Spirit Aerosystems Holdings (SPR) has reported 21.76 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $108.20 million, or $0.89 a share in the quarter, compared with $138.30 million, or $1.01 a share for the same period last year. On an adjusted basis, earnings per share were at $0.89 for the quarter compared with $0.95 in the same period last year.
Revenue during the quarter went down marginally by 2.45 percent to $1,570 million from $1,609.40 million in the previous year period. Gross margin for the quarter contracted 196 basis points over the previous year period to 15.08 percent. Total expenses were 89.75 percent of quarterly revenues, up from 87.21 percent for the same period last year. That has resulted in a contraction of 254 basis points in operating margin to 10.25 percent.
Operating income for the quarter was $160.90 million, compared with $205.80 million in the previous year period.
"2016 was a strong year for Spirit," Spirit president and chief executive officer Tom Gentile said. "We successfully negotiated a global settlement with Airbus on the A350, refinanced our debt after achieving an investment grade credit rating, returned $650 million in capital to shareholders through share repurchases, initiated our first dividend of $0.10 per share, made a seamless leadership transition, and laid the groundwork for a successful 2017."
For financial year 2017, Spirit Aerosystems Holdings expects revenue to be in the range of $6,800 million to $6,900 million. The company projects diluted earnings per share to be in the range of $4.60 to $4.85.
Operating cash flow drops significantlySpirit Aerosystems Holdings has generated cash of $716.90 million from operating activities during the year, down 44.41 percent or $572.80 million, when compared with the last year. The company has spent $253.40 million cash to meet investing activities during the year as against cash outgo of $357.40 million in the last year. It has incurred net capital expenditure of $253.40 million on net basis during the year, down 29.10 percent or $104 million from year ago.
The company has spent $718.70 million cash to carry out financing activities during the year as against cash outgo of $351.10 million in the last year period.
Cash and cash equivalents stood at $697.70 million as on Dec. 31, 2016, down 27.12 percent or $259.60 million from $957.30 million on Dec. 31, 2015.
Working capital drops significantly
Spirit Aerosystems Holdings has witnessed a decline in the working capital over the last year. It stood at $1,366.20 million as at Dec. 31, 2016, down 25.75 percent or $473.90 million from $1,840.10 million on Dec. 31, 2015. Current ratio was at 1.88 as on Dec. 31, 2016, down from 2.26 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 52 days for the quarter from 55 days for the last year period. Days sales outstanding went up to 20 days for the quarter compared with 15 days for the same period last year.
Days inventory outstanding has decreased to 53 days for the quarter compared with 60 days for the previous year period. At the same time, days payable outstanding was almost stable at 20 days for the quarter, when compared with the previous year period.
Debt comes down marginallySpirit Aerosystems Holdings has recorded a decline in total debt over the last one year. It stood at $1,086.70 million as on Dec. 31, 2016, down 2.99 percent or $33.50 million from $1,120.20 million on Dec. 31, 2015. Total debt was 20.10 percent of total assets as on Dec. 31, 2016, compared with 19.39 percent on Dec. 31, 2015. Debt to equity ratio was at 0.56 as on Dec. 31, 2016, up from 0.53 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
