ACCO Brands Corporation (ACCO) has reported a 25 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $3.60 million, or $0.03 a share in the quarter, compared with $4.80 million, or $0.04 a share for the same period last year. On an adjusted basis, net profit for the quarter stood at $4.90 million, or $0.04 a share compared with a net loss of $0.90 million, or $0.01 a share in the last year period.
Revenue during the quarter grew 29.38 percent to $359.80 million from $278.10 million in the previous year period. Gross margin for the quarter expanded 117 basis points over the previous year period to 30.79 percent. Total expenses were 97.42 percent of quarterly revenues, down from 97.66 percent for the same period last year. This has led to an improvement of 25 basis points in operating margin to 2.58 percent.
Operating income for the quarter was $9.30 million, compared with $6.50 million in the previous year period.
However, the adjusted operating income for the quarter stood at $16.10 million compared to $7.10 million in the prior year period. At the same time, adjusted operating margin improved 192 basis points in the quarter to 4.47 percent from 2.55 percent in the last year period.
"We continue to effectively manage industry changes, aided by our strong brands, good execution, and additional capabilities and scale from recent acquisitions," said Boris Elisman, Chairman, President and Chief Executive Officer of ACCO Brands. "While the first quarter is seasonally our smallest quarter, the strong start bodes well for the year and enables us to raise our adjusted EPS guidance."
Operating cash flow improves
ACCO Brands Corporation has generated cash of $65.40 million from operating activities during the quarter, up 24.57 percent or $12.90 million, when compared with the last year period.
The company has spent $297.70 million cash to meet investing activities during the quarter as against cash outgo of $3.90 million in the last year period.
Cash flow from financing activities was $306.40 million for the quarter as against cash outgo of $4.70 million in the last year period.
Cash and cash equivalents stood at stood at $118.30 million as at Mar. 31, 2017.
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