ALLETE, Inc. (ALE) has reported a 33.28 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $40.30 million, or $0.81 a share in the quarter, compared with $60.40 million, or $1.23 a share for the same period last year.
Revenue during the quarter dropped 24.41 percent to $349.60 million from $462.50 million in the previous year period. Gross margin for the quarter expanded 795 basis points over the previous year period to 55.95 percent. Total expenses were 84.73 percent of quarterly revenues, up from 81.58 percent for the same period last year. That has resulted in a contraction of 315 basis points in operating margin to 15.27 percent.
Operating income for the quarter was $53.40 million, compared with $85.20 million in the previous year period.
"We continue to be pleased with the improvement on Minnesota Power's industrial customer front," said ALLETE chairman, president and chief executive officer Al Hodnik, "including Cliff's United Taconite mine restarting in August, and our recently announced five-year agreement to supply electricity to U.S. Steel."
Working capital turns negative
Working capital of ALLETE, Inc. has turned negative to $42.70 million on Sep. 30, 2016 from positive $85.60 million on Sep. 30, 2015. Current ratio was at 0.89 as on Sep. 30, 2016, down from 1.27 on Sep. 30, 2015.
Days sales outstanding went down to 14 days for the quarter compared with 21 days 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: editor@irisindia.net
