Crane Company (CR) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $64 million, or $ 1.09 a share in the quarter, against a net profit of $65.20 million, or $1.11 a share in the last year period.
Revenue during the quarter went up marginally by 0.12 percent to $681.40 million from $680.60 million in the previous year period. Operating margin for the quarter stood at negative 13.44 percent as compared to a positive 15.21 percent for the previous year period.
Operating loss for the quarter was $91.60 million, compared with an operating income of $103.50 million in the previous year period.
Max Mitchell, Crane Co. president and chief executive officer, stated: "We were pleased with our full year performance. Results exceeded our guidance and initial expectations entering 2016, and we were able to deliver adjusted EPS 3% above 2015 levels despite continued weakness in Fluid Handling end markets and a substantial impact from unfavorable foreign exchange. Adjusted operating margins increased 20 basis points compared to last year, driven primarily by very strong execution at Payment & Merchandising Technologies, and I am particularly proud that we delivered free cash flow of $267 million."
For financial year 2017, Crane Company expects revenue to be $2,700 million for fiscal year 2017. The company forecasts diluted earnings per share to be in the range of $4.30 to $4.55.
Operating cash flow improves significantly
Crane Company has generated cash of $318.10 million from operating activities during the year, up 38.73 percent or $88.80 million, when compared with the last year.
The company has spent $50.60 million cash to meet investing activities during the year as against cash outgo of $35.20 million in the last year. It has incurred net capital expenditure of $50.60 million on net basis during the year, up 43.75 percent or $15.40 million from year ago.
The company has spent $100.40 million cash to carry out financing activities during the year as against cash outgo of $143.80 million in the last year period.
Cash and cash equivalents stood at $509.70 million as on Dec. 31, 2016, up 40.22 percent or $146.20 million from $363.50 million on Dec. 31, 2015.
Working capital increases sharply
Crane Company has recorded an increase in the working capital over the last year. It stood at $794.90 million as at Dec. 31, 2016, up 26.03 percent or $164.20 million from $630.70 million on Dec. 31, 2015. Current ratio was at 2.53 as on Dec. 31, 2016, up from 2.10 on Dec. 31, 2015.
Days sales outstanding were almost stable at 28 days for the quarter, when compared with the last year period.
Debt comes down
Crane Company has recorded a decline in total debt over the last one year. It stood at $745.30 million as on Dec. 31, 2016, down 6.16 percent or $48.90 million from $794.20 million on Dec. 31, 2015. Total debt was 21.74 percent of total assets as on Dec. 31, 2016, compared with 23.77 percent on Dec. 31, 2015. Debt to equity ratio was at 0.65 as on Dec. 31, 2016, down from 0.69 as on Dec. 31, 2015.
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