As is always the case, when one industry flounders (the financials), another industry flourishes (agricultural equipment).
A number of times in this column, I’ve written about a successful consolidator in the agricultural equipment business called Titan Machinery, Inc. (NASDAQ/TITN).
This company, founded in 1980, is headquartered in Fargo, North Dakota. It owns and operates one of the largest networks of full-service agricultural and construction equipment stores in North America.
Currently, Titan Machinery owns some 42 dealerships in North Dakota, South Dakota, Minnesota, and Iowa, selling the CaseIH, New Holland Agriculture, Case Construction, New Holland Construction, Kobelco and CNH Capital brands.
Recently, the company announced that its second-quarter revenues this year had grown to a substantial one hundred and thirty-five million dollars, up solidly from revenues of almost eighty-six million dollars generated in the second quarter last year. All three of Titan’s main business lines — equipment sales, parts and service — contributed to the sales growth.
Net income for the company’s fiscal second quarter was $3.3 million, as compared to net income of $1.5 million.
For the six months ended July 31, 2008, Titan’s total revenues grew to almost two hundred and eighty-eight million dollars, up substantially from revenues of close to one hundred and sixty-six million dollars generated in the comparable period the previous year.
Net income for the first six months of fiscal 2009 was $6.7 million, or $0.43 per diluted share, as compared to $2.2 million, or $0.34 per diluted share, in the same period last year.
Due to this solid growth, Titan raised its full-year outlook. Revenues are expected to be between five hundred and ninety million dollars and six hundred and thirty-five million dollars, up from previous guidance of between five hundred and seventy-five million dollars and six hundred and twenty-five million dollars. Total earnings per share guidance was also raised.
At a time when Wall Street is going crazy, it’s great to see a business flourishing on Main Street. Or should that be “Rural Street?”