What: Shares of giant tire supplier Titan International Inc (TWI 0.35%) plunged as much as 30% today after it reported third-quarter earnings.
So what: Revenue plunged 31% to $308.8 million in the quarter and adjusted net loss more than quadrupled to $31.5 million, or $0.59 per share. That fell well below the $357.3 million in revenue and $0.06 per-share loss analysts were expecting.
Now what: Low commodity prices in mining and agriculture have hit those sectors hard, and for a company like Titan that supplies those customers, there can be a huge impact on results. That showed itself in the third quarter, and there's really no telling how long the downturn will last.
The good news is that management signed a licensing deal with Goodyear that will allow the company to sell in over 100 countries around the world. That won't ease the woes that hurt the company last quarter, but it'll help increase leverage when there is a turnaround in end-market demand.
