Today, Twin Disc Inc. provided an update on the actions it has taken in response to the coronavirus pandemic.
“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,” John H. Batten, the Racine, Wis.-based company’s CEO, said in a statement.
The company has seen decreased demand across many of the company’s global markets. Thus, Twin Disc said it is taking the following temporary actions at its North American operations to reduce costs:
Temporary layoff of 10 salaried employees;
Reducing paid hours of certain salaried positions by 25%;
A 15% reduction in salaries for all remaining full-time employees and 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.
“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,” Batten said. “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 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.”
Twin Disc designs, manufactures and sells marine and heavy-duty off-highway power transmission equipment. Products 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.