Revenue during the quarter dropped 11.76 percent to $588.40 million from $666.80 million in the previous year period. Gross margin for the quarter contracted 72 basis points over the previous year period to 29.47 percent. Total expenses were 95.99 percent of quarterly revenues, up from 91.93 percent for the same period last year. That has resulted in a contraction of 406 basis points in operating margin to 4.01 percent.

Operating income for the quarter was $23.60 million, compared with $53.80 million in the previous year period.

However, the adjusted operating income for the quarter stood at $58 million compared to $71.60 million in the prior year period. At the same time, adjusted operating margin contracted 88 basis points in the quarter to 9.86 percent from 10.74 percent in the last year period.

“While we continued to face a difficult external environment across several of our key markets during 2016, we maintained our collective focus on addressing those challenges while advancing our essential long-term growth plans,” said ITT chief executive officer and president Denise Ramos. “Throughout 2016, we proactively restructured our operations, drove cost controls and improved productivity and efficiency, which helped us mitigate some of the unfavorable impact from our markets. At the same time, we drove a number of strategic actions that will position us well for long-term value creation.

For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1.45 to $1.75. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $2.18 to $2.48 on adjusted basis.

The company has spent $54.40 million cash to meet investing activities during the year as against cash outgo of $485.50 million in the last year.

The company has spent $141.90 million cash to carry out financing activities during the year as against cash inflow of $120.40 million in the last year period.

Cash and cash equivalents stood at $460.70 million as on Dec. 31, 2016, up 10.83 percent or $45 million from $415.70 million on Dec. 31, 2015.

Working capital decreases marginally
ITT Inc has witnessed a decline in the working capital over the last year. It stood at $535.60 million as at Dec. 31, 2016, down 1.65 percent or $9 million from $544.60 million on Dec. 31, 2015. Current ratio was at 1.62 as on Dec. 31, 2016, up from 1.57 on Dec. 31, 2015.

Cash conversion cycle (CCC) has increased to 40 days for the quarter from 38 days for the last year period. Days sales outstanding were almost stable at 41 days for the quarter, when compared with the last year period.

Days inventory outstanding has increased to 33 days for the quarter compared with 29 days for the previous year period. At the same time, days payable outstanding went up to 33 days for the quarter from 31 for the same period last year.