April 10, 2014 -¨Titan Machinery exceeded the full year 2014 adjusted guidance and has right sized itself to stay ahead of current market climates, position the company for future growth and better serve customers.
The changes made are strategic responses to industry-wide challenges: a potentially slowing agriculture economy and a slow recovery in the construction economy.
The right sizing includes the closing and consolidation of seven construction stores and one agriculture store. All closed stores are being consolidated to nearby Titan Machinery stores. As a result, customers of closed stores can continue their sales, parts, rental, and service support at their nearest Titan Machinery store.
Those closed construction stores are (and consolidated to):
- Clear Lake, Iowa (Des Moines, Iowa)
- Cheyenne, Wyoming (Windsor, Colorado)
- Flagstaff, Arizona (Phoenix, Arizona)
- Helena, Montana (Great Falls, Montana)
- Bozeman, Montana (Billings, Montana)
- Big Sky, Montana (Billings, Montana)
- Rosemount, Minnesota (Shakopee, Minnesota)
The Oskaloosa, Iowa agriculture store has been consolidated into the Pella, Iowa store.
Whenever possible, employees at the consolidated stores have been redirected into new positions. Impacted employees are being treated fairly with transition assistance. They have received an offer that includes a severance and benefits package, and the option to apply for re-hire at other Titan Machinery locations.
"Closing stores and letting people go is a very difficult and painful decision, considering the impact on hard-working employees and communities," said David Meyer, CEO. "We sincerely thank our departing employees for their dedicated service to our company."
"Like other successful companies, we have a responsibility to make tough decisions that support our customers' business needs, manage company expenses, match the changing business climate, operate efficiently, and position ourselves for long-term growth," said Meyer.
The changes across Titan Machinery focus on improving the performance of locations, developing a construction rental hub business model, and managing expenses and inventory.
A majority of the closed and consolidated stores are smaller sized construction businesses and Titan Machinery will continue to pursue opportunities for future agricultural acquisitions.
"I'm confident these difficult decisions are the right actions to bring focus to key business areas that will strengthen our ability to grow and remain competitive in the agriculture and construction marketplaces," said Meyer. "We are a financially strong company and are making sure we have the right company, going forward, for our customers."
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