AMETEK, Inc. (AME) has reported a 20.27 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $109.11 million, or $0.47 a share in the quarter, compared with $136.84 million, or $0.57 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $134.68 million, or $0.58 a share compared with $150.71 million or $0.63 a share, a year ago.
Revenue during the quarter went down marginally by 1.52 percent to $972.95 million from $987.98 million in the previous year period. Gross margin for the quarter contracted 257 basis points over the previous year period to 30 percent. Total expenses were 82.20 percent of quarterly revenues, up from 78.86 percent for the same period last year. That has resulted in a contraction of 333 basis points in operating margin to 17.80 percent.
Operating income for the quarter was $173.22 million, compared with $208.83 million in the previous year period.
However, the adjusted operating income for the quarter stood at $212.68 million compared to $229.54 million in the prior year period. At the same time, adjusted operating margin contracted 137 basis points in the quarter to 21.86 percent from 23.23 percent in the last year period.
"I am very pleased with our team's performance during 2016 in what was a challenging global macro environment. As we had anticipated, business conditions stabilized and we delivered solid results in the fourth quarter that were in-line with our expectations," said David A. Zapico, AMETEK chief executive officer.
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $2.34 to $2.46.
For the first-quarter, the company forecasts diluted earnings per share to be in the range of $0.55 to $0.57.
Debt moves up
AMETEK, Inc. has witnessed an increase in total debt over the last one year. It stood at $2,341.56 million as on Dec. 31, 2016, up 20.82 percent or $403.53 million from $1,938.04 million on Dec. 31, 2015. Total debt was 32.98 percent of total assets as on Dec. 31, 2016, compared with 29.08 percent on Dec. 31, 2015. Debt to equity ratio was at 0.72 as on Dec. 31, 2016, up from 0.60 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 7.34 for the quarter from 9.18 for the same period last year.
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