Armstrong World Industries, Inc. (AWI) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $27.10 million, or $ 0.49 a share in the quarter, against a net loss of $13.80 million, or $0.25 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $25 million, or $0.45 a share compared with $16 million or $0.29 a share, a year ago.
Revenue during the quarter went up marginally by 0.20 percent to $297.90 million from $297.30 million in the previous year period. Gross margin for the quarter expanded 28 basis points over the previous year period to 28.77 percent. Total expenses were 86.47 percent of quarterly revenues, down from 98.02 percent for the same period last year. This has led to an improvement of 1154 basis points in operating margin to 13.53 percent.
Operating income for the quarter was $40.30 million, compared with $5.90 million in the previous year period.
However, the adjusted operating income for the quarter stood at $47 million compared to $45 million in the prior year period. At the same time, adjusted operating margin improved 64 basis points in the quarter to 15.78 percent from 15.14 percent in the last year period.
"It's encouraging to see the acceleration of both price and mix in the Americas, and the earnings improvement in our International businesses in the quarter," said Vic Grizzle, chief executive officer. "I'm especially pleased to see full year volume growth in the Americas of 2.5%."
For fiscal year 2017, Armstrong World Industries, Inc. forecasts revenue to be in the range of $1,290 million to $1,320 million. The company expects diluted earnings per share to be in the range of $2.60 to $2.70 on adjusted basis.
Operating cash flow drops significantly
Armstrong World Industries, Inc. has generated cash of $49.30 million from operating activities during the year, down 75.80 percent or $154.40 million, when compared with the last year. The company has spent $17 million cash to meet investing activities during the year as against cash outgo of $101.50 million in the last year.
The company has spent $128.90 million cash to carry out financing activities during the year as against cash outgo of $32.30 million in the last year period.
Working capital drops significantly
Armstrong World Industries, Inc. has witnessed a decline in the working capital over the last year. It stood at $182.10 million as at Dec. 31, 2016, down 59.03 percent or $262.40 million from $444.50 million on Dec. 31, 2015. Current ratio was at 1.81 as on Dec. 31, 2016, down from 2.02 on Dec. 31, 2015.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
