A large corporation from the USA leaves Germany

The American group Titan Machinery, one of the largest distributors of agricultural and construction machinery operating in the EU, is leaving Germany due to poor results. Details are given by the publication Profit.Ro .

Titan entered the German market in 2018 and currently has a network of 9 dealerships, mainly for brands from the portfolio of the Italian-American manufacturer of agricultural machinery CNH Industrial. The group announced the sale of its German assets through two separate transactions, which are expected to be completed within the next three months.

"Our operations in Germany have encountered difficulties that have affected the profitability of our European operating segment, and these planned transactions allow us to exit the German market in a coordinated manner," said Brian Knutson, president and CEO of Titan Machinery.

Titan estimates pre-tax losses in the amount of 3 to 4 million US dollars from the sale of the German business. According to Knutson, the group will continue to focus on markets where it can "make the most effective use of its operational experience and service network."

Titan Machinery operates an international network of more than 65 dealerships located in Europe and Australia. In addition to Germany, the group is active in the European market in Romania, Austria, Bulgaria and Ukraine. The Group reported revenue of USD 546.4 million for the fiscal quarter ended July 31, which is 13.8% less than in the same period last year, amid a decline in demand for equipment by almost a quarter. Revenue in Europe increased by 44% to 98.1 million US dollars, mainly due to dealerships in Romania. According to the company, the financial incentives provided by the EU provoked "significant buying activity" in Romania in the second quarter.