Twin Disc reports 1Q results

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Twin Disc Inc. said today that it grew its fiscal first-quarter sales by 25.8 percent, to $45.1 million, compared with $38.8 million in the comparable quarter last year.

The growth was attributable to increased demand for transmission systems from North American pressure-pumping customers and higher sales of aftermarket components, the company said.

The company said it earned $3.4 million, or 29 cents a diluted share, for the quarter that ended Sept. 29, compared with a loss of $2.7 million, or 24 cents a share, in the year-earlier quarter.

Although there are positive signs in the European and North American marine markets and the global patrol craft market, the Asian commercial marine market remains depressed, Twin Disc said.

"Positive momentum from new and existing North American pressure-pumping customers accelerated in the fiscal 2018 first quarter, helping drive significant year-over-year improvements in sales, profitability, and backlog," said Twin Disc president and CEO John Batten in a statement.

“As the year progresses, we will remain committed to programs that increase operating efficiency by further reducing costs, investing in new production capabilities and improving the effectiveness of our supply chain," he added.

The first-quarter gross margin was 30.8 percent, compared with 25.6 percent in the same period last year. The company said a 520-basis point increase in gross profit percent for the first quarter was primarily attributable to higher volumes, a more profitable mix of revenue, improved operating efficiencies and a global reduction in fixed manufacturing costs.

First-quarter marketing, engineering and administrative expenses increased $1.2 million, to $13.7 million, from $12.5 million in the quarter last year. The company said the 9.6 percent increase in ME&A expenses in the quarter was primarily attributable to increased global bonus expense, stock compensation expense and additional salary expense to support volume growth.

ME&A expenses fell to 30.3 percent for the quarter, compared with 34.8 percent in the quarter last year.