The Manitowoc Company, Inc (MTW) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $140 million, or $ 1.01 a share in the quarter, against a net profit of $4.80 million, or $0.04 a share in the last year period. On the other hand, adjusted net loss for the quarter widened to $38.10 million, or $0.28 a share from a loss of $29.80 million or $0.22 a share, a year ago.
Revenue during the quarter dropped 20.17 percent to $349.80 million from $438.20 million in the previous year period. Gross margin for the quarter contracted 409 basis points over the previous year period to 11.86 percent. Operating margin for the quarter stood at negative 38.16 percent as compared to a negative 1.87 percent for the previous year period.
Operating loss for the quarter was $133.50 million, compared with an operating loss of $8.20 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $31.50 million compared to operating loss of $7.70 million in prior year period.
“As previously announced, the mobile crane market continued its downward trend in the third-quarter and remains very challenging. The weak global oil and gas market, coupled with lower used equipment prices, continues to have a negative effect on demand. Our tower crane business continues to perform as expected and we look forward to its continued success as the new line of HUP products are introduced in the fourth-quarter,” commented Barry L. Pennypacker, president and chief executive officer of The Manitowoc Company, Inc.
Operating cash flow remains negative
The Manitowoc Company, Inc has spent $229.50 million cash to meet operating activities during the nine month period as against cash outgo of $73.90 million in the last year period.
The company has spent $4.40 million cash to meet investing activities during the nine month period as against cash outgo of $19.50 million in the last year period.
The company has spent $2,427.20 million cash to carry out financing activities during the nine month period as against cash inflow of $117.10 million in the last year period.
Cash and cash equivalents stood at $42.90 million as on Sep. 30, 2016, down 42.95 percent or $32.30 million from $75.20 million on Sep. 30, 2015.
Working capital increases marginally
The Manitowoc Company, Inc has recorded an increase in the working capital over the last year. It stood at $350.90 million as at Sep. 30, 2016, up 1.36 percent or $4.70 million from $346.20 million on Sep. 30, 2015. Current ratio was at 1.81 as on Sep. 30, 2016, up from 1.37 on Sep. 30, 2015.
Days sales outstanding went up to 58 days for the quarter compared with 54 days for the same period last year.
Days inventory outstanding has decreased to 74 days for the quarter compared with 183 days for the previous year period.
Debt comes down significantly
The Manitowoc Company, Inc has recorded a decline in total debt over the last one year. It stood at $308.30 million as on Sep. 30, 2016, down 81.18 percent or $1,330.20 million from $1,638.50 million on Sep. 30, 2015. Total debt was 19.28 percent of total assets as on Sep. 30, 2016, compared with 43.06 percent on Sep. 30, 2015. Debt to equity ratio was at 0.49 as on Sep. 30, 2016, down from 2.07 as on Sep. 30, 2015.
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