Lower demand from customers in the pressure pumping sector of the North American oil and gas industries put a dent in the second quarter profits for Racine-based Twin Disc Inc.
The company today reported net earnings of $3.42 million, or 29 cents diluted earnings per share, for the fiscal second quarter, down 41.5 percent from net earnings of $5.85 million, or 50 cents diluted earnings per share, for the 2011 fiscal second quarter.
Net sales for the quarter were down 12.8 percent to $72.3 million.
“As we stated last quarter, our fiscal 2013 results will be challenged by a decline in market activity in North America for our pressure pumping transmissions,” said Michael Batten, chairman and chief executive officer of Twin Disc. “Despite the lack of demand from this market, we were able to keep second quarter margins above 30 percent and maintain our overall profitability. This is a testament to our end market and geographic diversity and flexible manufacturing operations.”
Twin Disc also said that its sales to customers serving the global yacht market “remained at historical lows,” but the company had higher demand from customers in the North American and Asian commercial marine markets.
Twin Disc manufactures marine and heavy-duty off-highway power transmission equipment.