-
Annualized Savings from These Actions is approximately $4.3
million; in addition to $6.0 million of Savings Announced in the
Fiscal 2015 Fourth Quarter
-
Management to Present at Robert W. Baird & Co. 2015 Industrial
Conference
RACINE, Wis.--(BUSINESS WIRE)--
Twin Disc, Inc. (NASDAQ: TWIN), today announced additional
restructuring and cost reduction activities to further reduce expenses,
as a result of challenging global market conditions within the Company's
oil and gas, global pleasure craft and Asian commercial marine markets.
Once fully implemented, the Company expects $4.3 million of annual
savings from these actions, in addition to $6.0 million of annual
savings announced in the fiscal 2015 fourth quarter.
Initiatives under the current plan include the reductions in the base
salaries of the Company's corporate officers, the elimination of 15
salaried positions, reductions in base salaries and wages of salaried
and hourly employees at the Company's headquarters and domestic
manufacturing facilities, and temporary layoffs at its Racine operation.
In addition, the Company intends to reduce marketing, travel and
professional service expenses.
John H. Batten, President and Chief Executive Officer, said: "As we
discussed over the past two quarters, we are adjusting our business for
challenging global market conditions within the Company's oil and gas,
global pleasure craft and Asian commercial marine markets. We understand
the actions we announced today and in the fourth quarter are difficult
for our employees and communities. But given the uncertainty in many of
our traditional markets, these cost reduction activities are necessary.
We will continue to evaluate additional activities to align our global
staffing and manufacturing capacity with current and forecasted market
demand."
"In addition, we recently announced capital reallocation initiatives,
including the sale of our distribution territories in the mid-Atlantic
and south east regions of the United States. These divestitures were
completed in the third quarter of fiscal 2015 and the first quarter of
fiscal 2016, respectively, and generated approximately $5.0 million in
capital. The proceeds from these divestitures will be used for
investments in new technologies and product line enhancements aimed at
generating growth and greater profitability. We remain firmly committed
to the long-term growth potential of our markets, and we are confident
these cost reduction and capital reallocation initiatives will improve
our competitiveness as global markets recover. With a strong customer
base and outstanding global reputation for technical innovation, product
quality and service, I am confident the Company is well positioned for
future growth."
John H. Batten, President and Chief Executive Officer, and Jeffrey S.
Knutson, Vice President - Finance, Chief Financial Officer, Treasurer
and Secretary, will present at the Robert W. Baird & Co. 2015 Industrial
Conference in Chicago, Illinois on November 10, 2015 at 7:30 a.m. CT.
About Twin Disc, Inc.
Twin Disc, Inc. designs, manufactures and sells marine and heavy-duty
off-highway power transmission equipment. Products offered include:
marine transmissions, surface drives, propellers and boat management
systems, as well as power-shift transmissions, hydraulic torque
converters, power take-offs, industrial clutches and control systems.
The Company sells its products to customers primarily in the pleasure
craft, commercial and military marine markets, as well as in the energy
and natural resources, government and industrial markets. The Company's
worldwide sales to both domestic and foreign customers are transacted
through a direct sales force and a distributor network.
Forward-Looking Statements
This press release may contain statements that are forward looking as
defined by the Securities and Exchange Commission in its rules,
regulations and releases. The Company intends that such forward-looking
statements be subject to the safe harbors created thereby. All
forward-looking statements are based on current expectations regarding
important risk factors including those identified in the Company's most
recent periodic report and other filings with the Securities and
Exchange Commission. Accordingly, actual results may differ materially
from those expressed in the forward-looking statements, and the making
of such statements should not be regarded as a representation by the
Company or any other person that the results expressed therein will be
achieved.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151109006546/en/
Twin Disc, Inc.
Jeffrey S. Knutson, 262-638-4242
Source: Twin Disc, Inc.
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