Ameren Corporation (AEE) has reported 2.86 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $102 million, or $0.42 a share in the quarter, compared with $105 million, or $0.43 a share for the same period last year. Revenue during the quarter grew 5.58 percent to $1,514 million from $1,434 million in the previous year period. Gross margin for the quarter expanded 144 basis points over the previous year period to 39.17 percent. Total expenses were 83.22 percent of quarterly revenues, down from 84.66 percent for the same period last year. This has led to an improvement of 144 basis points in operating margin to 16.78 percent.
Operating income for the quarter was $254 million, compared with $220 million in the previous year period.
“We remain on track to deliver within our 2017 earnings guidance range of $2.65 to $2.85 per share despite very mild first quarter weather,” said Warner L. Baxter, chairman, president and chief executive officer of Ameren Corporation. “Our team continued to successfully execute our strategy, including allocating capital to jurisdictions with modern, constructive regulatory frameworks, managing costs in a disciplined manner and reaching a constructive agreement with all parties in Ameren Missouri's recently concluded electric rate review. We expect this execution to deliver superior value to our customers and shareholders."
For fiscal year 2017, the company expects diluted earnings per share to be in the range of $2.65 to $2.85.
Operating cash flow declinesAmeren Corporation has generated cash of $331 million from operating activities during the quarter, down 5.16 percent or $ 18 million, when compared with the last year period. The company has spent $539 million cash to meet investing activities during the quarter as against cash outgo of $510 million in the last year period.
Cash flow from financing activities was $207 million for the quarter as against cash outgo of $118 million in the last year period.
Cash and cash equivalents stood at $8 million as on Mar. 31, 2017, down 38.46 percent or $5 million from $13 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Ameren Corporation was negative $1,312 million on Mar. 31, 2017 compared with negative $381 million on Mar. 31, 2016. Current ratio was at 0.52 as on Mar. 31, 2017, down from 0.79 on Mar. 31, 2016.
Days sales outstanding went up to 22 days for the quarter compared with 21 days for the same period last year.
Days inventory outstanding has decreased to 23 days for the quarter compared with 25 days for the previous year period.
Debt moves up
Ameren Corporation has witnessed an increase in total debt over the last one year. It stood at $8,192 million as on Mar. 31, 2017, up 7.83 percent or $595 million from $7,597 million on Mar. 31, 2016. Total debt was 33.02 percent of total assets as on Mar. 31, 2017, compared with 32.49 percent on Mar. 31, 2016. Debt to equity ratio was at 1.14 as on Mar. 31, 2017, up from 1.08 as on Mar. 31, 2016. Interest coverage ratio improved to 2.57 for the quarter from 2.32 for the same period last year. 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
