Materion Corporation (MTRN) has reported a 43.18 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $3.05 million, or $0.15 a share in the quarter, compared with $5.37 million, or $0.27 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $5.90 million, or $0.29 a share compared with $5.40 million or $0.27 a share, a year ago.
Revenue during the quarter went up marginally by 2.19 percent to $240.67 million from $235.51 million in the previous year period. Gross margin for the quarter contracted 54 basis points over the previous year period to 17.87 percent. Total expenses were 98.58 percent of quarterly revenues, up from 96.80 percent for the same period last year. That has resulted in a contraction of 178 basis points in operating margin to 1.42 percent.
Operating income for the quarter was $3.42 million, compared with $7.53 million in the previous year period.
However, the adjusted operating income for the quarter stood at $7.70 million compared to $7.50 million in the prior year period. At the same time, adjusted operating margin improved 1 basis points in the quarter to 3.20 percent from 3.18 percent in the last year period.
Jugal Vijayvargiya, President and Chief Executive Officer, commented, "I am pleased with our first quarter results and the momentum we have moving into the second quarter and second half of 2017. We grew value-added sales on both a sequential and year-over-year basis, and the acquisition of Heraeus high-performance target materials business was successfully completed late in the quarter."
For financial year 2017, the company projects diluted earnings per share to be in the range of $1.45 to $1.60.
Cash and cash equivalents stood at $16.34 million as on Mar. 31, 2017, down 13.39 percent or $2.53 million from $18.87 million on Apr. 01, 2016.
Working capital increases marginally
Materion Corp has recorded an increase in the working capital over the last year. It stood at $268.19 million as at Mar. 31, 2017, up 4.03 percent or $10.39 million from $257.80 million on Apr. 01, 2016. Current ratio was at 3.78 as on Mar. 31, 2017, up from 3.58 on Apr. 01, 2016.
Cash conversion cycle (CCC) has decreased to 62 days for the quarter from 65 days for the last year period. Days sales outstanding were almost stable at 22 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 50 days for the quarter compared with 51 days for the previous year period. At the same time, days payable outstanding went up to 9 days for the quarter from 8 for the same period last year.
Debt comes down
Materion Corp has recorded a decline in total debt over the last one year. It stood at $32.36 million as on Mar. 31, 2017, down 12.92 percent or $4.80 million from $37.16 million on Apr. 01, 2016. Total debt was 4.20 percent of total assets as on Mar. 31, 2017, compared with 4.91 percent on Apr. 01, 2016. Debt to equity ratio was at 0.07 as on Mar. 31, 2017, down from 0.08 as on Apr. 01, 2016. Interest coverage ratio deteriorated to 6.94 for the quarter from 18.15 for the same period last year.
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