Manitowoc Company (MTW) saw its loss narrow to $36 million, or $0.26 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $195.90 million, or $1.43 a share. On the other hand, adjusted net loss for the quarter widened to $24.20 million, or $0.17 a share from a loss of $7.60 million or $0.05 a share, a year ago.
Revenue during the quarter dropped 28.45 percent to $305.80 million from $427.40 million in the previous year period. Gross margin for the quarter contracted 168 basis points over the previous year period to 16.97 percent. Operating margin for the quarter stood at negative 7.75 percent as compared to a positive 0.19 percent for the previous year period.
Operating loss for the quarter was $23.70 million, compared with an operating income of $0.80 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $11.40 million compared to operating profit of $7.30 million in prior year period.
"In the first-quarter, we were pleased by the strong customer reception of our new products, many of which were highlighted at ConExpo. Nearly half of our equipment orders in the quarter were for products introduced since becoming a stand-alone crane company last year, which drove year-over-year and sequential orders up by 17% and 40%, respectively. Although the market has not shown signs of a sustained recovery, we are encouraged by the increased orders we booked in the quarter, and at this time reiterating our full-year financial guidance," commented Barry L. Pennypacker, president and chief executive officer of The Manitowoc Company, Inc.
Operating cash flow remains negative
Manitowoc CompanyInc has spent $32.50 million cash to meet operating activities during the quarter as against cash outgo of $210.20 million in the last year period.
The company has spent $1 million cash to meet investing activities during the quarter as against cash outgo of $12.10 million in the last year period. It has incurred net capital expenditure of $2.10 million on net basis during the quarter, down 78.35 percent or $7.60 million from year ago period.
The company has spent $0.80 million cash to carry out financing activities during the quarter as against cash inflow of $244.50 million in the last year period.
Cash and cash equivalents stood at $36.10 million as on Mar. 31, 2017, down 58.60 percent or $51.10 million from $87.20 million on Mar. 31, 2016.
Working capital declines
Manitowoc CompanyInc has witnessed a decline in the working capital over the last year. It stood at $307.80 million as at Mar. 31, 2017, down 17.35 percent or $64.60 million from $372.40 million on Mar. 31, 2016. Current ratio was at 1.72 as on Mar. 31, 2017, up from 1.71 on Mar. 31, 2016.
Days sales outstanding went up to 60 days for the quarter compared with 43 days for the same period last year.
Days inventory outstanding has decreased to 82 days for the quarter compared with 144 days for the previous year period.
Debt comes downManitowoc CompanyInc has recorded a decline in total debt over the last one year. It stood at $281.50 million as on Mar. 31, 2017, down 7.10 percent or $21.50 million from $303 million on Mar. 31, 2016. Total debt was 18.69 percent of total assets as on Mar. 31, 2017, compared with 16.64 percent on Mar. 31, 2016. Debt to equity ratio was at 0.49 as on Mar. 31, 2017, up from 0.39 as on Mar. 31, 2016.
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