RACINE, Wis., April 08, 2020 (GLOBE NEWSWIRE) — Twin Disc, Inc. (NASDAQ: TWIN), provides an update on the actions it is taking in response to the impact of the COVID-19 crisis.
“We are taking prudent and aggressive measures to respond to the rapidly evolving COVID-19 crisis as well as the significant reduction in the global oil and gas prices,” stated John H. Batten, Chief Executive Officer.
In response to lower demand across many of the company’s global markets, Twin Disc is taking the following temporary actions at its North American operations to reduce costs:
- Temporary layoff of ten salaried employees
- Reducing paid hours of certain salaried positions by 25%
- A 15% reduction in salaries for all remaining full-time employees; 20% for the CEO and COO
- Estimated annualized savings from salaried payroll actions total $4.1 million
- Deferring all non-essential spending and CAPEX projects
Mr. Batten concluded: “The pace and scope of the COVID-19 crisis is unprecedented, which combined with significant declines in global oil and gas prices, has created a very challenging market environment. We are focused on taking the necessary actions, quickly, to respond to current market dynamics, while supporting our global customers, associates, and distribution partners. In addition, we are working with our advisors on seeking assistance and relief under the recently passed 2020 CARES Act. While the actions we announced today relate to our North American operations, all of our global operations are aggressively reducing costs in light of the current environment and taking full advantage of the government assistance packages made available to them.”
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, azimuth drives, 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.
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.
Contact: Jeffrey S. Knutson