Materion Corporation (MTRN) has reported a 0.94 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $6.78 million, or $0.33 a share in the quarter, compared with $6.72 million, or $0.33 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $5.80 million, or $0.28 a share compared with $7.20 million or $0.36 a share, a year ago. Revenue during the quarter grew 9.48 percent to $234.33 million from $214.04 million in the previous year period. Gross margin for the quarter contracted 134 basis points over the previous year period to 18.80 percent. Total expenses were 98.44 percent of quarterly revenues, up from 96.23 percent for the same period last year. That has resulted in a contraction of 221 basis points in operating margin to 1.56 percent.
Operating income for the quarter was $3.64 million, compared with $8.06 million in the previous year period.
However, the adjusted operating income for the quarter stood at $7.20 million compared to $8.90 million in the prior year period. At the same time, adjusted operating margin contracted 109 basis points in the quarter to 3.07 percent from 4.16 percent in the last year period.
Richard J. Hipple, Chairman, president and chief executive officer, stated, "Despite a challenging 2016 brought on by weakness in several of our key end markets and the continued strength of the U.S. dollar, we still managed to deliver results in line with the annual earnings guidance we provided at the beginning of 2016. We delivered this performance by continuing our focus on introducing new products, combined with cost reduction initiatives. We are excited as we enter into 2017 and prepare for the integration of the Heraeus high-performance target materials business scheduled to close later in the first quarter of 2017. This acquisition, combined with growth in several key end markets, is forecast to deliver profitable growth in 2017."
For fiscal year 2017, Materion Corporation expects diluted earnings per share to be in the range of $1.45 to $1.60.
Operating cash flow drops significantly
Materion Corporation has generated cash of $67.17 million from operating activities during the year, down 25.55 percent or $23.05 million, when compared with the last year. The company has spent $37.36 million cash to meet investing activities during the year as against cash outgo of $52.03 million in the last year. It has incurred net capital expenditure of $35.60 million on net basis during the year, down 31.57 percent or $16.43 million from year ago.
The company has spent $22.11 million cash to carry out financing activities during the year as against cash outgo of $26.10 million in the last year period.
Cash and cash equivalents stood at $31.46 million as on Dec. 31, 2016, up 29.82 percent or $7.23 million from $24.24 million on Dec. 31, 2015.
Debt comes down significantly
Materion Corporation has recorded a decline in total debt over the last one year. It stood at $4.34 million as on Dec. 31, 2016, down 67.30 percent or $8.93 million from $13.27 million on Dec. 31, 2015. Total debt was 0.59 percent of total assets as on Dec. 31, 2016, compared with 1.79 percent on Dec. 31, 2015. Debt to equity ratio was at 0.01 as on Dec. 31, 2016, down from 0.03 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 9.80 for the quarter from 14.48 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
