Racine-based Twin Disc Inc. today reported a fiscal third quarter net loss of $1.8 million, or 16 cents lost per share, compared with a net loss of $963,000, or 9 cents lost per share in the same quarter of the previous fiscal year.
Twin Disc, which manufactures marine and heavy-duty off-highway power transmission equipment, reported an operating loss of $3.3 million, compared with an operating loss of $4.7 million in the third quarter of 2016.
Revenue totaled $45.1 million in the third quarter, up from $41.4 million in the same period a year ago. The company attributed the increase to higher demand for its 8500 series transmission systems from North American pressure pumping customers and higher aftermarket component sales.
Oil and gas trends continued to negatively impact Twin Disc. The global offshore market remained weak in the quarter.
“If our recent order trends continue, we feel confident that only offshore oil and gas face potential further negative headwinds in the coming quarters, and that we will see profitable quarters in the very near future,” said John Batten, president and chief executive officer.
“Significant orders for our 8500 series transmission systems received during the fiscal 2017 third quarter benefited third quarter sales, profitability and backlog,” Batten said. “Our proactive decision to maintain inventory of oil and gas transmission systems over the past several quarters allowed Twin Disc to quickly begin shipping 8500 series transmissions to customers in the third quarter. In addition, Twin Disc’s focus on efficiently delivering high-quality, high-horsepower transmissions systems to oil and gas customers is a significant competitive advantage and demonstrates Twin Disc’s leadership position in this compelling market. There continues to be a significant underinvestment in fracturing equipment, and we have experienced good demand for aftermarket components. As a result, we are carefully watching the oil and gas market and believe we are well positioned to capitalize on new equipment investments.”
