TOR Minerals International (TORM) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $0.29 million in the quarter, against a net loss of $0.12 million in the last year period. Revenue during the quarter grew 11.66 percent to $10.04 million from $8.99 million in the previous year period. Gross margin for the quarter expanded 342 basis points over the previous year period to 15.78 percent. Total expenses were 95.46 percent of quarterly revenues, down from 99.04 percent for the same period last year. This has led to an improvement of 359 basis points in operating margin to 4.54 percent.
Operating income for the quarter was $0.46 million, compared with $0.09 million in the previous year period.
“Strong performance in our Alumina business more than made up for continued weakness in TiO2 market conditions, putting total revenue back on a growth trajectory for the year. In addition, incremental contribution from our alumina business, as well as strategic initiatives to improve efficiencies of our TiO2 business, have resulted in significant improvements in profitability,” said Dr. Olaf Karasch, Chief Executive Officer. “While our strategies must continuously focus on lowering cost position, due to the successful growth our specialty alumina and barium sulfate businesses, along with what appears to be weak, but stabilizing conditions in the TiO2 market, we are now increasing focus on top line growth. We are expanding sales, marketing and distribution efforts to drive sales growth in the coming quarters, as well as investing in research and development to introduce new specialty mineral products that can provide long-term growth for our business.”
Operating cash flow declines
TOR Minerals International has generated cash of $3.06 million from operating activities during the nine month period, down 17.59 percent or $0.65 million, when compared with the last year period. The company has spent $0.89 million cash to meet investing activities during the nine month period as against cash outgo of $5.74 million in the last year period.
Cash flow from financing activities was $0.10 million for the nine month period, down 94.74 percent or $1.80 million, when compared with the last year period.
Cash and cash equivalents stood at $3.08 million as on Sep. 30, 2016, up 47.61 percent or $0.99 million from $2.09 million on Sep. 30, 2015.
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