Ferro Corporation (FOE) saw its loss widen to $8.88 million, or $0.11 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $4.06 million, or $0.05 a share. On the other hand, adjusted net income for the quarter stood at $22.96 million, or $0.27 a share compared with $21.34 million or $0.24 a share, a year ago.

Revenue during the quarter grew 3.28 percent to $288.53 million from $279.36 million in the previous year period. Gross margin for the quarter expanded 327 basis points over the previous year period to 30.84 percent. Total expenses were 88.44 percent of quarterly revenues, down from 91.13 percent for the same period last year. This has led to an improvement of 270 basis points in operating margin to 11.56 percent.

Operating income for the quarter was $33.37 million, compared with $24.77 million in the previous year period.

However, the adjusted EBITDA for the quarter was almost stable at $49.16 million, when compared with the prior year period. At the same time, adjusted EBITDA margin contracted 51 basis points in the quarter to 17.04 percent from 17.55 percent in the last year period.

"The Ferro team delivered another quarter of strong results, with increased sales and profitability," said Peter Thomas, chairman, president and chief executive officer. "Our acquisitions are clearly creating value, as new businesses integrated in the past 12 months are making significant contributions to consolidated results. The Pigments, Powders and Oxides segment experienced a particularly strong quarter, with double-digit sales growth in both the Pigments and Surface Technology product lines. In our Performance Colors and Glass segment, performance was lifted by growing demand in Asia, which offset weaker demand for glass enamels used in the automotive industry. In the Performance Coatings segment, volume grew 27.3 percent in tile frits and glazes, while demand also increased for porcelain enamel products."

For financial year 2016,Ferro Corporation projects diluted earnings per share to be in the range of $1 to $1.05 on adjusted basis.

The company has spent $26.04 million cash to meet investing activities during the nine month period as against cash outgo of $203.10 million in the last year period. It has incurred net capital expenditure of $14.62 million on net basis during the nine month period, down 59.51 percent or $21.49 million from year ago period.

Cash flow from financing activities was $1.89 million for the nine month period, down 98.24 percent or $105.53 million, when compared with the last year period.

Cash and cash equivalents stood at $40.56 million as on Sep. 30, 2016, down 41.64 percent or $28.94 million from $69.49 million on Sep. 30, 2015.

Working capital remains almost stable

Ferro Corporation has witnessed a decline in the working capital over the last year. It stood at $352.51 million as at Sep. 30, 2016, down 0.72 percent or $2.54 million from $355.05 million on Sep. 30, 2015. Current ratio was at 2.56 as on Sep. 30, 2016, up from 2.50 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 85 days for the quarter from 113 days for the last year period. Days sales outstanding went up to 94 days for the quarter compared with 92 days for the same period last year.

Days inventory outstanding has decreased to 49 days for the quarter compared with 80 days for the previous year period. At the same time, days payable outstanding was almost stable at 57 days for the quarter, when compared with the previous year period.