Babcock & Wilcox Enterprises, Inc (BW) has reported a 43.55 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $8.90 million, or $0.18 a share in the quarter, compared with $6.20 million, or $0.11 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $12 million, or $0.24 a share compared with $13.70 million or $0.25 a share, a year ago.
Revenue during the quarter went down marginally by 2.14 percent to $411 million from $420 million in the previous year period. Gross margin for the quarter contracted 59 basis points over the previous year period to 17.96 percent. Total expenses were 97.30 percent of quarterly revenues, down from 97.71 percent for the same period last year. This has led to an improvement of 42 basis points in operating margin to 2.70 percent.
Operating income for the quarter was $11.10 million, compared with $9.60 million in the previous year period.
However, the adjusted operating income for the quarter stood at $15 million compared to $21.90 million in the prior year period. At the same time, adjusted operating margin contracted 156 basis points in the quarter to 3.65 percent from 5.21 percent in the last year period.
”We remain on track to achieve our forecasted results in 2016 despite some reluctance on the part of our power customers to invest, and continue to expect strength moving into 2017 as we remain focused on revenue diversification, margin improvement and excellence in project execution," said Mr. E. James Ferland, chairman and chief executive officer.
Babcock & Wilcox Enterprises forecasts revenue to be $1,800 million for fiscal year 2016. For financial year 2016, the company projects diluted earnings per share to be in the range of $0.63 to $0.83 on adjusted basis.
Operating cash flow turns negative
Babcock & Wilcox Enterprises, Inc has spent $39.80 million cash to meet operating activities during the nine month period as against cash inflow of $93 million in the last year period.
The company has spent $191.60 million cash to meet investing activities during the nine month period as against cash outgo of $25 million in the last year period.
The company has spent $64.60 million cash to carry out financing activities during the nine month period as against cash inflow of $79.10 million in the last year period.
Cash and cash equivalents stood at stood at $65.10 million as at Sep. 30, 2016.
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