Hillenbrand Inc (HI) has reported a 27.97 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $33.40 million, or $0.52 a share in the quarter, compared with $26.10 million, or $0.41 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $34.40 million, or $0.53 a share compared with $31 million or $0.49 a share, a year ago. Revenue during the quarter went up marginally by 2.14 percent to $395.30 million from $387 million in the previous year period. Gross margin for the quarter expanded 72 basis points over the previous year period to 37.59 percent. Total expenses were 85.88 percent of quarterly revenues, down from 87.91 percent for the same period last year. This has led to an improvement of 202 basis points in operating margin to 14.12 percent.
Operating income for the quarter was $55.80 million, compared with $46.80 million in the previous year period.
“We delivered solid second quarter results with strong order volume, modest revenue growth and margin expansion. In addition to another strong quarter in our plastics business, we are starting to see some momentum in orders for equipment used to process proppants for hydraulic fracturing,” said Joe A. Raver, president and chief executive officer of Hillenbrand. “While we still see weak demand in some of the industrial markets we serve, we are encouraged by another quarter of top line growth and building backlog.”
Hillenbrand forecasts revenue to grow in the range of 1 percent to 3 percent for the fiscal year 2017. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $1.85 to $1.95. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $2 to $2.10 on adjusted basis.
Operating cash flow drops significantly
Hillenbrand Inc has generated cash of $19.80 million from operating activities during the first half, down 77.29 percent or $67.40 million, when compared with the last year period. The company has spent $7 million cash to meet investing activities during the first six months as against cash outgo of $245.20 million in the last year period.
The company has spent $12.80 million cash to carry out financing activities during the first six months as against cash inflow of $154.50 million in the last year period.
Cash and cash equivalents stood at $51.40 million as on Mar. 31, 2017, up 18.98 percent or $8.20 million from $43.20 million on Mar. 31, 2016.
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