Hillenbrand, Inc (HI) has reported an 88.48 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $36 million, or $0.56 a share in the quarter, compared with $19.10 million, or $0.30 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $37 million, or $0.58 a share compared with $35.40 million or $0.55 a share, a year ago. Revenue during the quarter grew 9.36 percent to $428.70 million from $392 million in the previous year period. Gross margin for the quarter contracted 43 basis points over the previous year period to 36.44 percent. Total expenses were 86.26 percent of quarterly revenues, down from 90.66 percent for the same period last year. This has led to an improvement of 440 basis points in operating margin to 13.74 percent.
Operating income for the quarter was $58.90 million, compared with $36.60 million in the previous year period.
"The Process Equipment Group closed out the year with solid fourth quarter results compared to last year with a strong increase in orders, despite the persistent headwinds in several of our end markets. Our Batesville business was ranked number one for the third consecutive year in the Funeral Service Insider’s annual survey of funeral professionals for quality, service, and innovation. And, thanks to everyone’s efforts, we were able to generate strong cash flow for Hillenbrand this year," commented Joe Raver, president and chief executive officer of Hillenbrand. "Our team performed well this year despite challenging market conditions. We had to make some difficult decisions and took significant actions to overcome persistent market challenges, drive margin improvement, and position ourselves for increased profitability when demand returns. We will continue to utilize the Hillenbrand Operating Model to identify and implement initiatives to proactively protect our profitability while pursuing growth as we move into 2017."
For fiscal year 2017, Hillenbrand, Inc expects diluted earnings per share to be in the range of $1.80 to $1.95. The company expects diluted earnings per share to be in the range of $1.95 to $2.10 on adjusted basis.
Operating cash flow improves significantly
Hillenbrand, Inc has generated cash of $238.20 million from operating activities during the year, up 126.86 percent or $133.20 million, when compared with the last year. The company has spent $253.50 million cash to meet investing activities during the year as against cash outgo of $29.50 million in the last year.
Cash flow from financing activities was $21.60 million for the year as against cash outgo of $83.20 million in the last year period.
Cash and cash equivalents stood at $52 million as on Sep. 30, 2016, up 7.66 percent or $3.70 million from $48.30 million on Sep. 30, 2015.
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