Twin Disc today reported a drop in sales for its fiscal fourth quarter and the 2010 fiscal year, partially because of weakness in the company's megayacht market.
Sales for the quarter were $64.31 million, compared with $72.05 million for the fiscal 2009 fourth quarter. Sales for fiscal 2010, which ended June 30, were $227.5 million, compared with $295.6 million last fiscal year.
Gross profit, as a percentage of fiscal 2010 fourth-quarter sales, was 30.2 percent, compared with 26.7 percent in the fiscal 2009 fourth quarter and 27.1 percent in the fiscal 2010 third quarter.
"The continued quarterly improvement, both sequentially and year-over-year, in the company's gross margin is the result of restructuring activities the company initiated last fiscal year, increased sales volumes, compared to the third fiscal quarter and the continued improvement in the mix of business," Racine, Wis.-based Twin Disc said in a statement.
Fiscal 2010 gross profit, as a percentage of sales, was 26.6 percent, compared with 27.6 percent in fiscal 2009.
Net earnings for the fiscal 2010 fourth quarter were $2.04 million, or 18 cents a diluted share, compared with $2.75 million, or 25 cents a diluted share, for the fiscal 2009 fourth quarter.
For fiscal 2010, net earnings were $597,000, or 5 cents a diluted share, compared with $11.5 million, or $1.03 a diluted share, last fiscal year.
"We are pleased with many aspects of our fiscal 2010 fourth-quarter and full-year financial and operating results. Quarterly sales, margins, profitability and backlog all grew sequentially throughout our fiscal year," chairman and CEO Michael Batten said in a statement.
"Most of this improvement was the direct result of higher sales for our 8500 series transmission to oil and gas customers and we expect this increased level of activity to continue throughout the new fiscal year," he added. "The diversity of our end markets, geography and business mix has helped insulate our financial results from continued weakness in the pleasure craft market and weakness from customers in Europe."