Revenue during the quarter went up marginally by 1.05 percent to $491 million from $485.90 million in the previous year period. Gross margin for the quarter expanded 60 basis points over the previous year period to 35.44 percent. Total expenses were 89.31 percent of quarterly revenues, up from 88.58 percent for the same period last year. That has resulted in a contraction of 73 basis points in operating margin to 10.69 percent.

Operating income for the quarter was $52.50 million, compared with $55.50 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $90.30 million compared with $93.10 million in the prior year period. At the same time, adjusted EBITDA margin contracted 77 basis points in the quarter to 18.39 percent from 19.16 percent in the last year period.

Todd Adams, president and chief executive officer, commented, "Our second quarter operating results were broadly in line with our expectations, despite the modestly weaker than expected overall sales level. While the demand environment remains challenging, our focus to deliver greater value to our customers and earn more of their business is having a positive impact. We are encouraged by the positive trajectory of year over year core growth comparisons in our industrial and aerospace end markets, and we are bringing significant new products to market that we believe can accelerate our sustainable growth over time. Our supply chain optimization and footprint repositioning initiatives remain firmly on track to deliver $30 million of annualized cost savings, although we are adding 60 days to our timeline in order to achieve successful execution and realization of benefits from this critical series of projects."

For the third-quarter 2017, Rexnord Corporation expects revenue to be in the range of $453 million to $463 million. The company projects diluted earnings per share to be in the range of $0.12 to $0.15. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.23 to $0.26. 

For financial year 2017, Rexnord Corporation projects diluted earnings per share to be in the range of $0.75 to $0.81. The company projects diluted earnings per share to be in the range of $1.32 to $1.38 on adjusted basis.

The company has spent $240.70 million cash to meet investing activities during the first six months as against cash outgo of $11.60 million in the last year period. It has incurred net capital expenditure of $27 million on net basis during the first six months, up 112.60 percent or $14.30 million from year ago period.

The company has spent $93.80 million cash to carry out financing activities during the first six months as against cash outgo of $48.60 million in the last year period.

Cash and cash equivalents stood at $208.50 million as on Sep. 30, 2016, down 44.36 percent or $166.20 million from $374.70 million on Sep. 30, 2015.

Working capital declines
Rexnord Corporation has witnessed a decline in the working capital over the last year. It stood at $561.90 million as at Sep. 30, 2016, down 21.42 percent or $153.20 million from $715.10 million on Sep. 30, 2015. Current ratio was at 2.51 as on Sep. 30, 2016, down from 2.86 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 56 days for the quarter from 112 days for the last year period. Days sales outstanding were almost stable at 60 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 52 days for the quarter compared with 108 days for the previous year period. At the same time, days payable outstanding was almost stable at 55 days for the quarter, when compared with the previous year period.