AMETEK, Inc. (AME) has reported a 3.54 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $138.93 million, or $0.60 a share in the quarter, compared with $134.17 million, or $0.57 a share for the same period last year.
Revenue during the quarter grew 6.70 percent to $1,007.68 million from $944.40 million in the previous year period. Gross margin for the quarter expanded 5 basis points over the previous year period to 34.01 percent. Total expenses were 78.14 percent of quarterly revenues, up from 77.92 percent for the same period last year. That has resulted in a contraction of 22 basis points in operating margin to 21.86 percent.
Operating income for the quarter was $220.30 million, compared with $208.52 million in the previous year period.
"AMETEK achieved excellent results in the first quarter. Sales were up solidly on strong organic growth and the contributions from recently completed acquisitions," said David A. Zapico, AMETEK Chief Executive Officer. "We were pleased with the return to organic growth earlier in the year than anticipated. This growth, combined with outstanding operating performance across our businesses, enabled us to exceed our first quarter earnings expectations and raise our full year 2017 guidance."
For financial year 2017, the company projects diluted earnings per share to be in the range of $2.40 to $2.48.
For the second-quarter, the company projects diluted earnings per share to be in the range of $0.60 to $0.62.
Working capital increases sharply
AMETEK, Inc. has recorded an increase in the working capital over the last year. It stood at $770.64 million as at Mar. 31, 2017, up 107.14 percent or $398.61 million from $372.04 million on Mar. 31, 2016. Current ratio was at 1.76 as on Mar. 31, 2017, up from 1.29 on Mar. 31, 2016.
Days sales outstanding went down to 54 days for the quarter compared with 58 days for the same period last year.
Days inventory outstanding has decreased to 36 days for the quarter compared with 78 days for the previous year period.
Debt moves up
AMETEK, Inc. has witnessed an increase in total debt over the last one year. It stood at $2,414.53 million as on Mar. 31, 2017, up 8.84 percent or $196.17 million from $2,218.36 million on Mar. 31, 2016. Total debt was 33.08 percent of total assets as on Mar. 31, 2017, compared with 31.71 percent on Mar. 31, 2016. Debt to equity ratio was at 0.71 as on Mar. 31, 2017, up from 0.67 as on Mar. 31, 2016. Interest coverage ratio improved to 8.99 for the quarter from 8.91 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
