Tredegar Corporation (TG) has reported 49.14 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $3.70 million, or $0.11 a share in the quarter, compared with $7.28 million, or $0.22 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $6 million, or $0.18 a share compared with $7.50 million or $0.23 a share, a year ago.
Revenue during the quarter grew 7.79 percent to $224.31 million from $208.10 million in the previous year period. Gross margin for the quarter contracted 306 basis points over the previous year period to 15.23 percent. Total expenses were 96.59 percent of quarterly revenues, up from 94.23 percent for the same period last year. That has resulted in a contraction of 235 basis points in operating margin to 3.41 percent.
Operating income for the quarter was $7.65 million, compared with $12 million in the previous year period.
John D. Gottwald, Tredegar’s president and chief executive officer, said, "Earnings were down for the quarter compared to last year primarily due to continued volatile results for Terphane, which has been impacted by industry excess capacity and a poor economic environment in Brazil. In our personal care business unit, we’re encouraged that our product development efforts are delivering new materials that we believe will be value-enhancing for our customers. Our surface protection business unit beat prior year results. We remain focused on expanding our customer base."
Operating cash flow declinesTredegar Corporation has generated cash of $3.62 million from operating activities during the quarter, down 23.28 percent or $ 1.10 million, when compared with the last year period. The company has spent $99.72 million cash to meet investing activities during the quarter as against cash outgo of $7.30 million in the last year period.
Cash flow from financing activities was $95.06 million for the quarter as against cash outgo of $3.17 million in the last year period.
Cash and cash equivalents stood at $28.86 million as on Mar. 31, 2017, down 27.88 percent or $11.16 million from $40.02 million on Mar. 31, 2016.
Working capital increases marginally
Tredegar Corporation has recorded an increase in the working capital over the last year. It stood at $107.95 million as at Mar. 31, 2017, up 4.35 percent or $4.50 million from $103.45 million on Mar. 31, 2016. Current ratio was at 1.82 as on Mar. 31, 2017, down from 1.96 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 19 days for the quarter from 35 days for the last year period. Days sales outstanding were almost stable at 43 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 18 days for the quarter compared with 35 days for the previous year period. At the same time, days payable outstanding was almost stable at 42 days for the quarter, when compared with the previous year period.
Debt increases substantiallyTredegar Corporation has witnessed an increase in total debt over the last one year. It stood at $193 million as on Mar. 31, 2017, up 80.37 percent or $86 million from $107 million on Mar. 31, 2016. Total debt was 25.14 percent of total assets as on Mar. 31, 2017, compared with 16.83 percent on Mar. 31, 2016. Debt to equity ratio was at 0.61 as on Mar. 31, 2017, up from 0.37 as on Mar. 31, 2016. 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: [email protected]
