Calgon Carbon Corporation (CCC) has reported a 47.26 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $6.38 million, or $0.13 a share in the quarter, compared with $12.11 million, or $0.23 a share for the same period last year.
Revenue during the quarter dropped 6.77 percent to $123.97 million from $132.98 million in the previous year period. Gross margin for the quarter contracted 514 basis points over the previous year period to 31.09 percent. Total expenses were 92.50 percent of quarterly revenues, up from 87.24 percent for the same period last year. That has resulted in a contraction of 526 basis points in operating margin to 7.50 percent.
Operating income for the quarter was $9.29 million, compared with $16.97 million in the previous year period.
Commenting on the Company's third quarter results, Randy Dearth, Calgon Carbon's chairman, president and chief executive officer said, "While our results reflect the anticipated decline in our mercury removal revenues and margins due to the expiration of a legacy contract, ongoing global softness in industrial end markets caused this sector's demand to lag our already dampened expectations.
Working capital increases marginally
Calgon Carbon Corporation has recorded an increase in the working capital over the last year. It stood at $229.03 million as at Sep. 30, 2016, up 3.47 percent or $7.67 million from $221.36 million on Sep. 30, 2015. Current ratio was at 4.20 as on Sep. 30, 2016, up from 3.70 on Sep. 30, 2015.
Days sales outstanding were almost stable at 68 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 62 days for the quarter compared with 117 days for the previous year period.
Debt remains almost stable
Total debt of Calgon Carbon Corporation remained almost stable for the quarter at $102.29 million, when compared with the last year period. Total debt was 15.87 percent of total assets as on Sep. 30, 2016, compared with 15.83 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.25 as on Sep. 30, 2016, when compared with the last year. Interest coverage ratio deteriorated to 17.27 for the quarter from 68.42 for the same period last year.
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