PolyOne Corporation (POL) has reported a 990.32 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $33.80 million, or $0.40 a share in the quarter, compared with $3.10 million, or $0.04 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $31.60 million, or $0.38 a share compared with $33.50 million or $0.39 a share, a year ago. Revenue during the quarter went up marginally by 1.53 percent to $787.70 million from $775.80 million in the previous year period. Gross margin for the quarter contracted 51 basis points over the previous year period to 19.72 percent. Total expenses were 92.65 percent of quarterly revenues, down from 95.97 percent for the same period last year. This has led to an improvement of 332 basis points in operating margin to 7.35 percent.
Operating income for the quarter was $57.90 million, compared with $31.30 million in the previous year period.
However, the adjusted operating income for the quarter stood at $57 million compared to $62.70 million in the prior year period. At the same time, adjusted operating margin contracted 85 basis points in the quarter to 7.24 percent from 8.08 percent in the last year period.
"I’m pleased we delivered our 7th consecutive year of adjusted earnings per share expansion," said Robert M. Patterson, chairman, president, and chief executive officer, PolyOne Corporation. "Our Specialty Engineered Materials, Performance Products & Solutions (PP&S) and Distribution (POD) segments all delivered record operating income, helping us to overcome a number of macro-economic challenges and weaker performance in Designed Structures & Solutions (DSS)."
Operating cash flow falls marginally
PolyOne Corporation has generated cash of $221.30 million from operating activities during the year, down 2.60 percent or $5.90 million, when compared with the last year. The company has spent $235.40 million cash to meet investing activities during the year as against cash outgo of $106.50 million in the last year.
The company has spent $34 million cash to carry out financing activities during the year as against cash outgo of $70.40 million in the last year period.
Cash and cash equivalents stood at $226.70 million as on Dec. 31, 2016, down 18.98 percent or $53.10 million from $279.80 million on Dec. 31, 2015.
Working capital decreases marginally
PolyOne Corporation has witnessed a decline in the working capital over the last year. It stood at $439.90 million as at Dec. 31, 2016, down 4.93 percent or $22.80 million from $462.70 million on Dec. 31, 2015. Current ratio was at 1.86 as on Dec. 31, 2016, down from 1.93 on Dec. 31, 2015.
Debt moves up
PolyOne Corporation has witnessed an increase in total debt over the last one year. It stood at $1,258.30 million as on Dec. 31, 2016, up 9.74 percent or $111.70 million from $1,146.60 million on Dec. 31, 2015. Total debt was 46.20 percent of total assets as on Dec. 31, 2016, compared with 44.18 percent on Dec. 31, 2015. Debt to equity ratio was at 1.73 as on Dec. 31, 2016, up from 1.63 as on Dec. 31, 2015. Interest coverage ratio improved to 3.74 for the quarter from 2.01 for the same period last year.
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