Crown Holdings, Inc. (CCK) has reported an 1.52 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $65 million, or $0.47 a share in the quarter, compared with $66 million, or $0.47 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $99 million, or $0.71 a share compared with $97 million or $0.70 a share, a year ago. Revenue during the quarter dropped 5.13 percent to $1,923 million from $2,027 million in the previous year period. Gross margin for the quarter expanded 65 basis points over the previous year period to 20.28 percent. Total expenses were 90.02 percent of quarterly revenues, down from 90.08 percent for the same period last year. This has led to an improvement of 7 basis points in operating margin to 9.98 percent.
Operating income for the quarter was $192 million, compared with $201 million in the previous year period.
Commenting on the quarter, Timothy J. Donahue, president and chief executive officer, stated, "We are pleased to report another solid quarter and strong year for Crown. Fourth quarter operating results were in line with our expectations, and we exceeded our free cash flow projections due to another quarter of excellent working capital performance. Global beverage can volumes increased three percent for the full year, and in the quarter were level to the prior year as strong performances in the U.S., Brazil and Asia offset softness in Saudi Arabia."
For fiscal year 2017, Crown Holdings, Inc. expects diluted earnings per share to be in the range of $3.80 to $4 on adjusted basis.
For the first-quarter, On an adjusted basis, Crown Holdings, Inc. expects diluted earnings per share to be in the range of $0.65 to $0.75.
Operating cash flow falls marginally
Crown Holdings, Inc. has generated cash of $930 million from operating activities during the year, down 2.72 percent or $26 million, when compared with the last year. The company has spent $442 million cash to meet investing activities during the year as against cash outgo of $1,548 million in the last year.
The company has spent $616 million cash to carry out financing activities during the year as against cash inflow of $406 million in the last year period.
Cash and cash equivalents stood at $559 million as on Dec. 31, 2016, down 22.04 percent or $158 million from $717 million on Dec. 31, 2015.
Working capital turns negative
Working capital of Crown Holdings, Inc. has turned negative to $55 million on Dec. 31, 2016 from positive $141 million on Dec. 31, 2015. Current ratio was at 0.98 as on Dec. 31, 2016, down from 1.05 on Dec. 31, 2015.
Days sales outstanding were almost stable at 21 days for the quarter, when compared with the last year period.
Days inventory outstanding has increased to 37 days for the quarter compared with 34 days for the previous year period.
Debt comes down
Crown Holdings, Inc. has recorded a decline in total debt over the last one year. It stood at $4,911 million as on Dec. 31, 2016, down 11 percent or $607 million from $5,518 million on Dec. 31, 2015. Total debt was 51.16 percent of total assets as on Dec. 31, 2016, compared with 55.07 percent on Dec. 31, 2015. Debt to equity ratio was at 7.35 as on Dec. 31, 2016, down from 12.69 as on Dec. 31, 2015. Interest coverage ratio improved to 3.10 for the quarter from 2.96 for the same period 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
