ITT Inc. (ITT) has reported a 22.99 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $46 million, or $0.52 a share in the quarter, compared with $37.40 million, or $0.41 a share for the same period last year.
Revenue during the quarter went up marginally by 2.74 percent to $625.80 million from $609.10 million in the previous year period. Gross margin for the quarter expanded 26 basis points over the previous year period to 32.33 percent. Total expenses were 91.12 percent of quarterly revenues, down from 91.63 percent for the same period last year. This has led to an improvement of 51 basis points in operating margin to 8.88 percent.
Operating income for the quarter was $55.60 million, compared with $51 million in the previous year period.
"ITT delivered a solid first quarter as we continued our intense focus on optimizing execution across the enterprise while advancing our essential long-term growth plans," said chief executive officer and president Denise Ramos. "We demonstrated our executional capability in accomplishments ranging from successfully leveraging the benefits of our structural reset at Industrial Process, to driving solid operational improvements at our connector facilities, to improving productivity and efficiency across the enterprise."
For fiscal year 2017, ITT Inc. expects diluted earnings per share to be in the range of $1.52 to $1.78. It expects diluted earnings per share to be in the range of $2.28 to $2.48 on adjusted basis for the same period.
Operating cash flow improves significantly
ITT Inc. has generated cash of $27.10 million from operating activities during the quarter, up 375.44 percent or $21.40 million, when compared with the last year period.
The company has spent $150.10 million cash to meet investing activities during the quarter as against cash outgo of $24.80 million in the last year period.
Cash flow from financing activities was $3.70 million for the quarter, down 78.11 percent or $13.20 million, when compared with the last year period.
Cash and cash equivalents stood at $348.50 million as on Mar. 31, 2017, down 19.12 percent or $82.40 million from $430.90 million on Mar. 31, 2016.
Working capital declines
ITT Inc. has witnessed a decline in the working capital over the last year. It stood at $493.10 million as at Mar. 31, 2017, down 19.45 percent or $119.10 million from $612.20 million on Mar. 31, 2016. Current ratio was at 1.56 as on Mar. 31, 2017, down from 1.64 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 50 days for the quarter from 87 days for the last year period. Days sales outstanding went down to 84 days for the quarter compared with 89 days for the same period last year.
Days inventory outstanding has decreased to 33 days for the quarter compared with 65 days for the previous year period. At the same time, days payable outstanding was almost stable at 67 days for the quarter, when compared with the previous year period.
Debt comes down
ITT Inc. has recorded a decline in total debt over the last one year. It stood at $213.10 million as on Mar. 31, 2017, down 22.57 percent or $62.10 million from $275.20 million on Mar. 31, 2016. Total debt was 5.81 percent of total assets as on Mar. 31, 2017, compared with 7.22 percent on Mar. 31, 2016. Debt to equity ratio was at 0.14 as on Mar. 31, 2017, down from 0.19 as on Mar. 31, 2016. Interest coverage ratio improved to 69.50 for the quarter from 30 for the same period last year.
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