facets in really, and do pretty accomplished we've business, something a I XXXX for this We've guidance updated think come cycles what's the

you. better. Thank Helpful. That's

Yes.

your of second question The don't regarding capital know. part I was allocation.

the today, let comments at believe what to growth me, nothing sit constituents. we leverage the return business at as as all we quarter. after in flow, can have me in make company, and and that well the cash we position we ultimately our us to look improved that made we're investments take respect in Let to best of stab you're we much try gives the shareholders initiatives point the optionality need that a to a We providing all last really to possibly the with better flexibility this as after of the there, has changed

for we and some decisions and And we will believe a make position to us options in everybody. really we a our the those continue so have with and opportunities have not all that lockstep in will we're right in leverage board posture maintain and good and - conservative take of front good on we

appreciate what you're I the authorized what remind us buyback? - you Could you. Thank to it. Great.

terms buyback? In share of

Yes.

have, ago Board. in we an the we put had million. authorization A it had, that from of we was We place, years couple $XX

So you've quarter? in exhausted first that the

authorized that by for - purpose. specific that the was authorization special the Well, for was a That board.

know that could million $XX outstanding remains as buyback. So you

million. $XX So another you could buy that

that. - appreciate that's Okay, I

Thank Q&A That you, concludes session. our Kirk.

pleasure my remarks. over for to it's to the back closing Mr. call Reitz turn So

and forward everybody's touching Take with a results. Have participation call you appreciate second-quarter care. look on QX to today our base So our I in good day.

your disconnect the and XXXX your lines. Titan now participation, quarter call Thank first That Inc. you webcast. all may for International, earnings concludes you