Woodward, Inc. (WWD) has reported a 6.66 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $38.10 million, or $0.60 a share in the quarter, compared with $40.82 million, or $0.65 a share for the same period last year.

Revenue during the quarter grew 4.38 percent to $500.38 million from $479.38 million in the previous year period. Gross margin for the quarter contracted 77 basis points over the previous year period to 27.02 percent. Total expenses were 88.96 percent of quarterly revenues, up from 87.96 percent for the same period last year. That has resulted in a contraction of 100 basis points in operating margin to 11.04 percent.

Operating income for the quarter was $55.24 million, compared with $57.73 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $76.65 million compared with $75.72 million in the prior year period. At the same time, adjusted EBITDA margin contracted 48 basis points in the quarter to 15.32 percent from 15.79 percent in the last year period.

"Our Aerospace segment performance was strong this quarter and we are beginning to reap the benefits from strategic investments to increase market share on next generation aircraft programs," said Thomas A. Gendron, chairman and chief executive officer. "While certain areas of the Industrial segment are showing signs of recovery, we are still experiencing challenges. Overall, we remain well-positioned to achieve our fiscal year expectations."

For financial year 2017, Woodward, Inc. expects revenue to grow in the range of 4 percent to 6 percent. The company projects diluted earnings per share to be in the range of $2.95 to $3.25.

The company has spent $34.38 million cash to meet investing activities during the first six months as against cash outgo of $97.20 million in the last year period. It has incurred net capital expenditure of $39.37 million on net basis during the first six months, down 59.50 percent or $57.83 million from year ago period.

The company has spent $87.58 million cash to carry out financing activities during the first six months as against cash outgo of $261.29 million in the last year period.

Cash and cash equivalents stood at $78.95 million as on Mar. 31, 2017, down 6.83 percent or $5.79 million from $84.74 million on Mar. 31, 2016.

Working capital increases

Woodward, Inc. has recorded an increase in the working capital over the last year. It stood at $489.47 million as at Mar. 31, 2017, up 18.52 percent or $76.50 million from $412.97 million on Mar. 31, 2016. Current ratio was at 2.16 as on Mar. 31, 2017, up from 1.86 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 72 days for the quarter from 134 days for the last year period. Days sales outstanding went down to 52 days for the quarter compared with 53 days for the same period last year.

Days inventory outstanding has decreased to 62 days for the quarter compared with 127 days for the previous year period. At the same time, days payable outstanding went down to 42 days for the quarter from 45 for the same period last year.