Business
Twin Disc, Inc. Announces Fiscal 2020 Second Quarter Financial Results
• Second quarter impacted primarily by decline in oil and gas sales• Strategies to enhance efficiencies benefiting sequential gross profit• Management expects
About this update from Twin Disc, Incorporated
[{"type":"text","content":"• Second quarter impacted primarily by decline in oil and gas sales• Strategies to enhance efficiencies benefiting sequential gross profit• Management expects improving demand across core markets in the second half of fiscal 2020• Six-month backlog remains stable at $94.7 million\n RACINE, Wis., Jan. 31, 2020 (GLOBE NEWSWIRE) -- Twin Disc, Inc. (NASDAQ: TWIN), today reported financial results for the fiscal 2020 second quarter and first half ended December 27, 2019. Commenting on the results, John H. Batten, Chief Executive Officer, said: “Gross profit has increased over the past two quarters reflecting the benefits of new manufacturing capabilities, technologies, and processes, and the investments we are making throughout our business to expand profitability. Our new Texas manufacturing facility is expected to begin production within the next nine months, which will further expand our production capabilities and capacity and streamline our supply chain. I am encouraged by the progress we are making to improve our cost structure, which will have a favorable impact on profitability in future quarters and as demand increases.” Mr. Batten continued: “Our six-month backlog at December 27, 2019, was $94.7 million, compared to $99.6 million at June 30, 2019, and $137.8 million at December 28, 2018. We are starting to see early indications of improving demand trends in several of our markets. Specifically, we have received multiple orders from Asian fracking customers for our recently-released 7600-transmission system and we expect shipments of oil and gas transmission systems will be higher in the third quarter, compared to the fiscal 2020 first and second quarters. In addition, Veth is starting to expand its customer base in North America and in Asia, which we believe will contribute to improving marine trends in the coming quarters. We have developed a compelling strategy to adjust our business for fiscal 2020’s challenges, and we believe Twin Disc will emerge well positioned for sustainable sales growth and meaningful improvements in profitability in fiscal 2021 and beyond.” Sales for the fiscal 2020 second quarter were $59.5 million, compared to $78.1 million for the same period last year. The 23.8% decrease in fiscal 2020 second quarter net sales was primarily due to continued softness across the Company’s industrial, marine, and...