Chemtura Corporation (CEM) has reported 66.67 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $22 million, or $0.34 a share in the quarter, compared with $66 million, or $0.96 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $22 million, or $0.34 a share compared with $30 million or $0.96 a share, a year ago. Revenue during the quarter dropped 3.51 percent to $385 million from $399 million in the previous year period. Gross margin for the quarter expanded 199 basis points over the previous year period to 28.05 percent. Total expenses were 89.35 percent of quarterly revenues, down from 90.98 percent for the same period last year. This has led to an improvement of 163 basis points in operating margin to 10.65 percent.
Operating income for the quarter was $41 million, compared with $36 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.06 million compared with $0.06 million in the prior year period. At the same time, adjusted EBITDA margin was almost stable in the quarter to 0.02 percent when compared with the last year period.
“In the fourth quarter, we focused on finishing the year strong and on progressing towards closing the Lanxess transaction,” said Craig Rogerson, Chemtura's Chairman, President and Chief Executive Officer. “We are pleased that our shareholders have overwhelmingly approved the merger with Lanxess and that we have already received a number of regulatory clearances. The post-closing integration planning is on course and our respective organizations are well positioned to create a stronger, more diverse and higher performing specialty chemical company.”
Operating cash flow declines
Chemtura Corporation has generated cash of $137 million from operating activities during the year, down 13.84 percent or $22 million, when compared with the last year. The company has spent $82 million cash to meet investing activities during the year as against cash outgo of $23 million in the last year.
The company has spent $151 million cash to carry out financing activities during the year as against cash outgo of $189 million in the last year period.
Cash and cash equivalents stood at $220 million as on Dec. 31, 2016, down 31.89 percent or $103 million from $323 million on Dec. 31, 2015.
Working capital declines
Chemtura Corporation has witnessed a decline in the working capital over the last year. It stood at $555 million as at Dec. 31, 2016, down 10.05 percent or $62 million from $617 million on Dec. 31, 2015. Current ratio was at 2.79 as on Dec. 31, 2016, up from 2.71 on Dec. 31, 2015.
Debt comes down
Chemtura Corporation has recorded a decline in total debt over the last one year. It stood at $476 million as on Dec. 31, 2016, down 6.85 percent or $35 million from $511 million on Dec. 31, 2015. Total debt was 21.96 percent of total assets as on Dec. 31, 2016, compared with 21.60 percent on Dec. 31, 2015. Debt to equity ratio was at 0.49 as on Dec. 31, 2016, down from 0.51 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 5.12 for the quarter from 5.14 for the same period last year. 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]
