Revenue during the quarter dropped 6.13 percent to $389.42 million from $414.85 million in the previous year period. Gross margin for the quarter contracted 32 basis points over the previous year period to 12.91 percent. Total expenses were 95.26 percent of quarterly revenues, up from 93.66 percent for the same period last year. That has resulted in a contraction of 160 basis points in operating margin to 4.74 percent.

Operating income for the quarter was $18.45 million, compared with $26.28 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $33.30 million compared with $50.44 million in the prior year period. At the same time, adjusted EBITDA margin contracted 361 basis points in the quarter to 8.55 percent from 12.16 percent in the last year period.

Pieter Sikkel, Chief Executive Officer and President, said, “Our results for the six months ended September 30, 2016 include increased full service volumes and improved factory efficiencies, due in part to our restructuring and efficiency improvement program. Offsetting some of our improvements were the challenges created by El Niño related wet weather in southern Brazil this year that has reduced gross profit by approximately $24.0 million versus last year. For the full year we expect approximately a $30.0 million negative impact to gross profit and approximately a $5.0 million negative impact to equity in net income (loss) of investee companies from our Brazilian joint venture.