United Technologies Corp (UTX) has reported a 69.10 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $1,013 million, or $1.25 a share in the quarter, compared with $3,278 million, or $3.86 a share for the same period last year. On the other hand, adjusted net income from continuing operationsfor the quarter stood at $1,270 million, or $1.56 a share compared with $1,298 million or $1.53 a share, a year ago. Revenue during the quarter went up marginally by 2.51 percent to $14,659 million from $14,300 million in the previous year period. Gross margin for the quarter expanded 135 basis points over the previous year period to 26.85 percent. Total expenses were 88.82 percent of quarterly revenues, down from 97.26 percent for the same period last year. This has led to an improvement of 844 basis points in operating margin to 11.18 percent.
Operating income for the quarter was $1,639 million, compared with $392 million in the previous year period.
However, the adjusted operating income for the quarter was almost stable at $2,160 million when compared with the prior year period. At the same time, adjusted operating margin contracted 33 basis points in the quarter to 14.73 percent from 15.07 percent in the last year period.
"In 2016, UTC delivered solid financial results with adjusted earnings just above the top end of our expectations," said UTC chairman and chief executive officer Gregory Hayes. "UTC also realized significant operational achievements. Our aerospace businesses supported the entry into service of the A320neo and CSeries programs, our Climate, Controls & Security business introduced over 100 new products to enhance future growth, and Otis increased its global segment share for new equipment orders."
For financial year 2017, United Technologies Corp projects revenue to be in the range of $57,500 million to $59,000 million. The company forecasts diluted earnings per share to be in the range of $6.30 to $6.60 on adjusted basis.
Operating cash flow drops significantly
United Technologies Corp has generated cash of $3,880 million from operating activities during the year, down 39.21 percent or $2,503 million, when compared with the last year. The company has spent $2,503 million cash to meet investing activities during the year as against cash inflow of $6,206 million in the last year.
The company has spent $1,188 million cash to carry out financing activities during the year as against cash outgo of $10,785 million in the last year period.
Working capital increases sharply
United Technologies Corp has recorded an increase in the working capital over the last year. It stood at $6,644 million as at Dec. 31, 2016, up 62.52 percent or $2,556 million from $4,088 million on Dec. 31, 2015. Current ratio was at 1.30 as on Dec. 31, 2016, up from 1.18 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 41 days for the quarter from 40 days for the last year period. Days sales outstanding went up to 36 days for the quarter compared with 34 days for the same period last year.
Days inventory outstanding has increased to 37 days for the quarter compared with 35 days for the previous year period. At the same time, days payable outstanding went up to 32 days for the quarter from 30 for the same period last year.
Debt moves up
United Technologies Corp has witnessed an increase in total debt over the last one year. It stood at $23,901 million as on Dec. 31, 2016, up 17.02 percent or $3,476 million from $20,425 million on Dec. 31, 2015. Total debt was 26.64 percent of total assets as on Dec. 31, 2016, compared with 23.35 percent on Dec. 31, 2015. Debt to equity ratio was at 0.82 as on Dec. 31, 2016, up from 0.71 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
