Matson, Inc (MATX) has reported a 27.07 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $19.40 million, or $0.44 a share in the quarter, compared with $26.60 million, or $0.60 a share for the same period last year. Revenue during the quarter grew 4.95 percent to $519.30 million from $494.80 million in the previous year period. Total expenses were 93.01 percent of quarterly revenues, up from 90.72 percent for the same period last year. That has resulted in a contraction of 229 basis points in operating margin to 6.99 percent.
Operating income for the quarter was $36.30 million, compared with $45.90 million in the previous year period.
Matt Cox, Matson’s president and chief executive officer, commented, “Matson’s core businesses performed largely as expected in the fourth quarter; however, the quarter was negatively impacted by the increase in bunker fuel prices from mid-November through December. While our full year 2016 financial results failed to match the exceptional results achieved in 2015, when we benefitted from record rates in our expedited China service and volume gains in Hawaii as our primary competitor suffered operational difficulties, 2016 was a year in which we made critical investments for our future. We finalized our Hawaii fleet renewal program by ordering two new Kanaloa Class vessels and we expanded our Logistics platform into Alaska with the acquisition of Span Alaska. Both of these investments are expected to enhance our market leading positions and drive increased profitability and cash flow generation in the years ahead.”
Operating cash flow drops significantly Matson, Inc has generated cash of $157.80 million from operating activities during the year, down 35.67 percent or $87.50 million, when compared with the last year. The company has spent $320.70 million cash to meet investing activities during the year as against cash outgo of $63.80 million in the last year. It has incurred net capital expenditure of $176.90 million on net basis during the year, up 183.95 percent or $114.60 million from year ago.
Cash flow from financing activities was $151.30 million for the year as against cash outgo of $449.40 million in the last year period.
Cash and cash equivalents stood at $13.90 million as on Dec. 31, 2016, down 45.49 percent or $11.60 million from $25.50 million on Dec. 31, 2015.
Debt increases substantially Matson, Inc has witnessed an increase in total debt over the last one year. It stood at $738.90 million as on Dec. 31, 2016, up 71.88 percent or $309 million from $429.90 million on Dec. 31, 2015. Interest coverage ratio deteriorated to 5.42 for the quarter from 9.37 for the same period last year.
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