Racine-based Twin Disc Inc. today reported a net loss of $4.3 million, or 39 cents per share, in the first quarter of its 2016 fiscal year.
By comparison, the company had net income of $4 million in the first quarter of fiscal 2015.
The company’s sales also plunged in the first quarter of fiscal 2016, its $37.4 million in net sales for the quarter were down 42.3 percent from first quarter fiscal 2015 net sales of $64.8 million.
Twin Disc manufactures marine and heavy-duty off-highway power transmission equipment. The company said the decline of its sale is the result of reduced demand for its oil and gas related products in both North America and Asia driven by the global decline in oil and natural gas prices, along with softening demand in Asia for the company’s commercial marine products.
“Sustained lower oil and gas prices have severely impacted demand for our oil and gas pressure-pumping transmission systems,” said president and chief executive officer John Batten. “We expect difficult market conditions within the oil and gas, and pleasure craft marine markets to continue throughout the year and we are adjusting our business to meet these expectations. We will also continue to evaluate our global manufacturing capacity for reorganization opportunities in light of current and forecasted market demand.”