Revenue during the quarter dropped 5.22 percent to $225.30 million from $237.70 million in the previous year period. Gross margin for the quarter contracted 135 basis points over the previous year period to 37.86 percent. Operating margin for the quarter stood at negative 5.95 percent as compared to a positive 3.41 percent for the previous year period.

Operating loss for the quarter was $13.40 million, compared with an operating income of $8.10 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $19.40 million compared with $35.50 million in the prior year period. At the same time, adjusted EBITDA margin contracted 632 basis points in the quarter to 8.61 percent from 14.93 percent in the last year period.

"In the first quarter of 2017, we began the transformation of GCP to a focused construction products technology company. We announced the expected sale of Darex Packaging Technologies and planned repositioning to improve our efficiency and effectiveness," said president and chief executive officer Gregory E. Poling. "Our revenue performance in the quarter was consistent with our expectations due to a more historic seasonal trend and project timing. Earnings were impacted by lower revenue compared to the first quarter of 2016 and expenses not incurred in the prior-year quarter, including the full costs of operating the new company and stranded costs associated with the Darex divestiture."

For financial year 2017, GCP Applied Technologies Inc. expects revenue to grow in the range of 5 percent to 8 percent. It projects diluted earnings per share to be in the range of $0.71 to $0.88 on adjusted basis for the same period.

The company has spent $12.20 million cash to meet investing activities during the quarter as against cash outgo of $13.60 million in the last year period.

The company has spent $8.40 million cash to carry out financing activities during the quarter as against cash inflow of $14.80 million in the last year period.

Working capital increases
GCP Applied Technologies Inc. has recorded an increase in the working capital over the last year. It stood at $259.30 million as at Mar. 31, 2017, up 17.97 percent or $39.50 million from $219.80 million on Mar. 31, 2016. Current ratio was at 1.88 as on Mar. 31, 2017, up from 1.80 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 33 days for the quarter from 39 days for the last year period. Days sales outstanding went down to 34 days for the quarter compared with 42 days for the same period last year.

Days inventory outstanding has decreased to 33 days for the quarter compared with 35 days for the previous year period. At the same time, days payable outstanding went down to 34 days for the quarter from 38 for the same period last year.