Racine-based Twin Disc Inc. recovered from a loss in the final quarter of its fiscal year.
The company recorded fourth-quarter net income of $1.2 million, or 10 cents per share, compared with a net loss of $5.5 million, 48 cents lost per share, in the fourth quarter of 2016.
Revenue was $53.6 million, up from $42.6 million in the year-ago quarter.
Operating income was $2.4 million, compared with a $9.8 million operating loss in the fourth quarter of 2016.
The company recorded $424,000 in restructuring charges in the quarter, up from $134,000 in the fourth quarter of 2016, related mainly to layoffs at “certain of the company’s domestic and foreign operations.” For the full year, restructuring charges totaled $1.8 million, up from $921,000, as it completed layoffs. The efforts are expected to generate about $2.4 million in annualized savings. The restructuring moves in 2016 are expected to produce $4.5 million in annualized savings.
Twin Disc began restructuring actions in late 2015, and continues to cut costs as it works to adjust to global headwinds in the oil and gas, global pleasure craft and commercial marine markets. Among the moves was the closure of its India plant this past spring.
“The continued and proactive restructuring we have accomplished across our global footprint over the past two years has provided significant cost savings and flexibility to withstand a lengthy downturn in many of our markets,” said John Batten, president and chief executive officer. “As evidenced by our 2017 fourth quarter results, Twin Disc’s adjusted cost structure has significantly improved margins and lowered our breakeven point. As sustained demand improves, we are well positioned for profitable growth.”
For the full year, Twin Disc reported a net loss of $6.1 million, or 56 cents lost per share, compared with a net loss of $13 million, or $1.17 lost per share, in 2016.
Full-year revenue was $168.2 million, up from $166.3 million last year.
Batten said Twin Disc expects the oil and gas market to improve, and more producers to invest in rebuilds and new equipment for the North American pressure pumping fleet.
“I am encouraged by improving oil and gas demand,” he said
Twin Disc manufactures marine and heavy-duty off-highway power transmission equipment, such as marine transmissions, boat propellers and industrial clutches.