Twin Disc’s net earnings increased 207 percent for fiscal year 2015 to $11.17 million on relatively flat sales, which dropped in the fourth quarter to $67.33 million, compared to $73.56 million the year prior.
For fiscal 2015, the company reported that sales were $265.79 million, compared to $263.909 million for fiscal 2014.
The decline in fourth quarter sales was due to lower shipments of land-based transmission systems for the North American oil and gas market, as well as weaker demand in Asia for commercial marine and oil-field transmissions.
Currency translations also had an unfavorable impact on sales totaling $4.043 million and $8.898 million for the fiscal 2015 fourth quarter and full year, respectively. Adjusting for constant currency, fiscal 2015 fourth-quarter sales declined 3 percent, while full-year sales increased 4.1 percent, compared to the corresponding periods last fiscal year.
"Trends in our markets were strong for most of the year, but during the second half we began facing an increasing number of headwinds, such as volatile foreign exchange rates, challenging end markets and the impact of global oil prices,” president and CEO John Batten said in a statement.
“For the year, we were able to achieve earnings growth of over 200 percent on less than a 1 percent improvement in annual sales, as a more profitable mix of sales favorably impacted margins and we were able to leverage marketing, engineering and administrative expenses,” Batten said. “We quickly responded and made the necessary adjustments to our business as a result of sustained lower oil prices and slower economic growth in several of our regions.”