Owens Corning (OC) has reported a 21.10 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $86 million, or $0.76 a share in the quarter, compared with $109 million, or $0.92 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $81 million, or $0.72 a share compared with $79 million or $0.66 a share, a year ago. Revenue during the quarter grew 6.63 percent to $1,383 million from $1,297 million in the previous year period. Gross margin for the quarter expanded 24 basis points over the previous year period to 23.07 percent. Total expenses were 90.17 percent of quarterly revenues, up from 89.36 percent for the same period last year. That has resulted in a contraction of 81 basis points in operating margin to 9.83 percent.
Operating income for the quarter was $136 million, compared with $138 million in the previous year period.
"Owens Corning had a great year. The company delivered revenue growth of six percent and achieved record levels of both adjusted EBIT and free cash flow," said chairman and chief executive officer Mike Thaman. "Our 2016 results reflect the continued improvements we have made to our portfolio of businesses. In 2017, we expect to sustain our momentum and deliver another year of strong performance."
Operating cash flow improves significantly
Owens Corning has generated cash of $943 million from operating activities during the year, up 27.09 percent or $201 million, when compared with the last year. The company has spent $815 million cash to meet investing activities during the year as against cash outgo of $369 million in the last year.
The company has spent $88 million cash to carry out financing activities during the year as against cash outgo of $333 million in the last year period.
Cash and cash equivalents stood at $112 million as on Dec. 31, 2016, up 16.67 percent or $16 million from $96 million on Dec. 31, 2015.
Debt moves up
Owens Corning has witnessed an increase in total debt over the last one year. It stood at $2,102 million as on Dec. 31, 2016, up 12.35 percent or $231 million from $1,871 million on Dec. 31, 2015. Total debt was 27.15 percent of total assets as on Dec. 31, 2016, compared with 25.35 percent on Dec. 31, 2015. Debt to equity ratio was at 0.54 as on Dec. 31, 2016, up from 0.50 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 4.86 for the quarter from 6.90 for the same period last year.
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