Twin Disc sales rose 23% in second quarter
02 February 2022
Twin Disc, Inc., the Wisconsin-based manufacturer of power transmission technology for off-highway, industrial and marine applications, announced that sales in for its fiscal second quarter that ended Dec. 31 were up 23% from the previous year.
Sales for the fiscal 2022 second quarter were $59.9 million, compared to $48.6 million for the same period last year. Year-to-date sales increased 13.6% to $107.7 million, compared to $94.7 million for the fiscal 2021 first half.
The increase in net sales was primarily due to improving demand within the company’s global oil and gas, industrial and marine markets compared to the same period last fiscal year. The positive impact of improving market conditions was partially offset by significant global supply chain challenges, which the company said limited sales growth in the quarter.
“Demand strengthened across many of our global markets during the fiscal 2022 second quarter, and we believe recent trends indicate sustained sales growth will continue this fiscal year,” said John H. Batten, president and chief executive officer. “We were not immune from unprecedented global supply chain challenges and higher raw material costs, which impacted second quarter shipments and gross margin. We expect gross margin and overall profitability will improve throughout the remainder of fiscal 2022, as we proactively manage expenses and prudently increase selling prices to offset tight raw material supply conditions.”
“Our six-month backlog at December 31, 2021, was $98.9 million, compared to $86.1 million at September 24, 2021, and $70.3 million at June 30, 2021. Strong orders and demand trends across many of our global markets drove a 15% increase in our six-month backlog over the past three months to the highest level since August 2019. We are also experiencing increased aftermarket sales to North America pressure pumping customers.
“We are optimistic that recent aftermarket orders, combined with higher oil and gas prices will support a growing investment cycle over the coming quarters for new pressure pumping rigs in North America. In addition, with a robust inventory position of finished pressure pumping transmission systems, we believe we are well positioned to capitalize on expected improvements in the oil and gas industry. As a result, we continue to believe fiscal 2022 will be a good year of profitable growth for Twin Disc.”
Gross profit percent for the fiscal 2022 second quarter was 22.5%, compared to 18.3% for the same period last year. Year-to-date, gross margin was 25.0% compared to 19.6% for the fiscal 2021 first half.