Rayonier Advanced Materials Inc (RYAM) has reported a 52.38 percent plunge in profit for the quarter ended Mar. 25, 2017. The company has earned $10 million, or $0.15 a share in the quarter, compared with $21 million, or $0.49 a share for the same period last year. Revenue during the quarter dropped 7.80 percent to $201 million from $218 million in the previous year period. Gross margin for the quarter contracted 44 basis points over the previous year period to 17.91 percent. Total expenses were 87.06 percent of quarterly revenues, up from 85.32 percent for the same period last year. That has resulted in a contraction of 174 basis points in operating margin to 12.94 percent.
Operating income for the quarter was $26 million, compared with $32 million in the previous year period.
“We are off to a strong start in 2017. Our continued focus on costs and operational excellence drove another quarter of solid results,” said Paul Boynton, chairman, president and chief executive officer. “We have now delivered over $90 million of cost transformation improvement against our 4-year, $140 million cost objective and remain solidly on track to deliver the full $30 million cost savings target in 2017.”
For fiscal year 2017, RAYONIER ADVANCED MATERIALS INC forecasts net income to be in the range of $41 million to $48 million.
Operating cash flow drops significantly
Rayonier Advanced Materials Inc has generated cash of $38 million from operating activities during the quarter, down 48.65 percent or $ 36 million, when compared with the last year period. The company has spent $14 million cash to meet investing activities during the quarter as against cash outgo of $20 million in the last year period.
The company has spent $5 million cash to carry out financing activities during the quarter as against cash outgo of $45 million in the last year period.
Cash and cash equivalents stood at $345 million as on Mar. 25, 2017, up 213.64 percent or $235 million from $110 million on Mar. 26, 2016.
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