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FOR RELEASE: IMMEDIATE FOR INFORMATION CONTACT: J. O. PARRISH
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EXT. 4311
TWIN DISC, INCORPORATED
1328 RACINE STREET
RACINE, WI 53403
414-638-4000
TWIN DISC REPORTS THIRD FISCAL QUARTER RESULTS
RACINE, WI, April 17, 1998 - Twin Disc, Incorporated reported net
earnings for the third fiscal quarter ended March 31, 1998 rose 24% to
$2,384,000 compared with $1,916,000 reported a year ago. Basic earnings per
share increased 22% to $.84 per share compared with $.69 per share reported a
year ago. Net sales for the quarter were $49,029,000 compared with
$49,204,000 for the prior year.
For the nine months, net earnings were $5,856,000, or $2.07 per share,
compared with the $4,790,000, or $1.73 per share, reported a year ago. Net
sales through three quarters totaled $150,903,000, up 11% from the
$135,641,000 reported last year.
Commenting on the results, Michael E. Batten, chairman and chief
executive officer, said, "Earnings were higher on flat sales for the third
quarter as year-to-year profitability gains continued. Most of the
improvement was realized at our Belgian manufacturing operation with higher
sales volume and the strong U.S. dollar the primary reasons for the gains.
"Sales for the third quarter were adversely affected by the January
completion of a contract to supply powershift transmissions to a European
vehicle manufacturer. Also, the general weakening of most other currencies
against the U.S. dollar caused a reduction in the reported value of sales from
offshore operations.
"Shipments from our Belgian manufacturing subsidiary were higher due to
increased demand for pleasure craft marine transmissions, while domestic
shipments of the higher horsepower units for commercial marine applications
eased somewhat. Sales of most other products were at or slightly above the
levels of last year with market demand generally stable.
"The gross profit margin increase was driven by improvement in European
manufacturing margins related to the stronger dollar. There was some
improvement in sales and earnings of our domestic distribution companies, but
those offshore operations were adversely affected by the strengthening dollar
and the Asian economic crisis.
(more)
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"At the London International Boat Show in January, Twin Disc introduced
the MG-5075A marine transmission, a very compact, high capacity unit designed
for use with today's high-output diesel engines.
"The backlog of new orders to be shipped in the next six months now
stands at $65 million, down 6% from the beginning of the quarter and 17
percent below the backlog reported a year ago. Much of that decline is due to
the winding down of the truck transmission contract. Otherwise, near-term
demand has remained relatively stable. Shipping levels may moderate somewhat
during the final quarter but should be sufficient for us to meet our $200
million sales goal," Mr. Batten concluded.
Below is a summary of unaudited comparative results
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FINANCIAL STATEMENT
Three Months Ended Nine Months Ended
March 31, March 31,
1998 1997 1998 1997
Net sales $49,029 $49,204 $150,903 $135,641
Cost of goods sold 36,219 37,480 115,907 104,250
Gross profit 12,810 11,724 34,996 31,391
Marketing, engineering and
administrative expenses 8,246 7,819 24,473 22,553
Interest expense 376 443 1,135 1,418
Other (income) and expense, net 38 133 (571) (951)
Earnings before income tax 4,150 3,329 9,959 8,371
Income taxes 1,766 1,413 4,103 3,581
Net earnings $ 2,384 $ 1,916 $ 5,856 $ 4,790
Earnings per share data:
Basic earnings per share .84 .69 2.07 1.73
Diluted earnings per share .82 .68 2.03 1.71
Shares outstanding data:
Averages shares outstanding 2,842 2,783 2,829 2,780
Dilutive stock options 57 34 54 27
Fully diluted shares 2,899 2,817 2,883 2,807
Unaudited. Amounts in thousands except per share data.
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TWIN DISC DECLARES REGULAR QUARTERLY DIVIDEND
RACINE, WI, April 17, 1998 - The board of directors of Twin Disc,
Incorporated voted to pay a quarterly dividend of 19 cents per share payable
June 1, 1998 to shareholders of record on May 8, 1998.
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TWIN DISC BOARD OF DIRECTORS
ADOPTS RIGHTS AGREEMENT
RACINE, WI, April 17, 1998 - At its regular meeting today, the Twin Disc,
Incorporated board of directors approved the extension of the benefits
afforded by the company's existing shareholder rights plan by adopting a new
shareholder rights agreement.
The agreement replaces the shareholder rights currently scheduled to
expire June 30, 1998, with new rights scheduled to expire June 30, 2008. The
type of agreement is commonly termed a "poison pill" defense for hostile
takeovers. Shareholders may obtain a summary of the new agreement by
submitting a request to the company.
The action was not taken in response to any specific effort to acquire
control of the company and the board is not aware of any such effort.