Kaiser Aluminum Corporation (KALU) has reported a 36.88 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $36 million, or $2.04 a share in the quarter, compared with $26.30 million, or $1.44 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $26.70 million, or $1.52 a share compared with $27.50 million or $1.51 a share, a year ago. Revenue during the quarter grew 3.53 percent to $355.30 million from $343.20 million in the previous year period. Gross margin for the quarter contracted 185 basis points over the previous year period to 21.81 percent. Total expenses were 83.25 percent of quarterly revenues, down from 86.95 percent for the same period last year. This has led to an improvement of 369 basis points in operating margin to 16.75 percent.
Operating income for the quarter was $59.50 million, compared with $44.80 million in the previous year period.
However, the adjusted operating income for the quarter stood at $45 million compared to $47 million in the prior year period. At the same time, adjusted operating margin contracted 103 basis points in the quarter to 12.67 percent from 13.69 percent in the last year period.
"Overall, we achieved solid first quarter results," said Jack A. Hockema, chairman and chief executive officer. "As we discussed during our February earnings call, market-driven headwinds from lower sales margins and commercial aerospace supply chain destocking, combined with internal headwinds related to planned construction-related inefficiencies at our Trentwood rolling mill, negatively impacted our first quarter results. Despite these headwinds, our first quarter 2017 adjusted EBITDA and adjusted EBITDA margin were comparable to the strong prior year period driven by solid operating performance and improved costs."
Working capital increases sharply
Kaiser Aluminum Corporation has recorded an increase in the working capital over the last year. It stood at $482.30 million as at Mar. 31, 2017, up 67.99 percent or $195.20 million from $287.10 million on Mar. 31, 2016. Current ratio was at 4.13 as on Mar. 31, 2017, up from 2.79 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 44 days for the quarter from 85 days for the last year period. Days sales outstanding went up to 37 days for the quarter compared with 36 days for the same period last year.
Days inventory outstanding has decreased to 33 days for the quarter compared with 75 days for the previous year period. At the same time, days payable outstanding was almost stable at 26 days for the quarter, when compared with the previous year period.
Debt increases substantially
Kaiser Aluminum Corporation has witnessed an increase in total debt over the last one year. It stood at $368.90 million as on Mar. 31, 2017, up 89.28 percent or $174 million from $194.90 million on Mar. 31, 2016. Total debt was 26.11 percent of total assets as on Mar. 31, 2017, compared with 15.76 percent on Mar. 31, 2016. Debt to equity ratio was at 0.46 as on Mar. 31, 2017, up from 0.25 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 10.62 for the quarter from 12.11 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
