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General Cable Corporation (BGC) saw its loss widen to $104.60 million, or $2.10 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $47.90 million, or $0.98 a share. On an adjusted basis, profit per share for the quarter was stable at $0.05, when compared with the last year period. Revenue during the quarter dropped 4.50 percent to $910 million from $952.90 million in the previous year period. Gross margin for the quarter expanded 133 basis points over the previous year period to 8.14 percent. Operating margin for the quarter stood at negative 10.64 percent as compared to a negative 3.89 percent for the previous year period.
Operating loss for the quarter was $96.80 million, compared with an operating loss of $37.10 million in the previous year period.
However, the adjusted operating income for the quarter stood at $27.30 million compared to $28.20 million in the prior year period. At the same time, adjusted operating margin improved 4 basis points in the quarter to 3 percent from 2.96 percent in the last year period.
Michael T. McDonnell, president and chief executive officer, said, “In 2016 we achieved significant progress in the execution of our strategic roadmap designed to transform the Company into a more focused, efficient and innovative organization, including the strengthening of the General Cable global management team. We are especially pleased with what we have accomplished in North America, which has been a primary focus of the roadmap during the first year of our three year plan. In 2017, we expect to complete most of the North American initiatives and make substantial progress in Europe and Latin America. Fourth quarter results were at the low end of our expectations as stronger than expected results in North America driven by demand for construction and electric utility products were more than offset by a continued weak economic environment in Latin America and a delayed implementation of a restructuring project in Europe. We also delivered significant operating cash flow in the fourth quarter of $89 million through timely customer collections and continued tight management of inventory levels. We maintain a positive outlook for 2017 and are encouraged by our performance and continued execution as we head into the year.”
For the first-quarter, General Cable Corp projects revenue to be in the range of $850 million to $900 million. The company projects operating income to be in the range of $15 million to $30 million for the first-quarter. The company projects adjusted operating income to be in the range of $25 million to $40 million for the first-quarter. General Cable Corp forecasts diluted loss per share to be in the range of negative $0.05 to $0.10 for the first-quarter. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.05 to $0.20 for the first-quarter.
Working capital declines
General Cable Corporation has witnessed a decline in the working capital over the last year. It stood at $698.10 million as at Dec. 31, 2016, down 11.92 percent or $94.50 million from $792.60 million on Dec. 31, 2015. Current ratio was at 1.77 as on Dec. 31, 2016, down from 1.83 on Dec. 31, 2015.
Debt comes down
General Cable Corporation has recorded a decline in total debt over the last one year. It stood at $938.60 million as on Dec. 31, 2016, down 13.07 percent or $141.10 million from $1,079.70 million on Dec. 31, 2015. Total debt was 41.87 percent of total assets as on Dec. 31, 2016, compared with 43.77 percent on Dec. 31, 2015. Debt to equity ratio was at 5.56 as on Dec. 31, 2016, up from 4.45 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
