Carpenter Technology Corporation (CRS) has reported 39.13 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $7 million, or $0.15 a share in the quarter, compared with $11.50 million, or $0.23 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $7 million, or $0.15 a share compared with $12.40 million or $0.24 a share, a year ago.
Revenue during the quarter dropped 3.70 percent to $427.40 million from $443.80 million in the previous year period. Gross margin for the quarter contracted 32 basis points over the previous year period to 14.62 percent. Total expenses were 96.40 percent of quarterly revenues, up from 95.09 percent for the same period last year. That has resulted in a contraction of 131 basis points in operating margin to 3.60 percent.
Operating income for the quarter was $15.40 million, compared with $21.80 million in the previous year period.
"We generated a notable sequential increase in our results during the second quarter driven by strong execution of our strategy, a stronger product mix and an improving environment across most of our end-use markets, most notably Aerospace, where we are benefitting from solid demand from the new engine platforms coupled with our strong market position in other key sub-markets including fasteners and structural," said Tony Thene, Carpenter’s president & chief executive officer.
Operating cash flow turns negativeCarpenter Technology Corporation has spent $25.80 million cash to meet operating activities during the first half as against cash inflow of $71.60 million in the last year period. Cash flow from investing activities was almost stable for the quarter at $45.10 million, when compared with the previous year period.
Cash flow from financing activities was $10.10 million for the first six months as against cash outgo of $77 million in the last year period.
Cash and cash equivalents stood at $22.50 million as on Dec. 31, 2016, up 6.64 percent or $1.40 million from $21.10 million on Dec. 31, 2015.
Working capital increases marginally
Carpenter Technology Corporation has recorded an increase in the working capital over the last year. It stood at $714.10 million as at Dec. 31, 2016, up 1.88 percent or $13.20 million from $700.90 million on Dec. 31, 2015. Current ratio was at 3.29 as on Dec. 31, 2016, up from 3.09 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 103 days for the quarter from 187 days for the last year period. Days sales outstanding were almost stable at 57 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 88 days for the quarter compared with 167 days for the previous year period. At the same time, days payable outstanding went up to 42 days for the quarter from 37 for the same period last year.
Debt comes down marginallyCarpenter Technology Corporation has recorded a decline in total debt over the last one year. It stood at $629 million as on Dec. 31, 2016, down 2.92 percent or $18.90 million from $647.90 million on Dec. 31, 2015. Total debt was 22.65 percent of total assets as on Dec. 31, 2016, compared with 22.81 percent on Dec. 31, 2015. Debt to equity ratio was at 0.56 as on Dec. 31, 2016, up from 0.53 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 2.08 for the quarter from 3.11 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
