Hillenbrand, Inc. (HI) has reported an 8.50 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $21.70 million, or $0.34 a share in the quarter, compared with $20 million, or $0.31 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $27 million, or $0.42 a share compared with $26.40 million or $0.41 a share, a year ago.
Revenue during the quarter went up marginally by 1.25 percent to $356.10 million from $351.70 million in the previous year period. Gross margin for the quarter contracted 107 basis points over the previous year period to 35.38 percent. Total expenses were 89.89 percent of quarterly revenues, up from 89.68 percent for the same period last year. That has resulted in a contraction of 21 basis points in operating margin to 10.11 percent.
Operating income for the quarter was $36 million, compared with $36.30 million in the previous year period.
"We continued to experience positive momentum in our plastics business in the first quarter, which, along with the addition of Red Valve, helped us achieve modest growth in the quarter. We are pleased to see an increase in our backlog, and while still too early to make a call on end market recovery, recent stability is encouraging," said Joe Raver, president and chief executive officer of Hillenbrand. "We remain focused on executing our strategy through the Hillenbrand Operating Model as we continue to grow profitability and drive our business forward."
For fiscal year 2017, Hillenbrand, Inc. forecasts revenue to grow in the range of 1 percent to 3 percent. It expects diluted earnings per share to be in the range of $1.80 to $1.95. It expects diluted earnings per share to be in the range of $1.95 to $2.10 on adjusted basis for the same period.
Operating cash flow turns negative
Hillenbrand, Inc. has spent $48.70 million cash to meet operating activities during the quarter as against cash inflow of $35.70 million in the last year period.
The company has spent $4.50 million cash to meet investing activities during the quarter as against cash outgo of $112.10 million in the last year period.
Cash flow from financing activities was $49.50 million for the quarter, down 39.41 percent or $32.20 million, when compared with the last year period.
Cash and cash equivalents stood at $46.60 million as on Dec. 31, 2016, down 15.43 percent or $8.50 million from $55.10 million on Dec. 31, 2015.
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