Carpenter Technology Corporation (CRS) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $20.70 million, or $ 0.44 a share in the quarter, against a net loss of $23.90 million, or $0.51 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $20.70 million, or $0.44 a share compared with $14.30 million or $0.30 a share, a year ago.
Revenue during the quarter grew 3.79 percent to $473.60 million from $456.30 million in the previous year period. Gross margin for the quarter expanded 714 basis points over the previous year period to 17.55 percent. Operating margin for the quarter period stood at positive 7.56 percent as compared to a negative 5.33 percent for the previous year period.
Operating income for the quarter was $35.80 million, compared with an operating loss of $24.30 million in the previous year period.
"Our solid third quarter results reflect revenue growth across our diverse end-use market portfolio, strong commercial execution and the benefits of our ongoing implementation of the Carpenter Operating Model," said Tony Thene, Carpenter's president & chief executive officer. "Conditions across most of our markets have continued to improve, including in Aerospace where we are seeing increasing demand and are benefiting from our broad aerospace participation. While the recovery in oil and gas remains in the early stages, we are encouraged by the increase in North American rig counts and believe we are well positioned to drive growth and gain market share as activity levels increase further. These factors helped contribute to our Specialty Alloys Operations segment’s strongest operating margin percentage in almost three years."
Operating cash flow drops significantly Carpenter Technology Corp has generated cash of $35.50 million from operating activities during the nine month period, down 74.13 percent or $101.70 million, when compared with the last year period.
The company has spent $92.10 million cash to meet investing activities during the nine month period as against cash outgo of $55.50 million in the last year period.
The company has spent $10.20 million cash to carry out financing activities during the nine month period as against cash outgo of $128.60 million in the last year period.
Cash and cash equivalents stood at $16.60 million as on Mar. 31, 2017, down 29.06 percent or $6.80 million from $23.40 million on Mar. 31, 2016.
Working capital increases marginally
Carpenter Technology Corp has recorded an increase in the working capital over the last year. It stood at $729.20 million as at Mar. 31, 2017, up 4.02 percent or $28.20 million from $701 million on Mar. 31, 2016. Current ratio was at 3.26 as on Mar. 31, 2017, up from 3.22 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 95 days for the quarter from 170 days for the last year period. Days sales outstanding went down to 51 days for the quarter compared with 54 days for the same period last year.
Days inventory outstanding has decreased to 83 days for the quarter compared with 149 days for the previous year period. At the same time, days payable outstanding went up to 38 days for the quarter from 33 for the same period last year.
Debt comes down marginally Carpenter Technology Corp has recorded a decline in total debt over the last one year. It stood at $618.30 million as on Mar. 31, 2017, down 3.07 percent or $19.60 million from $637.90 million on Mar. 31, 2016. Total debt was 21.91 percent of total assets as on Mar. 31, 2017, compared with 22.89 percent on Mar. 31, 2016. Debt to equity ratio was almost stable at 0.53 as on Mar. 31, 2017, when compared with the 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
