Terra Nitrogen Company, L.P (TNH) has reported a 58.50 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $28.80 million, or $1.04 a share in the quarter, compared with $69.40 million, or $2.23 a share for the same period last year.
Revenue during the quarter plunged 39.95 percent to $90.20 million from $150.20 million in the previous year period. Gross margin for the quarter contracted 1297 basis points over the previous year period to 36.36 percent. Total expenses were 68.07 percent of quarterly revenues, up from 53.79 percent for the same period last year. That has resulted in a contraction of 1428 basis points in operating margin to 31.93 percent.
Operating income for the quarter was $28.80 million, compared with $69.40 million in the previous year period.
Working capital drops significantly
Terra Nitrogen Company, L.P has witnessed a decline in the working capital over the last year. It stood at $36.40 million as at Sep. 30, 2016, down 57.48 percent or $49.20 million from $85.60 million on Sep. 30, 2015. Current ratio was at 2.23 as on Sep. 30, 2016, down from 3.24 on Sep. 30, 2015.
Days inventory outstanding has increased to 8 days for the quarter compared with 5 days for the previous year period.
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