Skip to main content

Twin Disc reports 3Q results

Twin Disc said today that fiscal third-quarter sales declined to $41.4 million from $60.9 million in the same period last year.

Twin Disc said today that fiscal third-quarter sales declined to $41.4 million from $60.9 million in the same period last year.

The Wisconsin-based company reported a loss for the quarter that ended March 25 of $963,000, or 9 cents a diluted share, compared with a profit of $2.95 million, or 26 cents a share, in the quarter a year earlier.

For the fiscal year to date, the company reported a loss of $7.6 million, or 68 cents a diluted share, compared with earnings of $10.7 million, or 95 cents a share, for the first nine months of the previous fiscal year.

For the nine-month period through March 25, sales were $123.6 million, compared with $198.5 million for the same period in the previous year.

The “significant decline” in fiscal 2016 sales was the result of reduced demand for the company's oil- and gas-related products in North America and Asia, driven by a global decline in oil and natural gas prices, the company said.

Twin Disc also said it saw softening demand in Asia for commercial marine products.

Twin Disc also said demand from customers in Europe remains weak, but overall demand in North America remains relatively stable for the company's commercial marine and non-oil and gas industrial products.

Currency has had an unfavorable effect on fiscal 2016 sales, compared with the prior year, totaling $1.03 million and $7.86 million for the third quarter and year to date, respectively, because of a strengthening of the U.S. dollar against the euro and Asian currencies.

The company’s loss before interest, taxes, depreciation and amortization was $2.7 million for this year’s third quarter, compared with earnings of $6.2 million for the prior year’s quarter.

For the fiscal 2016 nine-month period, EBITDA showed a loss of $8.5 million, compared with a gain of $23.9 million in the comparable period last year.

"We have significantly strengthened our balance sheet and capital structure over the years, achieving a debt-to-total-capital ratio of 8.3 percent as of March 25, 2016,” Twin Disc CFO Jeffrey Knutson said in a statement. “This has provided the company with substantial financial flexibility and confidence to weather this downturn in our markets.”

Related

BOB-CONFERENCE

MMTA Sets Date for Conference

The educational Business of Boating Conference will be held in Foxboro, Mass., with in-person and remote attendance options.

AKZONOBEL

AkzoNobel Nominates Board Member

Ben Noteboom is expected to be elected chair to succeed the retiring Nils Andersen.

MARINE-MARKETERS

Neptune Awards Adds Category

“Boat Show Marketing” will recognize promotional efforts for shows, and entries will be accepted until Dec. 18.

WOMEN-SAILING

Sailing Convention for Women Returns

Postponed during Covid, the event will include on-water training, networking opportunities and workshops.

Norm

MBIA Names Board Members

The Michigan Boating Industries Association elected four new directors and named the officers who will serve next year. Also, the 2023 schedule for “Ladies Let’s Go Fishing!” is taking shape.

CL.YACHTS

CL Yachts Expands Dealer Network

The Hong Kong-based builder added retail locations in Australia, Dubai, Singapore and Macau.

LEGEND.BOAT.FIX

Legend Boats Partners With Boat Fix

The Canadian builder will offer the telematics system, which provides tracking, monitoring and 24-7 service, on new models starting next year.

MARINEMAX

MarineMax Establishes Technology Division

The company’s Boatyard and Boatzon units will operate under the new entity, New Wave Innovations.

SUNTEX

Suntex Purchases New Jersey Facility

Green Cove Marina in Brick is the company’s latest acquisition on the Jersey Shore, joining Channel Club Marina and Key Harbor Marina.