Twin Disc today reported sales of US$53.6m for its fourth fiscal quarter, up 25.7% compared to the same period a year ago. Net income was US$1.16m compared to a net loss of US$5.5m a year ago.
A company statement said the higher Q4 sales were due to improved demand for its 8500 series transmission systems from North American pressure pumping customers, and higher sales of aftermarket components.
“We are well-positioned to benefit from anticipated improvements in oil and gas demand,” said John Batten, president and CEO, in a statement. “We have also started to see positive signs in our global patrol boat and North American inland marine markets, but remain cautious within our overall commercial marine, pleasure craft, airport rescue and firefighting, military, and industrial markets.”
Batten said that Twin Disc’s cost restructuring efforts over the past two years showed during this last quarter. "We are seeing the benefits from the initiatives to improve our cost structure and create a more capital-efficient business,” he said. “The continued and proactive restructuring we have accomplished across our global footprint has provided significant cost savings and flexibility to withstand a lengthy downturn in many of our markets." Batten added that he was “encouraged” by positive signs in the oil and gas markets.
Twin Disc’s six-month backlog at June 30, 2017 was $46,437,000 compared to $35,709,000 at June 30, 2016. “As sustained demand improves, we are well positioned for profitable growth,” said Batten.