Twin Disc Inc. today reported lower sales of $64.8 million in its fiscal 2015 first quarter, compared with $66.4 million a year earlier, attributing the decline to softening demand in the company’s Asian markets for commercial marine and oil and gas products.
Wisconsin-based Twin Disc said the decline was partially offset by increased shipments to its North American pressure-pumping customers. The company designs, makes and sells marine and heavy-duty off-highway power transmission equipment.
Net earnings for the quarter that ended Sept. 26 rose to $4 million, or 36 cents a diluted share, from $1.3 million, or 11 cents a share, in the quarter last year.
Gross margin for the quarter was 34.5 percent, compared with 31.1 percent last year. The increase in gross margin was the result of a more profitable mix of business, primarily driven by higher shipments of pressure-pumping transmissions to North American customers, the company said.
“While quarterly sales declined 2.4 percent, we experienced an 8.3 percent improvement in gross profit dollars as a result of higher oil and gas transmission systems to customers in North America,”president and CEO John Batten said in a statement.
“We are cautiously optimistic demand from the North American oil and gas market will improve throughout the year, but the timing of orders may vary from quarter to quarter."