Crown Holdings Inc (CCK) has reported a 35.44 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $107 million, or $0.77 a share in the quarter, compared with $79 million, or $0.57 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $100 million, or $0.72 a share compared with $96 million or $0.69 a share, a year ago. Revenue during the quarter went up marginally by 0.42 percent to $1,901 million from $1,893 million in the previous year period. Gross margin for the quarter expanded 44 basis points over the previous year period to 20.09 percent. Total expenses were 87.53 percent of quarterly revenues, down from 88.43 percent for the same period last year. This has led to an improvement of 90 basis points in operating margin to 12.47 percent.
Operating income for the quarter was $237 million, compared with $219 million in the previous year period.
Commenting on the quarter, Timothy J. Donahue, president and chief executive officer, stated, “We are off to a solid start in 2017 with adjusted earnings per share increasing 4% over the prior year, led by firm results across most operations.
On an adjusted basis, the company expects diluted earnings per share to be in the range of $1.05 to $1.15 for the second-quarter. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $3.80 to $4 on adjusted basis.
Operating cash flow remains negative
Crown Holdings Inc has spent $320 million cash to meet operating activities during the quarter as against cash outgo of $408 million in the last year period. The company has spent $104 million cash to meet investing activities during the quarter as against cash outgo of $48 million in the last year period.
Cash flow from financing activities was $199 million for the quarter as against cash outgo of $4 million in the last year period.
Cash and cash equivalents stood at $338 million as on Mar. 31, 2017, up 31.52 percent or $81 million from $257 million on Mar. 31, 2016.
Working capital increases sharply
Crown Holdings Inc has recorded an increase in the working capital over the last year. It stood at $392 million as at Mar. 31, 2017, up 110.75 percent or $206 million from $186 million on Mar. 31, 2016. Current ratio was at 1.16 as on Mar. 31, 2017, up from 1.07 on Mar. 31, 2016.
Days sales outstanding went down to 43 days for the quarter compared with 45 days for the same period last year.
Days inventory outstanding has decreased to 42 days for the quarter compared with 79 days for the previous year period.
Debt comes down
Crown Holdings Inc has recorded a decline in total debt over the last one year. It stood at $5,300 million as on Mar. 31, 2017, down 5.34 percent or $299 million from $5,599 million on Mar. 31, 2016. Total debt was 53.70 percent of total assets as on Mar. 31, 2017, compared with 56.33 percent on Mar. 31, 2016. Debt to equity ratio was at 6.17 as on Mar. 31, 2017, down from 10.12 as on Mar. 31, 2016. Interest coverage ratio improved to 3.82 for the quarter from 3.42 for the same period last year.
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