Twin Disc Inc. said Tuesday that it saw sales rise 15 percent and earnings improve significantly in its second quarter, citing strength in marine transmissions and aftermarket sales.
Sales for the quarter that ended Dec. 26 were $72.7 million, compared with $63.2 million in the same period last year.
Net earnings for the quarter were $3.75 million, or 33 cents a diluted share, compared with $518,000, or 5 cents a share, for the quarter a year earlier.
Sales for the first half of the fiscal year were $137.5 million, compared with $129.6 million in the same period last year. Net earnings for the first half were $7.8 million, or 69 cents a diluted share, compared with $1.8 million, or 16 cents a share, in the prior fiscal year.
The company said the sales increase was primarily attributable to higher shipments at its North American manufacturing and distribution operations across most product markets, only partially offset by moderating demand in the company's Asian markets for commercial marine and oil and gas products.
Twin Disc said demand from customers in Europe remained weak and overall demand in North America remains stable, influenced by the company's commercial marine, industrial products, and oil and gas markets.
In the second quarter of the current year, sales to North American customers were about 53 percent of total consolidated net sales, compared with 45 percent for all of fiscal 2014.
"We experienced a stronger-than-expected second quarter, driven primarily by higher sales to and increased service work performed for North American pressure-pumping customers,” Twin Disc president and CEO John Batten said in a statement.
“Also helping sales in the quarter were higher demand for marine transmissions and aftermarket activity, which were partially offset by the impact of the strengthening U.S. dollar on foreign currency translation,” Batten said. “We remain well positioned to compete globally and continue to focus on effectively managing our business through various market cycles.”
Gross second-quarter margin was 30.4 percent, compared with 29.3 percent in the quarter a year earlier.
Gross profit for the quarter was favorably affected by higher sales volume, driven by increased shipments to the company's North American manufacturing and distribution customers across most product markets, and increased service and parts sales