PHOTO COURTESY TWIN DISCTwin Disc Inc. swung to a profit in its fiscal fourth quarter, propelled by higher revenue, price increases and widening profit margins.
Demand improved in its marine markets, the Racine, Wis.-based producer of power transmission equipment said today in an earnings press release.
Net income in the quarter ended June 30 was $7.87 million, compared with a loss of $21.5 million in the fiscal fourth quarter of 2021. Net sales jumped to $76 million in the recent quarter, from $66.2 million in the year-earlier period. Gross profit margin widened by 410 basis points to 31.8 percent.
“The positive momentum during the fourth quarter was especially strong, as we continued to successfully navigate challenging raw material, component and supply chain conditions,” Twin Disc president and CEO, John H. Batten, said in the press release. “I am also pleased with the significant improvement we experienced in profitability as a result of the successful pricing initiatives we put in place last quarter [and] the benefits of our strategies to improve manufacturing efficiencies, including our recently opened Lufkin, Texas, production facility.”
The CEO also highlighted the launch of a hybrid marine product in tandem with Hinckley Yachts.
“An important component of our long-term growth strategy is to become a leading supplier of hybrid power control systems for industrial and marine applications,” Batten said. “We recently reached an important milestone with the launch and commercialization of Twin Disc’s first marine based hybrid power control system through a collaboration with Hinckley Yachts. Through our partnership, we helped develop Hinckley Yachts’ SilentJet hybrid technology, and we are excited to be part of Hinckley Yachts’ cutting-edge naval architecture.”
