AMETEK, Inc. (AME) has reported a 16.44 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $130.69 million, or $0.56 a share in the quarter, compared with $156.40 million, or $0.65 a share for the same period last year.
Revenue during the quarter dropped 5.36 percent to $945.03 million from $998.53 million in the previous year period. Gross margin for the quarter contracted 156 basis points over the previous year period to 35.17 percent. Total expenses were 78.72 percent of quarterly revenues, up from 76.20 percent for the same period last year. That has resulted in a contraction of 252 basis points in operating margin to 21.28 percent.
Operating income for the quarter was $201.12 million, compared with $237.62 million in the previous year period.
"I am pleased with our team's performance having delivered results that met our expectations in a challenging macro environment," said David A. Zapico, AMETEK chief executive officer. "Although prior year comparisons were impacted by weakness in oil and gas and metals markets, we are encouraged to see these markets begin to stabilize."
For financial year 2016, The company projects diluted earnings per share to be in the range of $0.57 to $0.59. The company projects diluted earnings per share to be in the range of $2.29 to $2.31.
Working capital drops significantly
AMETEK, Inc. has witnessed a decline in the working capital over the last year. It stood at $480.15 million as at Sep. 30, 2016, down 27.83 percent or $185.11 million from $665.26 million on Sep. 30, 2015. Current ratio was at 1.39 as on Sep. 30, 2016, down from 1.72 on Sep. 30, 2015.
Days sales outstanding went up to 59 days for the quarter compared with 57 days for the same period last year.
Days inventory outstanding has decreased to 40 days for the quarter compared with 79 days for the previous year period.
Debt moves up
AMETEK, Inc. has witnessed an increase in total debt over the last one year. It stood at $2,154.43 million as on Sep. 30, 2016, up 12.38 percent or $237.36 million from $1,917.07 million on Sep. 30, 2015. Total debt was 30.88 percent of total assets as on Sep. 30, 2016, compared with 28.85 percent on Sep. 30, 2015. Debt to equity ratio was at 0.64 as on Sep. 30, 2016, up from 0.58 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 8.52 for the quarter from 10.03 for the same period last year.
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