Celanese Corporation (CE) has reported a 28.79 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $183 million, or $1.30 a share in the quarter, compared with $257 million, or $1.73 a share for the same period last year. On an adjusted basis, earnings per share were at $1.81 for the quarter compared with $1.83 in the same period last year.
Revenue during the quarter grew 4.77 percent to $1,471 million from $1,404 million in the previous year period. Gross margin for the quarter contracted 385 basis points over the previous year period to 23.93 percent. Total expenses were 86.95 percent of quarterly revenues, up from 79.56 percent for the same period last year. That has resulted in a contraction of 739 basis points in operating margin to 13.05 percent.
Operating income for the quarter was $192 million, compared with $287 million in the previous year period.
"This quarter's success reflects ongoing performance growth in our commercial models, growth in global markets, and our ability to identify and realize unique market opportunities," said Mark Rohr, chairman and chief executive officer. "Good cash flow in the first quarter supported our strong program of returning cash to shareholders. We repurchased 1.5 million shares and distributed $51 million in dividends, returning a total of $179 million cash."
Operating cash flow drops significantly
Celanese Corporation has generated cash of $192 million from operating activities during the quarter, down 33.10 percent or $ 95 million, when compared with the last year period.
The company has spent $64 million cash to meet investing activities during the quarter as against cash outgo of $75 million in the last year period.
The company has spent $270 million cash to carry out financing activities during the quarter as against cash outgo of $473 million in the last year period.
Cash and cash equivalents stood at $501 million as on Mar. 31, 2017, down 30.03 percent or $215 million from $716 million on Mar. 31, 2016.
Working capital decreases marginally
Celanese Corporation has witnessed a decline in the working capital over the last year. It stood at $1,374 million as at Mar. 31, 2017, down 2.41 percent or $34 million from $1,408 million on Mar. 31, 2016. Current ratio was at 2.35 as on Mar. 31, 2017, up from 2.29 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 45 days for the quarter from 74 days for the last year period. Days sales outstanding went down to 64 days for the quarter compared with 66 days for the same period last year.
Days inventory outstanding has decreased to 29 days for the quarter compared with 61 days for the previous year period. At the same time, days payable outstanding went down to 48 days for the quarter from 52 for the same period last year.
Debt moves up
Celanese Corporation has witnessed an increase in total debt over the last one year. It stood at $2,958 million as on Mar. 31, 2017, up 13.64 percent or $355 million from $2,603 million on Mar. 31, 2016. Total debt was 35.69 percent of total assets as on Mar. 31, 2017, compared with 31.02 percent on Mar. 31, 2016. Debt to equity ratio was at 0.97 as on Mar. 31, 2017, up from 0.84 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 6.62 for the quarter from 8.70 for the same period last year.
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