Twin Disc, Inc. Announces Fiscal 2017 First Quarter Financial Results

  • Gross Profit Percent Improves 370 Basis Points versus Q1 FY16 on Lower Sales
  • Balance Sheet Remains Strong with $6,383,000 in Net Cash at September 30, 2016
  • Ongoing Initiatives to Further Reduce Cost Structure
  • Global Oil and Gas and Asia Commercial Marine Markets Remain Challenging

RACINE, Wis., Nov. 01, 2016 (GLOBE NEWSWIRE) -- Twin Disc, Inc. (NASDAQ:TWIN), today reported financial results for the fiscal 2017 first quarter ended September 30, 2016. 

Sales for the fiscal 2017 first quarter were $35,835,000, compared to $37,373,000 for the same period last year. The sales decline for the fiscal 2017 first quarter is primarily the result of lower demand in Asia for the Company's commercial marine products. Demand for the Company's oil and gas related products remained depressed through the first fiscal quarter, in line with the global decline in oil and natural gas production. 

Commenting on the results, John H. Batten, President and Chief Executive Officer, said: "Over the past six quarters we have taken a number of meaningful actions to align our cost structure for a period of prolonged weakness across many of our end markets. These actions have been difficult and impact many aspects of our business and communities, but are necessary for Twin Disc to weather this challenging cycle. Our proactive approach helped us improve our gross profit percent significantly during the first quarter despite lower volumes. We continue to pursue opportunities to improve efficiencies and reduce costs, with additional workforce reductions recently completed in the second fiscal quarter. It is important to note that these ongoing cost reduction activities do not sacrifice quality or our commitment to our customers, and are solely focused on improving efficiencies and realigning our operations for lower volumes.  Based on our conscious decisions to hold strategic inventory, invest in R&D, and maintain a high level of customer service, we expect to gain share in many of our markets as they eventually recover."

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