Woodward Inc (WWD) has reported a 26.14 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $63.15 million, or $0.99 a share in the quarter, compared with $50.06 million, or $0.77 a share for the same period last year.
Revenue during the quarter grew 5.03 percent to $590.92 million from $562.62 million in the previous year period. Gross margin for the quarter contracted 36 basis points over the previous year period to 28.03 percent. Total expenses were 85.60 percent of quarterly revenues, down from 86.40 percent for the same period last year. This has led to an improvement of 80 basis points in operating margin to 14.40 percent.
Operating income for the quarter was $85.08 million, compared with $76.50 million in the previous year period.
"As anticipated, our Aerospace segment delivered a strong year, while our Industrial segment experienced weakness," said Thomas A. Gendron, Chairman and Chief Executive Officer. "We continue to take actions to optimize costs and increase operational efficiencies in both segments. We believe we are at or near the bottom of the cycle in Industrial, while Aerospace is well positioned to continue delivering strong performance."
Woodward Inc expects revenue to grow in the range of 4 percent to 6 percent for the financial year 2017. For financial year 2017, the company projects diluted earnings per share to be in the range of $2.95 to $3.25.
Operating cash flow improves significantly
Woodward Inc has generated cash of $435.38 million from operating activities during the year, up 47.09 percent or $139.39 million, when compared with the last year.
The company has spent $173.95 million cash to meet investing activities during the year as against cash outgo of $284.08 million in the last year. It has incurred net capital expenditure of $169.03 million on net basis during the year, down 40.50 percent or $115.06 million from year ago.
The company has spent $260.99 million cash to carry out financing activities during the year as against cash outgo of $34.01 million in the last year period.
Cash and cash equivalents stood at $81.09 million as on Sep. 30, 2016, down 1.35 percent or $1.11 million from $82.20 million on Sep. 30, 2015.
Debt comes down
Woodward Inc has recorded a decline in total debt over the last one year. It stood at $727.15 million as on Sep. 30, 2016, down 14.54 percent or $123.76 million from $850.92 million on Sep. 30, 2015. Total debt was 27.52 percent of total assets as on Sep. 30, 2016, compared with 33.50 percent on Sep. 30, 2015. Debt to equity ratio was at 0.60 as on Sep. 30, 2016, down from 0.74 as on Sep. 30, 2015. Interest coverage ratio improved to 11.96 for the quarter from 10.19 for the same period last year.
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