Aleris Corporation (ARS) saw its loss widen to $34.60 million in the quarter ended compared with $12.60 million a year ago.
Revenue during the quarter dropped 3.75 percent to $613.10 million from $637 million in the previous year period. Gross margin for the quarter expanded 351 basis points over the previous year period to 10.28 percent. Operating margin for the quarter stood at negative 1.06 percent as compared to a negative 1.32 percent for the previous year period.
Operating loss for the quarter was $6.50 million, compared with an operating loss of $8.40 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $42.80 million compared with $39.30 million in the prior year period. At the same time, adjusted EBITDA margin improved 81 basis points in the quarter to 6.98 percent from 6.17 percent in the last year period.
"Our solid fourth quarter performance across all regions, combined with the significant progress we've made on our strategic growth initiatives, gives us momentum in 2017," Sean Stack, Aleris chairman and chief executive officer said. "Our China facility doubled its aerospace volumes over the past year and contributed positively to our results while our Lewisport automotive expansion is on track to hit key milestones and begin serving customers later this year. We are also encouraged by additional volume from our global aerospace customers that will provide a strong base for long-term growth."
Operating cash flow drops significantly
Aleris Corporation has generated cash of $12 million from operating activities during the year, down 89.96 percent or $107.50 million, when compared with the last year.
The company has spent $354.60 million cash to meet investing activities during the year as against cash inflow of $273.70 million in the last year.
Cash flow from financing activities was $338.10 million for the year as against cash outgo of $359.90 million in the last year period.
Cash and cash equivalents stood at $55.60 million as on Dec. 31, 2016, down 10.61 percent or $6.60 million from $62.20 million on Dec. 31, 2015.
Working capital increases
Aleris Corporation has recorded an increase in the working capital over the last year. It stood at $370.90 million as at Dec. 31, 2016, up 15.29 percent or $49.20 million from $321.70 million on Dec. 31, 2015. Current ratio was at 1.78 as on Dec. 31, 2016, up from 1.69 on Dec. 31, 2015.
Debt increases substantially
Aleris Corporation has witnessed an increase in total debt over the last one year. It stood at $1,466.20 million as on Dec. 31, 2016, up 31.11 percent or $347.90 million from $1,118.30 million on Dec. 31, 2015. Total debt was 61.35 percent of total assets as on Dec. 31, 2016, compared with 51.70 percent on Dec. 31, 2015. Debt to equity ratio was at 6.77 as on Dec. 31, 2016, up from 3.42 as on Dec. 31, 2015.
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