Smith A O Corp (AOS) has reported 3.63 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $82.70 million, or $0.47 a share in the quarter, compared with $79.80 million, or $0.45 a share for the same period last year.
Revenue during the quarter grew 9.18 percent to $698.10 million from $639.40 million in the previous year period. Gross margin for the quarter expanded 41 basis points over the previous year period to 41.48 percent. Total expenses were 83.56 percent of quarterly revenues, up from 83.19 percent for the same period last year. That has resulted in a contraction of 37 basis points in operating margin to 16.44 percent.
Operating income for the quarter was $114.80 million, compared with $107.50 million in the previous year period.
"A. O. Smith had another excellent year, setting sales and earnings records thanks to continued healthy end markets for our consumer products in China and for boilers and commercial water heaters in the U.S.," Ajita G. Rajendra, chairman and chief executive officer, observed.
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1.98 to $2.08.
Operating cash flow improves significantlySmith A O Corporation has generated cash of $446.60 million from operating activities during the year, up 26.98 percent or $94.90 million, when compared with the last year. The company has spent $300.20 million cash to meet investing activities during the year as against cash outgo of $186.10 million in the last year.
The company has spent $139.60 million cash to carry out financing activities during the year as against cash outgo of $161.40 million in the last year period.
Cash and cash equivalents stood at $330.40 million as on Dec. 31, 2016, up 2.10 percent or $6.80 million from $323.60 million on Dec. 31, 2015.
Working capital remains almost stable
Smith A O Corporation has witnessed a decline in the working capital over the last year. It stood at $796.40 million as at Dec. 31, 2016, down 0.71 percent or $5.70 million from $802.10 million on Dec. 31, 2015. Current ratio was at 2.04 as on Dec. 31, 2016, down from 2.23 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 3 days for the quarter from 11 days for the last year period. Days sales outstanding went down to 34 days for the quarter compared with 36 days for the same period last year.
Days inventory outstanding has increased to 28 days for the quarter compared with 27 days for the previous year period. At the same time, days payable outstanding went up to 60 days for the quarter from 52 for the same period last year.
Debt increases substantiallySmith A O Corporation has witnessed an increase in total debt over the last one year. It stood at $323.60 million as on Dec. 31, 2016, up 29.96 percent or $74.60 million from $249 million on Dec. 31, 2015. Total debt was 11.19 percent of total assets as on Dec. 31, 2016, compared with 9.41 percent on Dec. 31, 2015. Debt to equity ratio was at 0.21 as on Dec. 31, 2016, up from 0.17 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 71.75 for the quarter from 76.79 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
