Twin Disc reported on Monday double-digit fiscal 2018 fourth-quarter gains of 37.7% over the same quarter last year on sales of US$73.7m. Income for the quarter was 63 cents a share compared to 10 cents a share a year ago and out-performing analysts’ projections of 48 cents per share. Full-year sales totaled US$240.7m, compared to US$168.2m is fiscal 2017.
In a company statement, Twin Disc attributes the growth to increased sales to North American fracking customers and higher sales of aftermarket components. In addition, president and CEO John Batten said profitability increased as a result of global manufacturing investment and a favourable sales mix among other business efficiencies, adding that “gross profit percent during the fiscal 2018 fourth quarter was the second highest quarterly result in Twin Disc’s history.”
The numbers do not reflect Twin Disc’s July acquisition of Veth Propulsion, which are expected to add to sales and cash earnings in the first half of fiscal 2019.
“The strategic acquisition expands Twin Disc’s position in the global marine industry at a time when demand is accelerating, while diversifying our markets, geographies, and products. Veth Propulsion enhances our future outlook and we expect fiscal 2019 to be another strong year,” Batten said.