Twin Disc announced a decline in sales but a slight increase in profits for its fiscal 2014 first quarter, reporting that sales to customers serving the global megayacht market remained at historical lows in the quarter.
Demand remained steady for equipment used in the industrial, airport rescue and firefighting markets, the company announced.
Sales dropped from $68.8 million in the first quarter of fiscal 2013 to $66.4 million for the quarter that ended Sept. 27 this year.
Net earnings for the fiscal 2014 first quarter were $1.28 million, or 11 cents a diluted share, compared with $1.23 million, also 11 cents a share, in the quarter a year earlier.
“We continue to see strong demand from our global commercial marine customers in the international oil and gas market, which is somewhat offset by continuing weak activity from European markets and global megayacht customers,” chairman and CEO Michael Batten said in a conference call with investors.
Batten, 73, also discussed this being his last call as CEO because he is stepping down, effective Nov. 1, and retiring Dec. 31. He will continue to serve as non-executive chairman of the company’s board. He has been employed at Twin Disc for 43 years.
John Batten, 47, was named president and chief operating officer of the company.