Methode Electronics (MEI) has reported 1.76 percent rise in profit for the quarter ended Apr. 29, 2017. The company has earned $23.10 million, or $0.62 a share in the quarter, compared with $22.70 million, or $0.61 a share for the same period last year.
Revenue during the quarter grew 3.24 percent to $219.70 million from $212.80 million in the previous year period. Gross margin for the quarter contracted 345 basis points over the previous year period to 25.13 percent. Total expenses were 88.21 percent of quarterly revenues, up from 85.24 percent for the same period last year. That has resulted in a contraction of 297 basis points in operating margin to 11.79 percent.
Operating income for the quarter was $25.90 million, compared with $31.40 million in the previous year period.
President and chief executive officer Donald W. Duda said, "The proposed acquisition of Procoplast is expected to complement our European automotive business with high volume, highly automated injection production lines for automotive transmission and brake products. Through this acquisition, Methode would gain new customers, including Bosch, Kiekert and ZF-TRW, as well as additional opportunities in sensors."
For fiscal year 2018, Methode Electronics forecasts revenue to be in the range of $807 million to $827 million. The company expects diluted earnings per share to be in the range of $2.43 to $2.63.
Operating cash flow improves significantlyMethode Electronics has generated cash of $145.20 million from operating activities during the year, up 31.17 percent or $34.50 million, when compared with the last year. Cash flow from investing activities was almost stable for the quarter at $21.70 million, when compared with the previous year period. It has incurred net capital expenditure of $21.70 million on net basis during the year, up 0.46 percent or $0.10 million from year ago.
The company has spent $47 million cash to carry out financing activities during the year as against cash outgo of $28.70 million in the last year period.
Cash and cash equivalents stood at $294 million as on Apr. 29, 2017, up 29.06 percent or $66.20 million from $227.80 million on Apr. 30, 2016.
Working capital increases
Methode Electronics has recorded an increase in the working capital over the last year. It stood at $405.90 million as at Apr. 29, 2017, up 7.30 percent or $27.60 million from $378.30 million on Apr. 30, 2016. Current ratio was at 4.26 as on Apr. 29, 2017, up from 4.21 on Apr. 30, 2016.
Cash conversion cycle (CCC) has decreased to 29 days for the quarter from 37 days for the last year period. Days sales outstanding went down to 34 days for the quarter compared with 38 days for the same period last year.
Days inventory outstanding has decreased to 16 days for the quarter compared with 20 days for the previous year period. At the same time, days payable outstanding was almost stable at 21 days for the quarter, when compared with the previous year period.
Debt comes down significantlyMethode Electronics has recorded a decline in long-term debt over the last one year. It stood at $27 million as on Apr. 29, 2017, down 52.63 percent or $30 million from $57 million on Apr. 30, 2016. Total debt was 3.84 percent of total assets as on Apr. 29, 2017, compared with 8.69 percent on Apr. 30, 2016. Debt to equity ratio was at 0.05 as on Apr. 29, 2017, down from 0.12 as on Apr. 30, 2016. Interest coverage ratio deteriorated to 259 for the quarter from 44.86 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]
