TWIN DISC INC

CFO Perspective

Jeffrey S. Knutson, Vice President of Finance, Chief Financial Officer, Treasurer and Secretary stated, "In the second quarter, we experienced near-term pressure on margins partially due to mix and several charges associated with inventory rationalization from the Katsa acquisition as we eliminated redundant inventory, streamlined operations and implemented synergies. As we move through the year, we are focused on identifying and realizing additional operational efficiencies to reduce margin pressure through prudent cost management and executing on our commercial strategy. During the quarter, we delivered solid operating cash flow marked by our healthy inventory levels, reinforcing our ability to execute on operational priorities. Looking ahead, we remain confident in the strength of our financial position and our ability to support continued growth while maintaining a healthy balance sheet."