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Firstenergy Corporation (FE) saw its loss widen to $5,796 million, or $13.44 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $226 million, or $0.53 a share. On the other hand, adjusted net income for the quarter stood at $163 million, or $0.38 a share compared with $244 million or $0.58 a share, a year ago. Revenue during the quarter dropped 4.69 percent to $3,375 million from $3,541 million in the previous year period. Gross margin for the quarter expanded 582 basis points over the previous year period to 63.91 percent.
Operating loss for the quarter was $8,924 million, compared with an operating income of $236 million in the previous year period.
However, the adjusted operating income for the quarter stood at $476 million compared to $585 million in the prior year period. At the same time, adjusted operating margin contracted 242 basis points in the quarter to 14.10 percent from 16.52 percent in the last year period.
On January 17, 2017, FE announced that Steven J. Demetriou and James F. O'Neil III were elected to the company's Board of Directors. Demetriou, 58, is chairman and chief executive officer of Dallas-based Jacobs Engineering Group, Inc., a provider of technical professional and construction services. Mr. Demetriou has more than 30 years of leadership experience, including 15 years in the role of chief executive officer at various companies. Mr. O'Neil, 58, is a partner at Western Commerce Group, an advisory and investment firm based in Fort Worth, Texas. Prior to joining Western Commerce Group, Mr. O'Neil was president, chief executive officer and a director of Quanta Services Inc., a provider of contracting services primarily to the electric power and oil and gas industries, from 2011 until 2016.
For first-quarter of 2017, Firstenergy Corporation forecasts net income to be in the range of $285 million to $330 million and its basic earnings per share to be in the range of $0.64 to $0.74 and adjusted basic earnings per share to be in the range of $0.64 to $0.74.
For fiscal year 2017, Firstenergy Corp forecasts net income to be in the range of $1,100 million to $1,235 million ad its basic earnings per share to be in the range of $2.47 to $2.77 and adjusted basic earnings per share to be in the range of $2.47 to $2.77.
Operating cash flow falls marginally
Firstenergy Corporation has generated cash of $3,371 million from operating activities during the year, down 2.20 percent or $76 million, when compared with the last year. The company has spent $3,281 million cash to meet investing activities during the year as against cash outgo of $3,122 million in the last year.
The company has spent $22 million cash to carry out financing activities during the year as against cash outgo of $279 million in the last year period.
Cash and cash equivalents stood at $199 million as on Dec. 31, 2016, up 51.91 percent or $68 million from $131 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Firstenergy Corporation was negative $4,176 million on Dec. 31, 2016 compared with negative $2,562 million on Dec. 31, 2015. Current ratio was at 0.41 as on Dec. 31, 2016, down from 0.54 on Dec. 31, 2015.
Days sales outstanding went up to 22 days for the quarter compared with 21 days for the same period last year.
At the same time, days payable outstanding went up to 39 days for the quarter from 33 for the same period last year.
Debt moves up marginally
Firstenergy Corporation has witnessed an increase in total debt over the last one year. It stood at $22,552 million as on Dec. 31, 2016, up 2.64 percent or $579 million from $21,973 million on Dec. 31, 2015. Total debt was 52.27 percent of total assets as on Dec. 31, 2016, compared with 42.10 percent on Dec. 31, 2015. Debt to equity ratio was at 3.61 as on Dec. 31, 2016, up from 1.77 as on Dec. 31, 2015. 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
