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Twin Disc, Inc. (NASDAQ: TWIN) today reported financial results for the fiscal 2013 fourth quarter ended June 30, 2013.
Sales for the fiscal 2013 fourth quarter were $75,931,000, down from $96,109,000 for the same period last year. For fiscal 2013, sales were $285,282,000, compared to the record $355,870,000 for fiscal 2012. The anticipated decrease in sales was primarily the result of lower demand from customers in the pressure pumping sector of the North American oil and gas market and softness in sales to European customers. Offsetting weakness in these markets was higher demand from customers in the North American and Asian commercial marine markets. Sales to customers serving the global mega yacht market remained at historic lows throughout the fiscal year, while demand remained steady for equipment used in the airport rescue and fire fighting (ARFF), and military markets.
Gross margin for the fiscal 2013 fourth quarter was 27.2 percent, compared to 29.4 percent in the fiscal 2012 fourth quarter and 25.9 percent in the fiscal 2013 third quarter. The anticipated year-over-year decline in the fiscal 2013 fourth quarter gross margin was the result of lower sales volumes and a less profitable mix of business. For fiscal 2013, gross margin was 28.1 percent, compared to 34.2 percent for fiscal 2012.
For the fiscal 2013 fourth quarter, marketing, engineering and administrative (ME&A) expenses, as a percentage of sales, were 22.5 percent, compared to 20.1 percent for the fiscal 2012 fourth quarter. ME&A expenses decreased $1,940,000 versus the fiscal 2012 fourth quarter. The table below summarizes significant changes in certain ME&A expenses for the quarter:
Three Months Ended
June 30, 2013
June 30, 2012
Foreign Exchange Translation, Net
All Other, Net
The year-over-year net remaining decrease in ME&A expenses of $1,183,000 for the quarter primarily relates to efforts to control global ME&A expenses in light of the current softness in demand experienced in certain of the Company’s markets.