Ferroglobe PLC (GSM) saw its loss narrow to $6.55 million, or $0.04 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $25.70 million, or $0.15 a share. On the other hand, adjusted net loss for the quarter narrowed to $4.63 million, or $0.03 a share from a loss of $6.46 million or $0.04 a share, a year ago.
Revenue during the quarter dropped 6.57 percent to $388.24 million from $415.54 million in the previous year period. Gross margin for the quarter expanded 564 basis points over the previous year period to 37.91 percent. Operating margin for the quarter stood at negative 0.16 percent as compared to a negative 5.96 percent for the previous year period.
Operating loss for the quarter was $0.63 million, compared with an operating loss of $24.78 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $26.59 million compared with $29.66 million in the prior year period. At the same time, adjusted EBITDA margin contracted 29 basis points in the quarter to 6.85 percent from 7.14 percent in the last year period.
"Ferroglobe experienced an improved start to the year, achieving EBITDA almost four times greater than the prior quarter. Despite a decrease in our shipments, the significant margin improvement reflects solid demand across end markets and a continued improvement in the overall pricing environment," said chief executive officer Pedro Larrea. "We are confident in the actions we took during the market downturn over the few past quarters: we moved aggressively to manage our cost structure and actively identified markets and products that were experiencing an improved supply and demand environment. This, combined with our strong diversified portfolio, enabled us to capture the benefits of these improving trends. We are still in a recovery period from the bottom of the cycle, but are confident that we have passed the inflection point and optimistic about the remainder of 2017 and beyond. Moving forward, we will remain focused on improving our volumes and margins."
Operating cash flow drops significantly
Ferroglobe PLC has generated cash of $1.19 million from operating activities during the quarter, down 95.98 percent or $ 28.39 million, when compared with the last year period.
The company has spent $11.78 million cash to meet investing activities during the quarter as against cash outgo of $26.92 million in the last year period.
Cash flow from financing activities was $3.16 million for the quarter as against cash outgo of $7.17 million in the last year period.
Cash and cash equivalents stood at $193.03 million as on Mar. 31, 2017, up 69.30 percent or $79.01 million from $114.02 million on Mar. 31, 2016.
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