Babcock & Wilcox Enterprises, Inc. (BW) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $7 million, or $ 0.14 a share in the quarter, against a net profit of $10.50 million, or $0.20 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $2.40 million, or $0.05 a share compared with a net profit of $14.30 million, or $0.27 a share in the last year period. Revenue during the quarter dropped 3.22 percent to $391.10 million from $404.10 million in the previous year period. Gross margin for the quarter contracted 374 basis points over the previous year period to 16.08 percent. Operating margin for the quarter stood at negative 2.25 percent as compared to a positive 4.28 percent for the previous year period.
Operating loss for the quarter was $8.80 million, compared with an operating income of $17.30 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $2.80 million compared to operating profit of $21.30 million in prior year period.
"First quarter results were slightly ahead of our expectations driven by good gross margin performance in Power and disciplined cost control throughout the organization," said Mr. E. James Ferland, Chairman and Chief Executive Officer. "Our Renewable segment project portfolio is performing within the revised cost and schedule forecast we provided earlier in the year. Integration of B&W Universal within our Industrial segment is going well, and we are excited about the cost and revenue synergies we see ahead of us, as highlighted by B&W SPIG's strong U.S. bookings this quarter."
For financial year 2017, the company projects diluted earnings per share to be in the range of $0.75 to $0.95 on adjusted basis.
Operating cash flow remains negative
Babcock & Wilcox Enterprises, Inc. has spent $74.80 million cash to meet operating activities during the quarter as against cash outgo of $37.90 million in the last year period. The company has spent $52.20 million cash to meet investing activities during the quarter as against cash outgo of $6.20 million in the last year period.
Cash flow from financing activities was $76 million for the quarter as against cash outgo of $35.20 million in the last year period.
Cash and cash equivalents stood at stood at $46.30 million as at Mar. 31, 2017.
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