Fourth-quarter sales declined at Twin Disc, but the company said today that profits were higher than in the quarter a year earlier.
The Wisconsin-based company said it earned $2.3 million, or 21 cents a diluted share, for the quarter that ended June 30, compared with $47,000, or zero cents a share, for the quarter last year.
Sales for the quarter totaled $73.6 million, compared with $75.9 million for the same period last year. The company said sales were up 21.2 percent from this year’s third quarter.
For the full fiscal year, sales were $263.9 million, compared with $285.3 million the previous year. The company said the decrease was primarily a result of lower commercial marine transmission sales after a record year in fiscal 2013, softness in the global industrial product markets and continued weakness in the global megayacht market.
Profits for all of fiscal 2014 totaled $3.6 million, or 32 cents a diluted share, compared with $3.9 million, or 34 cents a share, the previous year.
"Fiscal 2014 ended with encouraging momentum in the North American oil and gas market,” Twin Disc president and CEO John H. Batten said in a statement. “We saw significant improvements in shipments and orders in the fourth quarter for our 8500 and 7500 series oil and gas transmission systems. We anticipate further improvements in the North American pressure pumping market to occur throughout fiscal 2015, but at a gradual pace versus the rapid expansion we experienced in fiscal 2011. Our commercial marine markets remain strong due to continued demand for our marine transmission systems in the U.S. Gulf Coast and throughout Asia.”
"We ended fiscal 2014 with one of the strongest capital positions in our history,” said Christopher J. Eperjesy, the company’s vice president of finance, CFO and treasurer. “Supplementing our strong balance sheet, we finalized a new $60,000,000 revolver and entered into a $50,000,000 senior note shelf facility during the fourth quarter. The company's strong balance sheet and access to capital provides significant financial flexibility to support our long-term growth initiatives, including potential acquisitions.”
Twin Disc designs, manufactures and sells marine and heavy-duty off-highway power transmission equipment. Products offered include marine transmissions, surface drives, propellers and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches and control systems.