Twin Disc (Nasdaq: TWIN) 2Q profit jumps, but shares fall

Palm Beach, FL 1/23/12 (StreetBeat) -- Power transmission equipment maker Twin Disc Inc. (NASDAQ: TWIN) said Monday that its fiscal second quarter earnings jumped 45 percent from a year earlier on strong demand from oil and gas customers.

But the company's results declined from the fiscal first quarter and it said its order backlog shrunk. Its shares fell more than 15 percent, or $6.16, to $33.22 in morning trading.

For the quarter that ended Dec. 30, the company reported net income of $5.9 million, or 51 cents per share, compared with year-ago results of $4 million, or 35 cents per share.

Revenue rose 10 percent to $82.9 million from $75.16 million a year earlier.

The company attributed its improving sales to strong demand in oil and gas markets. It reported stable to slightly increased sales in a number of other markets, including airport rescue and firefighting, land- and marine-based military, commercial marine and pleasure craft markets.

Twin Disc said its six-month backlog as of Dec. 31 was $148.5 million, compared with $146.9 million as of Sept. 30. It said the slowing backlog wasn't an indication of slowing demand.

The company also announced Monday that its board increased its quarterly cash dividend to 9 cents from 8 cents. The dividend is payable on March 1 to shareholders of record on Feb. 10.

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