Ball Corporation (BLL) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $68 million, or $ 0.38 a share in the quarter, against a net loss of $127 million, or $0.90 a share in the last year period.
Revenue during the quarter surged 40.83 percent to $2,473 million from $1,756 million in the previous year period. Gross margin for the quarter expanded 78 basis points over the previous year period to 20.14 percent. Operating margin for the quarter period stood at positive 6.15 percent as compared to a negative 6.26 percent for the previous year period.
Operating income for the quarter was $152 million, compared with an operating loss of $110 million in the previous year period.
"Our first quarter results from operations exceeded our expectations and higher corporate costs were offset by a lower effective tax rate. The company's global beverage can volume increased in the quarter on a pro forma basis led by improved volumes in the Americas and Europe, global metal aerosol growth offset continued declines in U.S. food cans and aerospace won additional work," said John A. Hayes, chairman, president and chief executive officer.
Operating cash flow remains negative
Ball Corporation has spent $398 million cash to meet operating activities during the quarter as against cash outgo of $386 million in the last year period.
The company has spent $91 million cash to meet investing activities during the quarter as against cash outgo of $185 million in the last year period.
Cash flow from financing activities was $380 million for the quarter, down 33.57 percent or $192 million, when compared with the last year period.
Cash and cash equivalents stood at $458 million as on Mar. 31, 2017, up 123.41 percent or $253 million from $205 million on Mar. 31, 2016.
Working capital increases sharply
Ball Corporation has recorded an increase in the working capital over the last year. It stood at $889 million as at Mar. 31, 2017, up 876.92 percent or $798 million from $91 million on Mar. 31, 2016. Current ratio was at 1.29 as on Mar. 31, 2017, up from 1.04 on Mar. 31, 2016.
Cash conversion cycle (CCC) has increased to 9 days for the quarter from 2 days for the last year period. Days sales outstanding went down to 47 days for the quarter compared with 49 days for the same period last year.
Days inventory outstanding has decreased to 35 days for the quarter compared with 60 days for the previous year period. At the same time, days payable outstanding went down to 92 days for the quarter from 107 for the same period last year.
Debt increases substantially
Ball Corporation has witnessed an increase in total debt over the last one year. It stood at $7,973 million as on Mar. 31, 2017, up 37.49 percent or $2,174 million from $5,799 million on Mar. 31, 2016. Total debt was 47.90 percent of total assets as on Mar. 31, 2017, compared with 57.65 percent on Mar. 31, 2016. Debt to equity ratio was at 2.14 as on Mar. 31, 2017, down from 5.38 as on Mar. 31, 2016.
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