Hubbell Incorporated (HUBB) has reported 4.72 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $64.40 million, or $1.16 a share in the quarter, compared with $61.50 million, or $1.06 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $75.30 million, or $1.35 a share compared with $76 million or $1.31 a share, a year ago. Revenue during the quarter went up marginally by 2.95 percent to $854.20 million from $829.70 million in the previous year period. Gross margin for the quarter contracted 189 basis points over the previous year period to 30.27 percent. Total expenses were 87.38 percent of quarterly revenues, up from 86.51 percent for the same period last year. That has resulted in a contraction of 87 basis points in operating margin to 12.62 percent.
Operating income for the quarter was $107.80 million, compared with $111.90 million in the previous year period.
However, the adjusted operating income for the quarter stood at $123.80 million compared to $118.60 million in the prior year period. At the same time, adjusted operating margin improved 20 basis points in the quarter to 14.49 percent from 14.29 percent in the last year period.
"End markets trended largely as expected in the fourth quarter," said David G. Nord, Chairman, President and Chief Executive Officer. "Flat year-over-year organic sales reflected moderating declines in core industrial and oil markets, robust growth in residential demand, modest increases in non-residential construction, and flat distribution markets. Acquisitions drove sales growth in both the quarter and the year.
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $5.60 to $5.80. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $5.85 to $6.05 on adjusted basis.
Operating cash flow improves
Hubbell Incorporated has generated cash of $398.20 million from operating activities during the year, up 20.27 percent or $67.10 million, when compared with the last year. The company has spent $230 million cash to meet investing activities during the year as against cash outgo of $249.20 million in the last year.
The company has spent $46.80 million cash to carry out financing activities during the year as against cash outgo of $371.10 million in the last year period.
Cash and cash equivalents stood at $437.60 million as on Dec. 31, 2016, up 27.39 percent or $94.10 million from $343.50 million on Dec. 31, 2015.
Working capital increases
Hubbell Incorporated has recorded an increase in the working capital over the last year. It stood at $961.70 million as at Dec. 31, 2016, up 22.56 percent or $177 million from $784.70 million on Dec. 31, 2015. Current ratio was at 2.63 as on Dec. 31, 2016, up from 2.30 on Dec. 31, 2015.
Cash conversion cycle (CCC) was almost stable at 47 days for the quarter, when compared with the last year period. Days sales outstanding went up to 29 days for the quarter compared with 26 days for the same period last year.
Days inventory outstanding has decreased to 41 days for the quarter compared with 44 days for the previous year period. At the same time, days payable outstanding went down to 23 days for the quarter from 24 for the same period last year.
Debt increases substantially
Hubbell Incorporated has witnessed an increase in total debt over the last one year. It stood at $993.70 million as on Dec. 31, 2016, up 54.28 percent or $349.60 million from $644.10 million on Dec. 31, 2015. Total debt was 28.19 percent of total assets as on Dec. 31, 2016, compared with 20.07 percent on Dec. 31, 2015. Debt to equity ratio was at 0.62 as on Dec. 31, 2016, up from 0.37 as on Dec. 31, 2015. 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
