Revenue during the quarter dropped 3.80 percent to $478.80 million from $497.70 million in the previous year period. Gross margin for the quarter contracted 72 basis points over the previous year period to 28.01 percent. Total expenses were 83.58 percent of quarterly revenues, up from 83.14 percent for the same period last year. That has resulted in a contraction of 44 basis points in operating margin to 16.42 percent.

Operating income for the quarter was $78.60 million, compared with $83.90 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $113.90 million compared with $116.60 million in the prior year period. At the same time, adjusted EBITDA margin improved 36 basis points in the quarter to 23.79 percent from 23.43 percent in the last year period.

chairman, chief executive officer and president Nick Stanage commented, “Strong execution and good cost control led to solid results for the first quarter. Our adjusted diluted EPS of $0.60 was above last year’s $0.59, on a constant currency sales decrease of 2.6%. Although reductions in certain build rates and customer inventory adjustments lowered sales for the quarter, we are fully committed to meeting our adjusted diluted EPS guidance for the year as we continue to prepare for the production ramp up of new programs, led by Commercial Aerospace.”

The company has spent $95.50 million cash to meet investing activities during the quarter as against cash outgo of $94 million in the last year period.

Cash flow from financing activities was $87.80 million for the quarter, up 59.93 percent or $32.90 million, when compared with the last year period.

Cash and cash equivalents stood at $82.10 million as on Mar. 31, 2017, up 239.26 percent or $57.90 million from $24.20 million on Mar. 31, 2016.

Working capital decreases marginally
Hexcel Corporation has witnessed a decline in the working capital over the last year. It stood at $412 million as at Mar. 31, 2017, down 3.67 percent or $15.70 million from $427.70 million on Mar. 31, 2016. Current ratio was at 2.50 as on Mar. 31, 2017, down from 2.62 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 49 days for the quarter from 94 days for the last year period. Days sales outstanding went down to 47 days for the quarter compared with 50 days for the same period last year.

Days inventory outstanding has decreased to 40 days for the quarter compared with 82 days for the previous year period. At the same time, days payable outstanding was almost stable at 38 days for the quarter, when compared with the previous year period.