Business
Twin Disc, Inc. Announces Fiscal 2021 First Quarter Financial Results
Continued focus on driving efficiencies and optimizing operationsProduction at new Lufkin, TX manufacturing facility expected to begin in early calendar
About this update from Twin Disc, Incorporated
[{"type":"text","content":"Continued focus on driving efficiencies and optimizing operationsProduction at new Lufkin, TX manufacturing facility expected to begin in early calendar 2021Sales and profitability expected to improve through the fiscal yearSix-month backlog at September 25, 2020 was $69.4 million, a 4.2% increase from June 30, 2020 RACINE, Wis., Oct. 30, 2020 (GLOBE NEWSWIRE) -- Twin Disc, Inc. (NASDAQ: TWIN), today reported financial results for the fiscal 2021 first quarter ended September 25, 2020.\n Sales for the fiscal 2021 first quarter were $46.1 million, compared to $59.3 million for the same period last year. The 22.2% decrease in 2021 first quarter sales was primarily due to year-over-year softness in the Company’s oil and gas, industrial, and marine markets, and the continued impacts the COVID-19 crisis is having across Twin Disc’s global markets. Foreign currency exchange had a $1.5 million positive impact on fiscal 2021 first quarter sales. John H. Batten, Chief Executive Officer, commented: “Our six-month backlog at September 25, 2020, was $69.4 million, compared to $96.7 million at September 27, 2019, and $66.6 million at June 30, 2020. I am encouraged by the direction we are headed despite the near-term economic challenges and uncertainty the COVID-19 crisis has created. While first quarter sales at Veth Propulsion (our Dutch operation) were down year-over-year, we ended the quarter with strong order and backlog growth. Oil and gas demand continues to experience significant year-over-year declines due to the current pricing environment and the number of idled fracking rigs in North America. However, we believe much of the idled capacity has been recently brought back online or scrapped. As a result, we expect to benefit from improving oil and gas demand in the coming quarters as the North American fracking fleet is repaired and replaced. We are also well positioned to benefit from growing global demand for hybrid and electric technology within the industrial off-highway market as a result of our leading power control technologies, capabilities, and experience. We see increasing demand trends within this market, which we anticipate accelerating in the coming years.” “As you can see, we are successfully navigating the unprecedented effects the COVID-19 crisis has had across many of our global markets, while protecting the health a...