Arconic Inc (ARNC) saw its loss widen to $1,248 million, or $2.88 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $701 million, or $1.64 a share. On the other hand, adjusted net income for the quarter stood at $71 million, or $0.12 a share compared with $28 million or $0.03 a share, a year ago. Revenue during the quarter went down marginally by 0.80 percent to $2,967 million from $2,991 million in the previous year period. Gross margin for the quarter expanded 143 basis points over the previous year period to 19.95 percent. Total expenses were 99.02 percent of quarterly revenues, up from 97.12 percent for the same period last year. That has resulted in a contraction of 190 basis points in operating margin to 0.98 percent.
Operating income for the quarter was $29 million, compared with $86 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $284 million compared with $298 million in the prior year period. At the same time, adjusted EBITDA margin contracted 39 basis points in the quarter to 9.57 percent from 9.96 percent in the last year period.
Klaus Kleinfeld, Arconic chairman and chief executive officer said, "In the fourth quarter we completed the successful separation of Alcoa Inc., which has unlocked substantial value for all shareholders. In the face of significant market challenges, we continued to improve the businesses ��" we increased adjusted EBITDA margins 100 basis points or more in each of our three business segments, delivered strong net savings and systematically cut overhead cost. We also strengthened our balance sheet, paid down $750 million of debt and ended the year with a strong cash balance of $1.9 billion."
For fiscal year 2017, Arconic Inc forecasts revenue to be in the range of $11,800 million to $12,400 million. The company expects diluted earnings per share to be in the range of $1.10 to $1.20 on adjusted basis.
For the first-quarter 2017, Arconic Inc forecasts revenue to be in the range of $2,800 million to $3,000 million.
Operating cash flow drops significantly
Arconic Inc has generated cash of $873 million from operating activities during the year, down 44.82 percent or $709 million, when compared with the last year. The company has spent $165 million cash to meet investing activities during the year as against cash outgo of $1,060 million in the last year.
The company has spent $757 million cash to carry out financing activities during the year as against cash outgo of $441 million in the last year period.
Cash and cash equivalents stood at $1,863 million as on Dec. 31, 2016, up 36.78 percent or $501 million from $1,362 million on Dec. 31, 2015.
Working capital increases
Arconic Inc has recorded an increase in the working capital over the last year. It stood at $3,155 million as at Dec. 31, 2016, up 15.06 percent or $413 million from $2,742 million on Dec. 31, 2015. Current ratio was at 2.16 as on Dec. 31, 2016, up from 1.53 on Dec. 31, 2015.
Debt comes down
Arconic Inc has recorded a decline in total debt over the last one year. It stood at $8,084 million as on Dec. 31, 2016, down 8.42 percent or $743 million from $8,827 million on Dec. 31, 2015. Total debt was 40.34 percent of total assets as on Dec. 31, 2016, compared with 24.17 percent on Dec. 31, 2015. Debt to equity ratio was at 1.57 as on Dec. 31, 2016, up from 0.62 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 0.23 for the quarter from 0.70 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
