RACINE, Wisc. — Sales for Twin Disc Inc.’s fiscal 2010 second quarter, which ended Dec. 25, were $55,186,000 — a sharp drop from the near record level of $81,598,000 for 2009’s second quarter, the company reported in a statement.
Year-to-date, sales were $102,243,000 compared to $154,270,000 for the fiscal 2009 first half. The company reported that sales continued to be affected by the global recession, specifically from customers in the mega yacht and industrial markets. This weakness was partially offset by continued demand from the airport, rescue and fire fighting market and stable demand from land- and marine-based military, and Asian-Pacific commercial marine markets.
“The second quarter last fiscal year was historically strong and we believe the company is positioned to achieve these strong financial results again,” CEO Michael E. Batten said in a statement. “We will exit the global recession a stronger and more competitive company, as we leverage our strengthening financial position and superior brands. We are working hard to extend our leading positions in certain key markets by supporting our existing products and developing new products, such as our new joystick control system that will begin to be rolled out at boat shows in late spring. Furthermore, we are making good progress in the development of our new 7500 series transmission and we are on track to begin delivering test units to our oil and gas customers this summer.”
Gross margin, as a percentage of fiscal 2010 second-quarter sales, was 26.8 percent, compared to 28.1 percent in last year’s comparable period and 20.7 percent in the fiscal 2010 first quarter.
Twin Disc recorded a net loss for the fiscal 2010 second quarter of $490,000, or $0.04 per share, compared to net income of $3,433,000, or $0.31 per share, for the fiscal 2009 second quarter and a net loss of $2,404,000, or $0.22 per share for the fiscal 2010 first quarter. Year-to-date, it reported a net loss of $2,894,000, or $0.26 per share, compared to net income of $5,898,000, or $0.52 per diluted share for the fiscal 2009 first half.
Earnings before interest, taxes, depreciation and amortization (EBITDA) were $2,270,000 for the fiscal 2010 second quarter, compared to $8,426,000 for the fiscal 2009 second quarter and a negative EBITDA of $808,000 for the fiscal 2010 first quarter. For the fiscal 2010 first half, EBITDA was $1,462,000, compared to $15,240,000 for the fiscal 2009 comparable period.
To read the company’s complete release, click here.