Curtiss-Wright Corporation (CW) has reported 35.56 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $45.93 million, or $1.02 a share in the quarter, compared with $33.88 million, or $0.71 a share for the same period last year. Revenue during the quarter dropped 3.51 percent to $507.09 million from $525.54 million in the previous year period. Gross margin for the quarter expanded 108 basis points over the previous year period to 36.38 percent. Total expenses were 84.90 percent of quarterly revenues, down from 87.86 percent for the same period last year. This has led to an improvement of 296 basis points in operating margin to 15.10 percent.
Operating income for the quarter was $76.57 million, compared with $63.81 million in the previous year period.
“Our third quarter results were ahead of our expectations, led by strong margin improvement within the Defense and Power segments,” said David C. Adams, Chairman and Chief executive officer of Curtiss-Wright Corporation. “This performance was primarily driven by increased profitability on our embedded computing products serving the defense markets, as well as higher margins on the AP1000 program, as we continue to support new nuclear power plant construction in the U.S. and China. Further, Curtiss-Wright’s commitment to ongoing margin improvement initiatives is driving increased profitability and generating significant value for our shareholders, as we continue to mitigate challenging conditions in the nuclear aftermarket and general industrial end markets.”
Curtiss-Wright Corporation forecasts revenue to be in the range of $2,110 million to $2,160 million for fiscal year 2016. For financial year 2016, the company forecasts operating income to be in the range of $301 million to $313 million. For fiscal year 2016, the company expects diluted earnings per share to be in the range of $4 to $4.15.
Working capital increases
Curtiss-Wright Corporation has recorded an increase in the working capital over the last year. It stood at $875.12 million as at Sep. 30, 2016, up 8.30 percent or $67.09 million from $808.03 million on Sep. 30, 2015. Current ratio was at 2.79 as on Sep. 30, 2016, up from 2.76 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 115 days for the quarter from 172 days for the last year period. Days sales outstanding went down to 96 days for the quarter compared with 100 days for the same period last year.
Days inventory outstanding has decreased to 57 days for the quarter compared with 109 days for the previous year period. At the same time, days payable outstanding went up to 39 days for the quarter from 36 for the same period last year.
Debt remains almost stable
Curtiss-Wright Corporation has witnessed an increase in total debt over the last one year. It stood at $966.84 million as on Sep. 30, 2016, up 0.83 percent or $7.94 million from $958.90 million on Sep. 30, 2015. Total debt was 32.08 percent of total assets as on Sep. 30, 2016, compared with 31.81 percent on Sep. 30, 2015. Debt to equity ratio was at 0.75 as on Sep. 30, 2016, up from 0.73 as on Sep. 30, 2015. Interest coverage ratio improved to 7.30 for the quarter from 7.11 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
