USG Corporation (USG) has reported a 17.91 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $55 million, or $0.37 a share in the quarter, compared with $67 million, or $0.46 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $55 million, or $0.37 a share compared with $56 million or $0.38 a share, a year ago. Revenue during the quarter went up marginally by 2.68 percent to $767 million from $747 million in the previous year period. Gross margin for the quarter contracted 285 basis points over the previous year period to 21.38 percent. Total expenses were 88.14 percent of quarterly revenues, up from 84.47 percent for the same period last year. That has resulted in a contraction of 366 basis points in operating margin to 11.86 percent.
Operating income for the quarter was $91 million, compared with $116 million in the previous year period.
However, the adjusted operating income for the quarter stood at $104 million compared to $120 million in the prior year period. At the same time, adjusted operating margin contracted 250 basis points in the quarter to 13.56 percent from 16.06 percent in the last year period.
"We had sound operational performance in the first quarter and we are seeing solid demand for our products," said Jennifer F. Scanlon, president and chief executive officer. "I am encouraged about our prospects for the balance of the year, despite the uptick we are seeing in commodity costs."
Operating cash flow remains stable
USG Corporation cash flow from operating activities was unchanged at negative $30 million in the quarter, when compared with the last year period. The company has spent $35 million cash to meet investing activities during the quarter as against cash outgo of $1 million in the last year period.
The company has spent $25 million cash to carry out financing activities during the quarter as against cash outgo of $65 million in the last year period.
Cash and cash equivalents stood at $341 million as on Mar. 31, 2017, down 1.73 percent or $6 million from $347 million on Mar. 31, 2016.
Working capital drops significantly
USG Corporation has witnessed a decline in the working capital over the last year. It stood at $84 million as at Mar. 31, 2017, down 81.78 percent or $377 million from $461 million on Mar. 31, 2016. Current ratio was at 1.10 as on Mar. 31, 2017, down from 1.51 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 20 days for the quarter from 61 days for the last year period. Days sales outstanding went down to 39 days for the quarter compared with 52 days for the same period last year.
Days inventory outstanding has decreased to 18 days for the quarter compared with 51 days for the previous year period. At the same time, days payable outstanding went down to 37 days for the quarter from 42 for the same period last year.
Debt comes down significantly
USG Corporation has recorded a decline in total debt over the last one year. It stood at $1,084 million as on Mar. 31, 2017, down 48.72 percent or $1,030 million from $2,114 million on Mar. 31, 2016. Total debt was 27.71 percent of total assets as on Mar. 31, 2017, compared with 45.35 percent on Mar. 31, 2016. Debt to equity ratio was at 0.55 as on Mar. 31, 2017, down from 1.39 as on Mar. 31, 2016. Interest coverage ratio improved to 4.55 for the quarter from 2.90 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
