Twin Disc today reported sales of $73.7 million for its fourth fiscal quarter, up 37.7 percent over the same period a year ago. Net income was $5.9 million, compared to $1.2 million last year. Income for the quarter was $0.63 per share, beating analysts’ consensus estimates of $0.48 per share. This compares to earnings of $0.10 per share a year ago.
The company said in a statement that it has seen an increase in sales of its transmissions systems from North American fracking customers, and global demand continues to improve year over year for its marine business.
Full-year sales were $240.7 million, compared to $168.2 million for the prior fiscal year.
CEO John H. Batten said investments made in global manufacturing, a favorable sales mix, controlled expenses and leveraged fixed costs contributed to the gain in sales and profits.
“We are extremely excited with the acquisition of Veth Propulsion, which closed in early July,” Batten said. “We anticipate this will be accretive to sales and cash earnings in the fiscal 2019 first half. The strategic acquisition expands Twin Disc’s position in the global marine industry at a time when demand is accelerating, while diversifying our markets, geographies and products. Veth Propulsion enhances our future outlook, and we expect fiscal 2019 to be another strong year.”
A 30.2 percent increase in ME&A expenses in the quarter was primarily due to transaction costs from the Veth acquisition. “Throughout fiscal 2019, we will focus on successfully integrating the Veth Propulsion acquisition and capitalizing on compelling opportunities underway in many of our global markets,” Batten said.