Meritor, Inc. (MTOR) has reported a 31.25 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $22 million, or $0.24 a share in the quarter, compared with $32 million, or $0.35 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $32 million, or $0.35 a share compared with $38 million or $0.41 a share, a year ago. Revenue during the quarter went down marginally by 1.83 percent to $806 million from $821 million in the previous year period. Gross margin for the quarter expanded 27 basis points over the previous year period to 15.01 percent. Total expenses were 93.92 percent of quarterly revenues, up from 93.18 percent for the same period last year. That has resulted in a contraction of 74 basis points in operating margin to 6.08 percent.
Operating income for the quarter was $49 million, compared with $56 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $82 million compared with $81 million in the prior year period. At the same time, adjusted EBITDA margin improved 31 basis points in the quarter to 10.17 percent from 9.87 percent in the last year period.
"This was another strong quarter for Meritor," said Jay Craig, chief executive officer and president. "Continued operational performance, combined with signs of improvement in global end markets, gives us confidence that our 2017 financial performance will be better than previously planned."
For fiscal year 2017, Meritor, Inc. forecasts revenue to be $3,100 million. It projects net income to be $90 million. It expects diluted earnings per share to be $1. It projects diluted earnings per share to be $1.40 on adjusted basis for the same period.
Operating cash flow declines
Meritor, Inc. has generated cash of $30 million from operating activities during the first half, down 23.08 percent or $9 million, when compared with the last year period. The company has spent $38 million cash to meet investing activities during the first six months as against cash outgo of $40 million in the last year period.
The company has spent $15 million cash to carry out financing activities during the first six months as against cash outgo of $100 million in the last year period.
Cash and cash equivalents stood at $138 million as on Mar. 31, 2017, up 46.81 percent or $44 million from $94 million on Mar. 31, 2016.
Working capital drops significantly
Meritor, Inc. has witnessed a decline in the working capital over the last year. It stood at $55 million as at Mar. 31, 2017, down 62.33 percent or $91 million from $146 million on Mar. 31, 2016. Current ratio was at 1.06 as on Mar. 31, 2017, down from 1.19 on Mar. 31, 2016.
Days sales outstanding went up to 45 days for the quarter compared with 43 days for the same period last year.
Days inventory outstanding has decreased to 22 days for the quarter compared with 47 days for the previous year period.
Debt comes down marginally
Meritor, Inc. has recorded a decline in total debt over the last one year. It stood at $989 million as on Mar. 31, 2017, down 1.40 percent or $14 million from $1,003 million on Mar. 31, 2016. Total debt was 39 percent of total assets as on Mar. 31, 2017, compared with 47.92 percent on Mar. 31, 2016.
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]
