Hexcel Corporation (HXL) has reported 10.39 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $59.50 million, or $0.64 a share in the quarter, compared with $53.90 million, or $0.56 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $59.50 million, or $0.64 a share compared with $53.90 million or $0.56 a share, a year ago.
Revenue during the quarter grew 4 percent to $483.50 million from $464.90 million in the previous year period. Gross margin for the quarter expanded 56 basis points over the previous year period to 28.05 percent. Total expenses were 82.01 percent of quarterly revenues, down from 82.53 percent for the same period last year. This has led to an improvement of 53 basis points in operating margin to 17.99 percent.
Operating income for the quarter was $87 million, compared with $81.20 million in the previous year period.
Chairman, chief executive officer and president Nick Stanage commented, "Hexcel delivered another solid quarter to end the year with record sales, operating income, net income and EPS. We are particularly pleased with our strong double-digit adjusted EPS growth as we generated $401 million of cash from operating activities in 2016, which funded our investments and capital expenditures for capacity expansion to support our organic growth."
For fiscal year 2017, Hexcel Corporation forecasts revenue to be in the range of $2,050 million to $2,150. The company expects diluted earnings per share to be in the range of $2.64 to $2.76 on adjusted basis.
Operating cash flow improves significantlyHexcel Corporation has generated cash of $401.40 million from operating activities during the year, up 33.36 percent or $100.40 million, when compared with the last year. The company has spent $366.50 million cash to meet investing activities during the year as against cash outgo of $305.30 million in the last year.
The company has spent $46.80 million cash to carry out financing activities during the year as against cash outgo of $10.90 million in the last year period.
Cash and cash equivalents stood at $35.20 million as on Dec. 31, 2016, down 32.05 percent or $16.60 million from $51.80 million on Dec. 31, 2015.
Working capital decreases marginally
Hexcel Corporation has witnessed a decline in the working capital over the last year. It stood at $335.10 million as at Dec. 31, 2016, down 1.79 percent or $6.10 million from $341.20 million on Dec. 31, 2015. Current ratio was at 2.23 as on Dec. 31, 2016, up from 2.17 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 44 days for the quarter from 45 days for the last year period. Days sales outstanding were almost stable at 23 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 38 days for the quarter compared with 42 days for the previous year period. At the same time, days payable outstanding went down to 18 days for the quarter from 20 for the same period last year.
Debt moves upHexcel Corporation has witnessed an increase in total debt over the last one year. It stood at $688.70 million as on Dec. 31, 2016, up 19.46 percent or $112.20 million from $576.50 million on Dec. 31, 2015. Short-term debt stood at $4.30 million as on Dec. 31, 2016. Total debt was 28.69 percent of total assets as on Dec. 31, 2016, compared with 26.36 percent on Dec. 31, 2015. Debt to equity ratio was at 0.55 as on Dec. 31, 2016, up from 0.49 as on Dec. 31, 2015. Interest coverage ratio improved to 16.42 for the quarter from 15.62 for the same period last year. 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
