Twin Disc Q3 sales, order backlogs climb
By Mike Brezonick29 April 2022
Twin Disc, Inc., the Wisconsin-based marine and off-highway transmission specialist, reported that sales for the fiscal 2022 third quarter that ended in March were $59.3 million, compared to $57.6 million for the same period last year. The company said the 2.9% increase in third quarter net sales was primarily due to improving demand within the company’s global oil and gas, industrial and marine markets.
Year-to-date sales increased 9.6% to $166.9 million, compared to $152.4 million for the fiscal 2021 nine-months, while gross profit for the third quarter was 29.8%, compared to 24.2% for the same period last year. Year-to-date, gross margin was 26.7% compared to 21.4% in 2021.
Twin Disc said the positive impact of improving market conditions was partially offset by global supply chain challenges, which continued to limit sales growth during both the fiscal 2022 third quarter and nine-months.
“I am pleased with the progress we made during the third quarter and the positive momentum underway across many aspects of our business and global markets,” said John H. Batten, president and chief executive officer. “Throughout the quarter, our teams worked with our suppliers and customers to navigate tight raw material supply conditions.”
Batten said the company’s six-month backlog at March 25, 2022, was $108.9 million, compared to $70.3 million at June 30, 2021, and $98.9 million at December 31, 2021. “The 10.1% sequential increase was due to strong orders and demand trends across many of our global markets,” Batten said. “Growth in our backlog also reflects shipping, logistics, and production delays, which impacted the timing of shipments during the third quarter.
“Aftermarket sales to North American pressure pumping customers remains strong, which we believe indicates a growing investment cycle over the coming quarters within the North American pressure pumping market. In addition, we are experiencing higher global demand for our pressure pumping transmission systems, most notably our 7600 series transmission systems for use in the Chinese oil and gas market.”