Momentive Performance Materials (MPMI) saw its loss narrow to $17 million, or $0.35 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $32 million, or $0.67 a share.
Revenue during the quarter went up marginally by 1.43 percent to $567 million from $559 million in the previous year period. Gross margin for the quarter expanded 330 basis points over the previous year period to 19.40 percent. Operating margin for the quarter period stood at positive 1.76 percent as compared to a negative 0.89 percent for the previous year period.
Operating income for the quarter was $10 million, compared with an operating loss of $5 million in the previous year period.
"We are pleased to report solid third quarter results and continued progress on our ongoing transformation initiatives," said Jack Boss, chief executive officer and president. "Our results reflect solid operational performance and continued growth in our specialty silicones portfolio, despite a relatively weak global economic environment. Earlier this month, we completed an important first step at our Leverkusen facility as part of our journey to transform Momentive’s global siloxane footprint. We have now ceased siloxane production at Leverkusen and begun sourcing related intermediates under long-term third party contracts and from other Momentive global sites. We expect this initiative will provide for $10 million of savings on a run-rate basis and remain focused on making strategic investments in our leading specialty technologies and cost structure to drive long-term growth and profitability."
Operating cash flow improves significantlyMomentive Performance Materials has generated cash of $77 million from operating activities during the nine month period, up 148.39 percent or $46 million, when compared with the last year period. The company has spent $84 million cash to meet investing activities during the nine month period as against cash outgo of $90 million in the last year period.
The company has spent $14 million cash to carry out financing activities during the nine month period as against cash inflow of $4 million in the last year period.
Cash and cash equivalents stood at stood at $205 million as at Sep. 30, 2016.
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