Twin Disc reported net sales of $78.1 million for its second quarter, up 38.1 percent compared to the same period a year ago. The company said in a statement that the increase was primarily due to its acquisition of Veth Propulsion last year, higher demand for its 8500 series transmissions and improved activity in global marine markets.
Net income for the second quarter was $4.07 million, compared to a net loss of $4.11 million a year ago. EBITDA was $9.1 million.
“The fiscal 2019 second quarter reflects one of the best second quarters in Twin Disc’s history,” said president and CEO John H. Batten in the statement. “We benefited from strong demand across many of our global markets and the Veth Propulsion acquisition. Veth is benefitting from Twin Disc’s global distribution and service capabilities, which has helped expand Veth’s access to North American and Asian markets.”
The company said its six-month mix of marine sales has increased to 49 percent from 43 percent for the same period a year ago.
The statement said that Veth’s strong R&D capabilities in marine applications, such as hybrid controls, has accelerated Twin Disc’s product development. “I am extremely pleased with how the integration of Veth is progressing, and overall the acquisition remains in line with our expectations. We continue to be excited by the long-term potential this acquisition has for our business, customers and shareholders,” Batten said.
Twin Disc’s six-month backlog on Dec. 28, 2018, was $137.8 million, compared with $115 million on June 30, 2018, and $85 million on Dec. 29, 2017.
The company said it is opening a new facility in Lufkin, Texas, which it expects to be operational in the first quarter of 2020. “We are currently relocating our aftermarket operation to a separate facility in Wisconsin to create more manufacturing capacity and allow for a more efficient aftermarket operation,” Batten said.