Racine-based Twin Disc Inc. today reported fiscal second quarter net earnings of $518,000, or 5 cents per share, down from $3.3 million, or 29 cents per share, in the second quarter of 2013.
The company’s sales for the quarter ended Dec. 27 were $63.2 million, down from $72.3 million in the same period a year ago.
Twin Disc, which makes marine and heavy duty off-highway power transmission equipment, attributed the drop in sales to less business in both North America and Europe, partially offset by higher shipments to Asia.
While demand remained flat in the industrial, airport and rescue and fire fighting markets, the global mega yacht market continued to experience historic lows.
“Unfavorable trends in the North American pressure-pumping market continue to weigh on our financial results,” said John Batten, president and chief executive officer. “We anticipate this market will remain weak for the next several quarters as fracking operators have improved the efficiency of managing their fleets, which has delayed the product ordering cycle. To help insulate our business from product and geographic downturns, we have focused our efforts on improving our product and geographic diversity. Commercial marine and oil and gas sales to customers in Asia remain strong and we continue to set record sales for the region. We remain focused on business strategies that diversify sales, improve profitability, invest in our facilities and continue new product development, while conservatively managing our balance sheet.”
