The Timken Company (TKR) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $24.10 million, or $ 0.31 a share in the quarter, against a net loss of $35.70 million, or $0.44 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $36.70 million, or $0.47 a share compared with $49 million or $0.59 a share, a year ago.
Revenue during the quarter dropped 8.34 percent to $654.80 million from $714.40 million in the previous year period. Gross margin for the quarter contracted 166 basis points over the previous year period to 25.06 percent. Operating margin for the quarter period stood at positive 5.02 percent as compared to a negative 20.10 percent for the previous year period.
Operating income for the quarter was $32.90 million, compared with an operating loss of $143.60 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $60.40 million compared with $79.10 million in the prior year period. At the same time, adjusted EBITDA margin contracted 185 basis points in the quarter to 9.22 percent from 11.07 percent in the last year period.
"We performed well in the fourth quarter, giving us a solid finish to the year," said Richard G. Kyle, Timken president and chief executive officer. "Despite the difficult market environment, we delivered historically strong earnings and cash flow in 2016, which is evidence of the structural improvements we’ve made to our business. We advanced our strategy on all fronts and continued to position the company for profitable growth and shareholder value creation over the long term."
For financial year 2017, The Timken Company projects diluted earnings per share to be in the range of $1.90 to $2. It projects diluted earnings per share to be in the range of $2.05 to $2.15 on adjusted basis for the same period.
Operating cash flow improves
The Timken Company has generated cash of $402 million from operating activities during the year, up 7.26 percent or $27.20 million, when compared with the last year.
The company has spent $211 million cash to meet investing activities during the year as against cash outgo of $265.20 million in the last year.
The company has spent $169.40 million cash to carry out financing activities during the year as against cash outgo of $241.60 million in the last year period.
Cash and cash equivalents stood at $148.80 million as on Dec. 31, 2016, up 14.81 percent or $19.20 million from $129.60 million on Dec. 31, 2015.
Debt remains almost stable
Total debt of The Timken Company remained almost stable for the quarter at $659.20 million, when compared with the last year period.
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