Twin Disc falls on Q2 profit drop
Shares of Twin Disc Inc. (Nasdaq: TWIN) have rolled into negative territory on news the manufacturer of marine and off-highway power transmission equipment saw its fiscal fourth-quarter profit decline.
The net income for the three months ended June 30 was $5 million, or $0.83 per share, a drop of 14% compared with a net income of $5.66 million, or $0.95 per share, during the same period of 2006, the Racine, Wis.-based company reported before the opening bell.
Analyst estimates were not available.
Twin Disc said that the profit decline was primarily attributed to an after-tax restructuring charge at its Belgian operation, which shaved off $1.75 million, or $0.29 per share.
On the other hand, sales improved. Revenue increased 25.2% to $90.78 million, from $72.53 million a year earlier.
The rise is mostly due to the acquisition of BCS Group, an Italian manufacturer and distributor of products and accessories for the marine industry. That purchase, announced in May 2006, contributed a total of $11.11 million to quarterly net sales.
Twin Disc, which was included in the Russell 2000 index during the latest reconstitution, paid $22.70 million in cash for the BCS Group.
For the fiscal year, Twin Disc had earnings of $21.85 million, or $3.68, an increase of 51.2%, compared with earnings of $14.45 million, or $2.43 per share, during fiscal 2006. Sales for fiscal 2007 increased 30.4% to $317.2 million, from $243.3 million a year earlier.
At 3:17 p.m. ET, the stock had lost $9.36, or 14%, to $55.24.
