Twin Disc Inc (TWIN) SEC Filing 10-K Annual report for the fiscal year ending Thursday, June 30, 2016

Exhibit 99.1

TWIN DISC, INC. ANNOUNCES FISCAL 2016

FOURTH QUARTER FINANCIAL RESULTS

●   Generated $8.7 Million in Operating Cash Flow in Fourth Quarter

●   Fourth Quarter Gross Profit Percent Highest of the Year

●   Strong Reduction in Debt as a result of Significant Operating Cash Flow

●   Global Oil and Gas and Asia Commercial Marine Markets Remain Challenging

RACINE, WISCONSIN—August 18, 2016 —

Sales for the fiscal 2016 fourth quarter were $42,646,000, compared to $67,334,000 for the same period last year. For fiscal 2016, sales were $166,282,000, compared to $265,790,000 for fiscal 2015. The sales decline for both the fiscal 2016 fourth quarter and full year is the result of reduced demand for the Company’s oil and gas related products in both North America and Asia driven by the global decline in oil and natural gas production, along with softening demand in Asia for the Company’s commercial marine products. Demand from customers in Europe remained weak, while overall demand in North America was relatively stable for the Company’s commercial marine and non-oil and gas industrial products. Currency had an unfavorable impact on fiscal 2016 sales compared to 2015 totaling $7,877,000 for the full fiscal year, due to the strengthening of the U.S. dollar against the Euro and Asian currencies.

Commenting on the results, John H. Batten, President and Chief Executive Officer, said: “Fiscal 2016 was a very challenging year. The decline in oil prices and subsequent collapse of North American oil production severely impacted demand for our oil and gas transmissions used in pressure-pumping applications. The impacts of lower oil prices spread to other markets as we experienced weaker demand from international customers, as well as lower demand from commercial marine customers that manufacture offshore crew boats. We responded to this difficult cycle by restructuring our operations, implementing cost reduction initiatives, and lowering fixed costs. As a result of these actions, we have eliminated more than $7,500,000 of costs from our operations. We continue to watch our markets closely, and evaluate our manufacturing costs and global footprint to align our cost structure with future volumes, while maintaining our ability to execute and to succeed when our markets eventually come back.”