Dow Chemical Company (DOW) has reported a 249.61 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $888 million, or $0.72 a share in the quarter, compared with $254 million, or $0.15 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $1,274 million, or $1.04 a share compared with $993 million or $0.89 a share, a year ago.
Revenue during the quarter grew 23.61 percent to $13,230 million from $10,703 million in the previous year period. Gross margin for the quarter contracted 279 basis points over the previous year period to 22.93 percent. Total expenses were 91.49 percent of quarterly revenues, down from 97.13 percent for the same period last year. This has led to an improvement of 564 basis points in operating margin to 8.51 percent.
Andrew Liveris, Dow’s chairman and chief executive officer, stated: "This quarter we delivered an all-time record in operating EBITDA. Our results underscore the strength of Dow’s portfolio and the levers we have in place to maintain agility in a rapidly changing business environment. Simply put, Dow’s business model - underpinned by our industry-leading integration and world-class innovation - showed once again its ability to deliver under all conditions.
Working capital decreases marginally
Dow Chemical Company has witnessed a decline in the working capital over the last year. It stood at $11,447 million as at Mar. 31, 2017, down 1.76 percent or $205 million from $11,652 million on Mar. 31, 2016. Current ratio was at 1.87 as on Mar. 31, 2017, down from 2 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 38 days for the quarter from 83 days for the last year period. Days sales outstanding went down to 60 days for the quarter compared with 71 days for the same period last year.
Days inventory outstanding has decreased to 36 days for the quarter compared with 81 days for the previous year period. At the same time, days payable outstanding went down to 58 days for the quarter from 68 for the same period last year.
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