Twin Disc reports record second quarter
RACINE, Wis. – Sales, net earnings and diluted earnings per share for the fiscal 2007 second quarter, ended Dec. 31, represented the best quarter in the history of Twin Disc, Inc., the company reported in a release yesterday.
Sales for the quarter improved 30.1 percent to $74,239,000, from $57,051,000 in the same period a year ago. Year-to-date, sales increased 31.3 percent to $140,013,000 from $106,628,000 in the fiscal 2006 first half.
The recent BCS Group acquisition contributed $8,139,000 to net sales in the fiscal 2007 second quarter and $14,697,000 to year-to-date sales. The company said its sales continue to benefit from strong demand across all the markets it serves, especially from its oil and military customers.
Gross profit, as a percentage of 2007 second-quarter sales, increased 4.8 percentage points to 32.9 percent from 28.1 percent in the fiscal 2006 second-quarter and gross profit, as a percentage of year-to-date sales, increased 3.4 percentage points to 31.9 percent from 28.5 percent in the same period last fiscal year.
The company said its profitability continued to improve from the implementation of cost reduction programs, manufacturing efficiencies, a better product mix and selective price increases.
Net earnings for the second quarter increased 127.8 percent, or $3,181,000 to $5,670,000, or $0.96 per diluted share, compared with $2,489,000, or $0.42 per diluted share, for the fiscal 2006 second quarter. Year-to-date, earnings increased 87.8 percent to $9,342,000, or $1.58 per diluted share from $4,974,000, or $0.85 per diluted share.
“We are encouraged by our financial results for the first half of the year,” Michael E. Batten, Twin Disc’s chairman, president and CEO said. “Earnings for both the second quarter and first six months were the highest in the company’s history. We are optimistic that fiscal 2007 will be another record year.
“Our six-month backlog now stands at $112,426,000 (which includes backlog of $7,547,000 from BCS). This compares to the six-month backlog (excluding backlog from BCS) of $91,598,000 at fiscal 2006 year end and $87,000,000 at Dec. 31, 2005. We are excited about our opportunities as we go into the second half of the fiscal year.”
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