Caterpillar (CAT) has reported 29.15 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $192 million, or $0.32 a share in the quarter, compared with $271 million, or $0.46 a share for the same period last year.
Revenue during the quarter grew 3.82 percent to $9,822 million from $9,461 million in the previous year period. Gross margin for the quarter expanded 329 basis points over the previous year period to 29.58 percent. Total expenses were 95.75 percent of quarterly revenues, up from 94.78 percent for the same period last year. That has resulted in a contraction of 98 basis points in operating margin to 4.25 percent.
Operating income for the quarter was $417 million, compared with $494 million in the previous year period.
"Our team delivered outstanding operational performance and, for the first time in more than two years, same quarter sales and revenues increased," said Caterpillar chief executive officer Jim Umpleby. "We’re also benefiting from our significant cost reduction and restructuring actions, which have improved cash flow and further strengthened an already healthy balance sheet. With this momentum, we will continue to focus investment on improving our competitive position by investing in new technologies and improving our productivity to deliver profit growth and shareholder value."
For financial year 2017, Caterpillar forecasts revenue to be in the range of $36,000 million to $39,000 million. The company forecasts diluted earnings per share to be $2.10. The company forecasts diluted earnings per share to be $3.75 on adjusted basis.
Operating cash flow improves significantlyCaterpillar has generated cash of $1,541 million from operating activities during the quarter, up 214.49 percent or $1,051 million, when compared with the last year period. The company has spent $125 million cash to meet investing activities during the quarter as against cash outgo of $572 million in the last year period.
Cash flow from financing activities was $879 million for the quarter as against cash outgo of $503 million in the last year period.
Working capital increases
Caterpillar has recorded an increase in the working capital over the last year. It stood at $7,913 million as at Mar. 31, 2017, up 5.04 percent or $380 million from $7,533 million on Mar. 31, 2016. Current ratio was at 1.29 as on Mar. 31, 2017, down from 1.29 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 133 days for the quarter from 202 days for the last year period. Days sales outstanding went down to 142 days for the quarter compared with 145 days for the same period last year.
Days inventory outstanding has decreased to 59 days for the quarter compared with 119 days for the previous year period. At the same time, days payable outstanding went up to 67 days for the quarter from 63 for the same period last year.
Debt moves up marginallyCaterpillar has witnessed an increase in total debt over the last one year. It stood at $24,666 million as on Mar. 31, 2017, up 4.81 percent or $1,132 million from $23,534 million on Mar. 31, 2016. Total debt was 31.81 percent of total assets as on Mar. 31, 2017, compared with 30.05 percent on Mar. 31, 2016. Debt to equity ratio was at 1.81 as on Mar. 31, 2017, up from 1.49 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 3.39 for the quarter from 3.83 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: [email protected]
