Titan International (TWI) 31 Oct 242024 Q3 Earnings call transcript

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

Third Quarter 2024 Earnings Conference Call. [Operator Instructions] It is now my pleasure to turn the floor over to Alan Snyder, Vice President, Financial Planning and Investor Relations for Titan. Mr. Snyder, the floor is yours.

morning. good and you, Thank I'd like earnings third XXXX to welcome everyone call. Titan's quarter to

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

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

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

on the over In addition, quarterly measures, but are to the would today, this well will financial website. I contains financial the like information be transcript measures a be turn to be today's today's the investor website. to copy measures. The Paul. quantitative refer GAAP to of latest the non-GAAP supplement, now the of soon earnings earnings for, GAAP after as all the to discussed available most most as comparable accompanies presentation, may presentation company's a substitute comparable call call available measures. today's and call company's is to Titan's QX non-GAAP not A replay release on of directly the intended The which which remarks release, and reconciliation other

backdrop ] our [ Titan Thanks, everyone. by operating our our Alan, and created continues in The several to conditions third bright which continued quarter markets. morning, proposition results, support against products challenging One included and of the good end our environment value spots

of lately. frequently One customers time that these from bring I and and a And visits, of enjoy really spending is customers doing how and I've the solutions during us with been our lot competition. differentiate innovative that I end their things our hear doing to improve the products operations users, really

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also and to in OEMs markets that work participants better that many help compounded adjust this we slash industry dealers the game by lean including related desire businesses, place, plans to We along the production the import better enabled market that I levels. have is known, us management David, do wrap focus conditions second plans our match low. favorite continue pursue will direction about to production demand, lot sheet time you has both a dealers with really for fourth and their round are these policy financial number the that enter we've trade it they're cash has what is do up centered off OEMs our agriculture with initiatives we OEMs to flow inventories. manage to is as factors that's see really most rules is cost markets, that some what deliver topic insights some of will as transparency the the excited their anything as talking above and more demand. to Like ]. In OEM business to products. later. What in been and clarity, will of on level with of from XXXX that past. in with in their is the on improving at pertains we're thoughts we it to that significant underpin goods to on now discussion the free year when that we're for drive what growth. our a able get inventory when assertive you and lots. going for destocking destocking continue we guided really being round that turn, hearing really Despite seeing and on to most desire spend think operations, place of XXXX pandemic to with as equipment a we're commentary of a opportunity Obviously, thus the now focused areas on. Everybody's much taken a comes goods, the seasonal term, we of to control The we has heavily the and expect at and been of it's especially This to we're seen saw is can the want drivers the XXXX, about. put balance end policy. key event initial the week's influence provide it XXXX quarter look near in challenging leading to export on share normal presidential place, course, election. do But days these think These as year, of [ actions next we've post capital can I we've then, that's our than a Once macroeconomic accordingly, what our

to For then see standing of really will while point want with call working busy be think we mark way drive it this for today's clear I a means the this out. In cycle we we the to examples low for on is actually Titan, no positive still and and we earnings of One I second hopefully of our us. release, present plays thing how destocking what are be by end is will are this several future. of provided as the the stage our growth as

and connection one marketing significant are and of one meet led a you successful which and savings to had expectations. of coming that performance and that into attacking we we in a seeing exceed though, fuel many now. the are for expand tractors years and bottom soil selling quantifiable, this into which opportunities have top get tractors. The you our field the We of performance to LSWs by a to programs then, has been and line midsized isn't tires, this, impact On and to time for putting able -- farmers predicted. But LSWs their marketplace just users, across point. about telling condition important tremendous of This our field LSW future to reinforced that And very me been results results to farmers improved more fuel XX% we we that on strong the above has is is business, compaction. combines, that them. the of where a XX% see and primarily with our again, reduced farmers you course, is highly just the most with our is getting readily things been in continue again, time this range the end The discussions variety date, sales savings, focus get LSW at the lot every our has is, of being is can opportunity many, to larger handle also thrown the of with developed

basis. market, emphasize market, I So, want talking increase the efforts a as on of annual an target tractors is to we tractor which XX,XXX midsized to about big roughly we're our more

just into look a of needle So, help and at that, move will you if EBITDA. fraction the tapping on sales our that

hard quarter ago, weeks innovation can several of a machinery to alternative for pressures end consumer also that It's where our this LSW, our military in from operate even another be reclaim used. a Technology. really this VPO these our away the segment. We're solution on tweel down advantages press in to and can inflation technology an presence working a various Moving wheels has issued highlighting which fits well release new market. and as use at variety is versatile We It we're to excited applications, PSI. X

of supplier to years, was tires Going back military. meaningful a of the Titan number wheels U.S. and a

sales to Titan an just mentioned I about technologies you and in this VPO, if become channel really again. potential LSW take the optimistic for our contributor we're So, these with and restore important

line focus to of from on that our acquisition stemming continue Carlstar this year. We earlier top these are synergies

acquisition with Some be is to these Titan the in new which and the have Carlstar consumer high-speed that their team very business. past. the tire brand that has category been team Carlstar Titan-branded key we're expand include of that, tire. It's the since to offerings combined performed across with well, up products also continuing trailer new first going doing has earlier year, opportunities where into Carlstar the focused a Along on the but Titan opened being geographies taking then the entire this wheel

see good weak to again, but the improved our really that that this, economic in past, not of historical be all of seen through consumer of us historically something talked grow, the helping Ag marketplace. the the is to important part our come weakness Again, we've phases of our in that we've as really the highlight a for this to element sector, really this strong ability And from we benefits in cycle. expect so, but OEM-centric attribute through cycle strategy want business. this the drive is And as opportunities I results this in aftermarket some the offset well. An to we just about business

market basis, and to down on revenue it remain you total OEM business roughly of Ag, the with pressure, now and to activity, than extending farmer early a reports into we down if destocking point purchasing goods at interest time, and This conditions, primary XX% as the aftermarket gears sales. we continue optimistic are as is our of pro our rates, on our be that and XXXX. a briefly X same decline headwinds finished under year, starting get for digits accretive XX% guardedly inclusive in So, results. Switching to compared high-single now Recent the more look touching aftermarket overall U.S. the in especially election seen 'XX. abate to At have into we will incomes plaguing of calm account year-to-date, Carlstar sales forma

As earlier, production do about and we the sales. wheel positive obviously, the positive Titan, to orders tire similar lead note, of for destocking. it's of impact expect that of the reaches for the a comment, and a talked better goods to sooner OEMs that finished at because our conclusion, we On that

the us before that. So resumption see it's OEMs growth reasonable would to see for some

Secondly, we business to expect solid. our remain aftermarket

farmers continues machines to age, equipment, demand to to noting going to also It that's equipment need As bears use and replacement drive those ultimately continue also that their the will be for replaced. tires. fleet

planting that increase a population in we've things the basis. global many past, farmland increase on those growth, support in are an will times talked protein Additionally, consumption, in about acreage

for long the much demand structural the drivers very see term, still us Over intact. we are

OEMs. from one-stop shop relative demand solution portion OEMs catalog segment, also seeing our better strategy, OEMs providing our is with business that to as and consumer customers, aftermarket. In farmers, the product compared and of a our aftermarket the the combine to the comprehensive to You

down, what see dampening would and of the have years. these still than come other Although as purchases, started impact -- put mowers, food and they effect remain they on like for does riding recreational and being consumer-type interest rates a gas consumers have are things to by many higher That squeezed vehicles you prices.

that suffer So, again, are in going to of naturally environment. type items discretionary these

higher a to positive a segment, leading we rate over have inventory the noted that equipment as mentioned, are interest off-road would of cooling primary series drivers. higher interest last ahead, further on and of just the inflation. Switching further EMC, cuts looking would So, a demand, focusing be same rates levels OEMs things of

of the of in fundamentals destocking, to comparison the terms EMC underlying aside market, of the X from segments. relatively other remain the impact the In strong do strength

grow to construction U.S. in While is in continues Europe stagnant, activity construction fairly 'XX. nonresidential

Additionally, that within area it's is segment, worth mining within the EMC growth, one for key the pointing aftermarket especially out channel.

which about as kind of here, product me now, at strategic premium by supplier closing a manufacturer Titan Let is and and to initiative wheel primarily portfolio going has Titan, partnerships. talking Until underway that start positioned supplier products. things itself expand of via to do an tire and off larger-sized important I'm our

Therefore, product model and and continue As categories. good opportunities that we've we strengthen ahead our Carlstar of also different strong that recognize base ranges share. brought and distribution and products in now ultimately the the one-stop we are really we our brand, to expand buy on seeing many size many customers wallet acquisition, more really to our product extend that command platform, leverage some from

costs, downturn ability the controlling and customers, in its of but work the Titan benefit just and identify conditions team. be the market for us macroeconomic stage more future to It's partner that it shareholders. In product and of the in summary, via Our get to set do turn, well although top positioned of suppliers course, the will are of by our with Titan through benefit development not to will segments growth. proud really I'm difficult, continuing and

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

Thank managing thanks $XX Paul, and by flow $XX free you, of to working in million flow driven guidance downcycle. today. Relative $XXX on cash quarter, EBITDA to a million. listening the good our appropriate third Revenues focus for levels capital were adjusted for the and quarter morning, with bright of to million, everyone our in the cash spot, obviously was free and

sheet cyclical of expected, to fixed has And was bottom a similarly success reversion seen absorption. Stepping in XXXX development, this aggressively hand, debt enter a On some in enabled back, continuing downturn conditions EBITDA. touched we've to consumer relatively been year in in turned our had levels, theme Paul on, due impact diversification QX excellent the That deep growing has also which recent is thing to on, those us our the navigating mean to we cash want level. modest paying resulting unprecedented while our cost flexibility to to which ledger. even our customer bottom. of our XXXX net expense Paul Xx Carlstar, in through also on out side with anticipated ratio weighed what the remains advantage the leverage maintaining aftermarket of a positive the to relative debt reduced And has adjusted we've acquire of solid. Carlstar unusual to critical which important the brought invest a took has by business touched was still us unusual our asset, other We was I interest us reiterate on and be a key larger for down of while allowing our guidance, in than significant weaker approximately product the is very that rather was demand a segment. the an while line balance downside form the which business, in memory. that

to the be back XX.X%. results was and the the current adjusted compared ago. focusing gross product consumer those business. top of mid-to-long were a turning and Ag segment this, margins conditions. But consumer our growth was driving all on On contributions was On quarter, of expect across less third a XX.X% to gross X.X% we EMC opportunities segment margin X.X%, and aspects innovation the legacy larger margin Ag despite XX.X% segment adjusted the basis, our are business are at cyclical year to for term, aftermarket Over significant we than

Now, this normal. disparity isn't

world and the this we the much across were our margins margins which very but quarter. volume lower Ag higher, the Our plants contributed sectors are in EMC normally saw low that our in to and the

sales Carlstar entirely for increase of can last $XX particularly an compared at Our that to are Carlstar. third centers distribution million or SG&A for the the in was to model part $XX XX.X% This be year attributed million. SG&A operating the of quarter expense the integral acquisition,

continuing spending management of midst appropriate in and global watched reduce have environment. Our the taken closely costs teams a to very have actions inflationary

third going in synergy $X.X have on in ] to with to into compared $X.X to year, next quarter year R&D relates Carlstar. also go the and those we're opportunities already investments in were were [ synergies. R&D ago. the portion million on going of We this A making million we're expenses that a track

Our flow operating $XX million our and was operating quarter, cash was income the $X.X million. for

working and a we said receivables and to I management our inherent particularly the in discipline is earlier, to inventory, quarter. As for continue that's focus management, both drive capital our contributing strong Again, is teams, positively culture. strong this in generation with cash a it

We also a a quarter. for quarter-end, X million think longtime program, we million excellent X the shares holder, basis. $X.X from drive repurchased of Subsequent value a our an on over our to equity was back for million used our share fund to opportunity long-term also for We shareholders this repurchase shares little cash total buying to our MHR.

was compared trailing on flexibility to the XX-month which will to acquisition Carlstar. stock We as continue to future, $XXX X.Xx EBITDA we of in right will or $XXX XX, near cash at debt adjusted term million March repurchases some adjusted was trailing manage we discretion we flow. Net in after quarter-end did or while have the XX-month EBITDA some initiate use Xx market million open the the

working on without tax discussed to a in this rates with As again since rate rate, the initiatives in quarter. the increase XXXX. this deductibility. EPS to due a interest limitations our quarter, effective tax also income, We're along important number higher our help favorable which income included into heading the frame of tax the tax was of drive right I'll quarter net U.S. domestic in of last more future, is to drivers quarter, significant lack significant It compared impact now on third the but foreign effective it normal last to a hit the was significant benefit relates to expense levels. case expense had I it and on

tax And note X income. is that the XXXX. to foreign million million related primarily important we'll in so, we to full I quarters, rates It anticipate have the year normalized future. expect of cash to approximately we see in approximately taxes through $XX And first the more $XX for paid pay

first was higher much domestic talked our but the foreign normalized which more due the mix tax than that I've rates versus approximately cash for in about the XX%, income. past X rate still normal, So, the of months, to is

for financial the Moving QX, OEMs normal and impacts see to dealer to discussed. to it's guidance in our continue this It's pressured we year. to due the be and quarter QX, both will exacerbated I fourth noted drop Paul a destocking near-term and by market the seasonal have

for million. quarter to of our $XX ranges million are EBITDA $XXX with fourth million $X adjusted So, to guidance $XXX revenues of million

have cash free Our we're in cycles. free business, and cash but approximately deep important we really driving on hard flow perspectives through trough, eye this focusing our experience on managing still on happens. breakeven, it managing to when cyclicality keeping recovery flow. It's while is have We're diligently these our an

financial accelerate to putting solid, we're in performance. be future position and continues ourselves a condition Our to

this for time So, you morning. your thank

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

comes first from Our question Sidoti. of Ferazani Steve

the the I Is Can consumer going asking the the call. different margins you pointing with the consumer to down other sequentially, if variability about the help segment. I'm segment with performance know segments? of XX% the year-over-year, in improved. wanted your was sequentially, significant compare there margins it me but that? it on by on I I can the comparing something X it than but the healthier Appreciate not in detail start segments, to

Yes.

by business and going we healthy heavily levels But through -- Ag our weighed that margins, segment, the Ag the are quarter. there. and As volume obviously, did well we mix very had saw, is weighed aftermarket the that, similar really of consumer global in EMC also that a the plant hold down through including plants, by

versus Is X? consumer there significantly different business seasonality in the your other

the volumes little in the past. in Ag mind, of they as EMC, than spring see in QX than low more is what EMC into go even talked Ag, about is terms It's cycle. to very prepare But different a we in too, we've keeping as their and similar

So, the variability seasonally, but is is weakest, QX the less.

Okay. That's helpful.

there brings get about for to your been talked we Paul, to cycles Ultimately, market crop market before? various that? back? wait these Ag You -- catalysts to Do through going Or prices be the in it again. any having near-term this is is that opinion, drivers going being have

think driver. equipment. a point, the is Yes. heaviest that and at That's understand We of farmer strong income this pull-through the there correlation then purchases all between of

And so, well, -- focus this. because me let I really say the -- think

You're the lot comment Titan made, a you through right, cycles. been of has on

of be our the do the extension joint development a via at, internal underserved changes of products. or we going mentioned, and tremendous do And That partnerships, own of in and we cost a really at we've looking reacting need overreact. amount can direction what which place so, strategic are experience, to seen that that into don't way, we that the just either control things different we're we favorable ventures, move again, our can portfolio. looking a that we're in we But is measures two-pronged. our doing the going product have really how products beyond But we're geographies. plants, development. can how where our of making and this new are to really is in done, And done There's expand be with also sure possibilities I've right putting existing

model If the you not again, and shop see should did say, we Titan that have the look opportunities markets I to at the and how eyes, really world coming or opened just business has, with and and now exposure one-stop that we together, gain our couldn't legacy in currently, Titan exposure. previously, there's Carlstar

out actions to be we we're crop in a downturn, know it to going waiting it rates, require be that of going actions how needed happen could could be taking beyond -- it but could the presidential I the the are all that for future. up, prices answer for catalyst -- come And wipes time, just but so, take some the election, that have no which to is us. a Steve, using we're us to for think And sandstorm and instead idea, this isn't somewhere, that crops interest the waiting well set up for we right I

Paul, combine not that Understood. repurchase, from to expanding smaller markets, Mr. mentioned Appreciate being Chairman, if I the sure couple typically, questions. of of goal combine One, is a weeks your a potentially announced markets. going ago, into resulting could on about that. think you to share of here. which potential I you wheels, smaller large talked lower tire Taylor, a them more with, on Army thinking when those that you And margins, I'm just would that see contract. want couple think I'm I to understand you to want guys response. the I the U.S. as comment would because in competitive, of want

So, you could as well? expand those if on comments

Yes.

Morry's substantial XX of you with back a be think legacy I comment that Titan, I was ago, base. going more sales used would really look part military base -- years our back if lost. to his say was at

gaining is those sales. this is is opportunity so, And back shareholders all military that Titan's current to accretive an

doing improved out that with of And call LSWs, the really with with so, like the good globally. we're about at again. And military small go way wheels. present do in We now looking angle we're product can all base can and talked different what manufacturing innovation, where we up figure go is do let's some how the our from to do we We a saying, the past knowledge large. we have can the tires. it the combining go this capture VPO, with the to can We

where talking it. think upside. And shareholders. there's for doing Steve, something any the been some everybody, we risk and Morry's meaning have wow, Carlstar not now saying, a back answer really And clear not X you I competition, together. find we it that's and the now It about strong We're it highlighted. negative, in saw doors. can go distribution, market a [ say that's changes to talking because been you why get the a backing We're are can point or and so, take have and in some the recently, well that tires -- attractive, I'm getting that's and in as product is what of a you where and think it But similar And expressing release lot opportunities this -- to that of remembers ways about, you of looking we're started aftermarket and these But excitement that's way into I comments some strong the all we've see And is to all OEM -- It's have he it we past. getting and military about not press accretive, to come and does make and service wheels product across talking brand we be also there's talk smaller it's when current at how in currently. And that Titan opportunities. your brand the strong really more specifically, about that's these lost we It's it's has something of XX all that offer would it. there's again, tires smaller growth path an get we're smaller. regardless it across some of for years when that a to strength or of that ago. see similar these -- and good surface. was go are, and again, there about provides brand platform to military I combine talking next you competition, now, that these your that, with where wheels. the opportunity competition ranges and we're with why sales grow accretive, back. And question purchases support, And less more. we And on a we're opportunities. companies because together, that again, of to markets when this us then, at the smaller we I I of less think, customer, care distribution, a and may bring ] I Carlstar's may that when of and the of But good tires would expertise similar to Carlstar a bring at the we fits XXXX has or say it And as down can diversification Titan legacy more would when be possibility. our us Titan the learning more, base referencing really been be product wheels, looks larger year for distribution them less the would together these with say, question on understand that creates realm both competition be the where on as And look universe the of it's that on actually products.

you're talking consumer market? niche market, Carlstar, with that about broad like not So very very the specific this

say You a Yes. The tire small not sudden expanding looking I still just these it's about small when some pretty When XXXX small, big. they're It's stuff and again, prongs talk of relative. damn and trailer when -- LSW. about compared talk I tires, we to tire, turf those you're but of got at a every our Carlstar along little wheel in it. universe, It's that pathways, into out exists that's right, there. all a

Brian DiRubbio from Our of question comes Baird. next

mentioned A -- Paul, Dave, couple you of much expected. were that I was you, lower it you. or than questions volumes down for think maybe

that. the you What of rubber and on rate And parts couple in costs X quarters? also in has So, how operating impact margins? last increase the the butadiene hurt was on

question. Great Yes.

margins our a that's that's volume us. at much year That's were ago, really the we the look -- really killing you pretty where change. If

at it just pressure not suggested perhaps seeing the are customers on some us point. enabling on a like and of little You bit you to this pressure pass cost to

impacted leverage. bit But that our operating So volume. of, mostly or price increases there's it, cost a little it's call

[ of at are the plants they provided ] it. rate what point operating you specifically today? the could Got of what ever be And have sort any and

No, in our we of don't about of differences Ag anything lot typically the that. we EMC being then segments and and Ag and Obviously, talk talk about our are EMC, plants Europe. the a global, or between each like plants

those at, -- if if you well average we we so there's And of But impact have leverage the mid-cycle now, That's that. saw material now. the it, back that we're and each reason that as So, we're those see get recovery look of that the cost, the 'XX, different we things. expect -- plants we that the peak, at be to you a margins deliver. -- level in if no go at levels seeing back. 'XX, leverage steel and sitting to margins we operating call we these a of kinds to volatility little why operating you below are But able can't pressure

Understood.

in sheet, some How of -- out the trade capital squeeze much opportunity balance have out As the we low trade quarter. you capital working that mentioned how the more you sheet? look you reduced more at balance the of working to

component a the Inventory key there. key -- Yes. is obviously,

then of AR pay control good suppliers. and our really have We how we our

always there levels, -- watch balance. So a always very it inventory But closely. really opportunity, yes, there that's we is and

XXX the than days As you to a percent be it of demand or heavier towards see will sales environment, of as we in next levels days, a well. it's But also current XX with the the what that will want production mindset what be. it's

levels any I pursuing we're say, in time. inventory period of would optimal given we're So -- relentlessly

I'm never the satisfied, So, But right? we end of well. day, the it at managed have

as in go an 'XX improvement expect pursue continue So, you capital see and to into working optimization. profitability, to will we you

can our that be factor So, contributing flow. still to cash a

together healthy it, driving balance in sheet. So a again, all plays

to into quarter-end switching Good balances, on just today. you cash the Understood. portion the And that most to maybe drew dig repurchase assume of drew obviously, Sorry, you that just is overseas? to the and rest. revolver, that didn't closely Q cash the shares of a cash post I the

carried of majority offshore. Traditionally, cash Yes. our the we've

cash in and we continue We as impact, that call move we'll We that. it, pay continue down well. to -- cash cash bring or without did limited use the tax around have do do earlier XXXX, transaction replace any that to some, that and opportunities for we'll debt and to

opportunities So at next XX some right and the to expect we're days. see looking happen over those now things

business. as International, forward Is that sorry? these been it has a been discussion core sale of time me, Got but in a more the last Titan from within is about going it. you there's still possibility -- a potential Italtractor Or mentioned something Titan question the guys Wheel over while, years, business to that time And last bunch of that days? consider for the

into. From a we've perspective, well it as a business management that It's we a view invested core business.

of It growth a But been divesting in discussions of good at brand business. if level, we core approached, a job to -- had I our past, they've behalf approached in Board, we very pertaining in with the of does care mentioned, then, ITM. if the margin with where years. And in say just always profile we've and always, profile strong Titan And shareholders then point a that's good customers, our So the recent great a as have thing a talk to the to reach not they do. but case fits performs the those and taking you the ITM, about which them like publicly, we for would feel of on right engage discussions. we

think If say, it Board see would I such. we David treat ITM, our the and is and and Cecilia with as business, at changed. discussions. a it with Oscar, team along from I really a So, that in But our approached, those position I management engage core hasn't management how it's would standpoint,

about plans Dave XXXX will fact, next and there them. week be In talking with I strategic

[Operator Instructions] Zacks from question Our of next Lantier Research. comes Brian

It's morning. this subbing Kerr Brian Lantier Tom for

to I little think already, color. couple of a on these you've more touched a for ask just I but bit wanted

where tipping potentially of about at the the demand the potential prospect market? for or shows trade shows you you And like it recent these tariffs after there jump interest feel related pull-forward point Ag from being trade elections? implemented specifically, any have a could there to is any in the was there's new talk feedback start market any in talk If do rates

Yes.

the and the are I point, in at impacting way. January think waiting our hear lot a they purchasing come we in say, In want what this amount activity to the through I from their rates, drive interest market. different to been industries, of meaningful pertaining in folks rate currently would business, is, of interest meaningfully a then channel. keep for inventory is the also them decisions trade show down haven't discussions and to in

effect larger has to due is to a rates, post-pandemic we has again, that though, partly the on would of destocking, interest taken wearing the what about in relative destocking. when that destocking you think off, what I our believe burden business talk -- due market. and over particular to us I impact we're wheel partly tires place the this What business, in think with seeing highlight, is our had we

OEMs marketplace. our with and or their line, some this been get our in we on in -- you're inventory having what's destocking. production their the in year in by as so, going just because And -- the purchase to impacted being sales get back the inventory positive uplift line more XXXX overly see inventory sector to going our We've back

an do we're I so, keeps out is pierces too bottom goes. I in us have things is a that that to to think the feel XXXX going would you in in there's through relation going and it out And the think I extrapolate bad, the where is regardless a tendency market: trough. the going. And for to to far it's I and there market like effect at happen. be there. say the do of when this catalyst positive catalyst that times trough the this just are

being certainty future towards paths. think clarity direction I it election goes, will done, whatever and the least provide at

seeing fun for again, for innovations. a we is have do our me, fun in at trade point as the subsidizing about where we we more 'XX. [indiscernible] things team where do I impact excuse I think us the think will I -- to break some where so, comment, a think just subsiding, is, point But key talking thing add one XXXX at in destocking and a us, catalyst in have can And -- shows are through positive got you XXXX. just we have start

If and were the been the Titan energy at good environment it this in the Show, you Progress Farm at as the the booth is year has as man, just past.

what we're tremendous around that doing energy up have not and going, or We just we're it. saying making where

support that I think that eyewitnesses comment. there's enough would

what And innovation we to think out I in have. replace They're downtimes again, like that ways for do that. innovations clearly better. can just your looking get more So, currently this, aren't people can have they because looking stand to

really perform so, do them We the line. your that's flat, fuel where awesome can is can golf help their about a going Technology, their worry VPO can time the make And better. this equipment you bring to about to efficiency, on We bottom compaction. and can you telling savings we start not the job soil The new course if and out stuff. run have their pretty

the around actually the downturn. little energy I innovations gets so, a during think And the stronger bit

So stop. I'll

enough. said I've think I

the into performance I work that, those That's increased great. well, Is sort of more Is you piggyback guess, it the the conversations? a same? it with that In military the market. you driver they're for? sparks the those Is sales typically looking to -- -- that on when and pitch go efficiencies

great opportunity we've said different. segments. but can like both, because combine great we It's and keep into it sales, we earlier, core why our think And these And Yes. as is this technology, I I but military lost this We that's a I military X. highlighting brought we've the think -- and I it done innovation. all have

we talking have has we of part our some to some a really different reasons, weren't within it's military, -- knowledge. Titan of just folks then In to need changes that to military, be get number within and I the just the our put being where these up. lost the of do honest we it's with to where seeing and and do here tried And a contacts we technology competition. So, and there But contacts open in experience, to with do getting I you, our we for him experience candid then, there. -- do to the salespeople we're that. able start excitement start And you, different about we what replace business with order now our key obviously, in involved, can years, deep in than you're the in need and Morry's team come -- them is seeing the knowledge. and right We think through just that military through same same changes you

the because he cow! for and he what like Titan. and of so, being knowledge fold really that's able me, is use And Morry be think excited what part his This our a nice experience is doing. bring "Holy That's I to is into about we're to where used team

that it get can get were like ago. accretive lost change ago. these a while -- future not go it see earnings. ago. sales It's where we're it to is we about back. would we But avenues some Let's all X place go again, took again, that it years again, a be back." now something were But because years lost This XX the talking And

Great. do count on And the -- where for don't any one be you of a guys provide may you year? housekeeping the the guidance I model. at just share think end

that on don't I million to can top of the that, you. but I want quote the it's repurchase. in XX head of give my recent to certainly range off the because

question from of comes next Our Kirk Imperial Ludtke Capital.

magnitude so the able if either line cross-sell, you the or top I to of had anything repeats. off in cost a the front? But for I are are advance was synergies drop I and have share to saves am I or Carlstar. -- opportunity of with these on you sorry, that curious, couple mentioned minutes, apologize you the

don't the everything talked we the of our want We specific see coming time, exciting we still synergies together. But At haven't our planning all coalesce you, all happening what's earlier And I put we're can in same teams. I tell expectations together for numbers at for of the it's all until to the -- this sessions together. to and commit to year. again, about in it point XXXX. midst We're with pretty yet the

and to from track. conservative overall number. on believe perspective, on cost-driven. as Through had we for the growth to think, to $X $XX with was so, suggested range, But this right commercial $X -- a be an million that, it. million had -- track I it September, For year, had going means being we're on right this I million, it year, in $X mostly right we're $XX and million we we're which we million

on right $XX all necessarily start to to be It's some I on not of it, as actually think there. we're we're deliver able that. we going things embarking million [ going and these to executing be ], but

low maybe I and the rest million you $XX million, on you $X be So, would year this guess, 'XX? the thought -- think end, and

math. the That's Yes.

-- long think the I the And no if we've that's better. was long-term that as Just drive there's continued to opportunity. in reason that still business, not harder really true, not

the on just cost side? that's And it. Got

$XX Well, of opportunity. commercial with mostly million $XX to efficiencies, things types some the is million cost and productivity, those

even That's that things I I'm we what on morning, the this is growth suggesting think are we've that. but been that, commercial that have just not top the synergies just mentioned of pretty opportunities with some pretty On Paul that conservative these even is that opportunity exciting. more. on continued initiatives of Carlstar, are growth

that sourcing has If on I smaller Carlstar where planning correctly, China. a in Got you're tires? Is remember facility the it.

Yes.

drive in to plant. continue that the We efficiencies

business. entire across opportunities have the We

call We flexibility. some starting have some it, produced cross-pollination previously there build of we see a tires starting here. We're production to lot the, perspective, that from may already have to

know Got guidance. talked I it. And about you've fourth quarter the

quarter. what I tax CapEx capital about You number. gave And might working fourth a us said missed and have for the you

it's good driver in direction far that. in continue cash I as one as book QX. a we capital, but general past, of interesting profitability, be levels the level that QX. a seen the probably low the as tax given real we bit will in an it's to working our kind rate, we've is And elevated little number. very have of that think CapEx in for Yes. But challenging to same number it's flow seen being hard about And on, going perspective. pragmatic to -- -- from a a We're put tax lower that be a for

what say as range the just in year-to-date. Let's it's same we've seen

that. appreciate I it. Got

challenges to in lastly, to we -- looking a real lot quick of -- exposures then, before these to -- those faced reduce And and rates better on, to our see we I at number expect no, 'XX of a try that initiatives get move are just some of initiatives in 'XX.

It demand-driven. And we're Is that demand? the know the change prices, we're offshore at for? that focused Supply doesn't Is then, mostly seems Ag look I offshore is from that much. it to of Got terms just tough really side -- on looking as this to it's forecast. in and it. what way like demand

prices, Crop mean? you

Yes.

Yes.

thing for other good of crops years been the relatively is, The around number the a row. world have a in

the little year, little is is the repeat So, maybe the have just at But impacted good, of very the of crop, U.S., a in belt. part disruption of which repeated been the generally of to look size crops northern kind speaking, supply, the you recent a farm crops. think, I being good of When by bit years years. this

has think I -- And been you impact been have able so, there, crops storage. supply where into to have be good, have some grain put do the you the

Far drivers a change the And you're the Brazil to things bigger you. right, role in with U.S. with of the so, exporting probably overnight, to playing with be honest East but demand, shifted exports, than those can grains to, used

farm then, for not So, are One, in to equations diets long the demand to grains. to things. I too also, government to That's to pull -- out the think protein consumption the going but got over today, going future. continue is But work couple important on run people's what's over the a for you of that those assume of just because be got has to sector. aware through going

direction basically here, go one is the it blowing. let the winds you're just wind importing can't -- what exporting You the of there. And day,

food within over your long sources that's balance to run, control itself I out. going government think your that's of to -- got the And society. structure your You

-- a today And go say, just eat to in or going of are can people negative what I to people I Again, into protein so, sudden, seeing things consumption, again, going should to the long I think so all are that don't future. future. think in -- are better, we're for continue it's the extrapolated a be direction well

society. regardless their in for are satisfied governments run make having sure a production sources to on going making food think their of long I to they're the the the care and run relation peaceful decision right taking short that of

think, will something of think there long declining whatever year That going you it's not continue. reason out may it catalysts have be. to happen, prices. can constantly rates, whether run, improve is There's I the So, over that I after the won't again, interest farm that but -- politics, just for are year prices

currently We further have no questions.

So back hand I'd to to any Reitz remarks. Mr. closing for like

Yes. Certainly, a Well, conclude to want today. call Relations few we thank you, on, everybody, get talking opportunity enjoy the going things joining front. we have the I for on with there Investor the by and of all about you. to do meet out

got December has couple X. couple Northland event and X. December an that virtual on we've to are And on attending on we'll Oppenheimer Capital be be a that XX as well. going November then, good next of XX; Noble events conferences XX really ones: over the November Conference Part Baird Finance attending Three event Southwest XX; have on on We'll at of We the some November the their months. Advisors on be Conference, Leveraged BofA Conference we'll be industrial the December

wanted some to just opportunities I you. and there with and interact highlight Thank for today's to forward you, again, attendance and So, your that to us all of look call. out doing appreciate get on

you. Thank

joining. we As everyone today's for thank conclude we call,

disconnect now lines. your may You