Curtiss-Wright Corporation (CW) has reported 0.83 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $32.55 million, or $0.73 a share in the quarter, compared with $32.82 million, or $0.73 a share for the same period last year. Revenue during the quarter grew 3.99 percent to $523.59 million from $503.51 million in the previous year period. Gross margin for the quarter contracted 153 basis points over the previous year period to 32.62 percent. Total expenses were 90.22 percent of quarterly revenues, up from 88.63 percent for the same period last year. That has resulted in a contraction of 159 basis points in operating margin to 9.78 percent.
Operating income for the quarter was $51.23 million, compared with $57.26 million in the previous year period.
“Our first quarter results were ahead of our expectations as solid 4% top-line growth drove a stronger EPS performance than anticipated,” said David C. Adams, Chairman and Chief executive officer of Curtiss-Wright Corporation. “While our overall profitability was negatively impacted by the first-year purchase accounting costs associated with our recent acquisition of Teletronics Technology Corporation (TTC), we achieved higher organic sales and operating income growth in each of our segments in the first quarter.”
For fiscal year 2017, Curtiss-Wright Corporation projects revenue to be in the range of $2,170 million to $2,210 million and the company projects operating income to be in the range of $316 million to $325 millionand its diluted earnings per share to be in the range of $4.40 to $4.50.
Working capital drops significantly
Curtiss-Wright Corporation has witnessed a decline in the working capital over the last year. It stood at $565.29 million as at Mar. 31, 2017, down 29.60 percent or $237.73 million from $803.02 million on Mar. 31, 2016. Current ratio was at 1.90 as on Mar. 31, 2017, down from 2.76 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 101 days for the quarter from 161 days for the last year period. Days sales outstanding went down to 90 days for the quarter compared with 95 days for the same period last year.
Days inventory outstanding has decreased to 50 days for the quarter compared with 107 days for the previous year period. At the same time, days payable outstanding went down to 39 days for the quarter from 41 for the same period last year.
Debt remains almost stable
Total debt of Curtiss-Wright Corporation remained almost stable for the quarter at $965.80 million, when compared with the last year period. Total debt was 32 percent of total assets as on Mar. 31, 2017, compared with 32.65 percent on Mar. 31, 2016. Debt to equity ratio was at 0.73 as on Mar. 31, 2017, down from 0.75 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 4.94 for the quarter from 5.76 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
