The cost of sales as a percentage of sales generally decreased from approximately -71.5% at the end of 2014 to a lower range near -65% during 2019 and early 2020. However, the metric increased again towards the end of 2021, nearing levels around -69%. This indicates an improvement in cost control over several years with some fluctuations and a slight reversal towards the latter periods.
Gross Profit Margin
Gross profit margin showed an overall improving trend from about 28.5% in late 2014 to peak near 34.7% around late 2019. This growth signifies enhanced operational efficiency or pricing power over this period. Despite some volatility, the margin remained robust above 29% through mid-2021.
Selling and Administrative Expenses
These expenses remained relatively stable as a percentage of sales, generally fluctuating between -8% and -10%. A mild downward trend can be observed towards 2019 and 2020, suggesting some operational leverage or cost optimization in selling and administrative functions.
Research and Development Expenses
Research and development expenses consistently accounted for a small percentage of sales, mostly between -0.6% and -1.5%. A slight decline is observable during 2015 to 2017, with occasional increases thereafter, indicating focused but limited R&D expenditure relative to sales.
Special Charges and Income Items
Several non-recurring items influenced results during the periods: facility closure costs appeared intermittently, notably at -1.3% and -0.93% during 2018 and 2020. Business separation costs were recorded mainly in 2015 and 2016. A significant goodwill and intangible asset impairment charge of -7.64% occurred in late 2016, impacting operating income metrics strongly during that quarter. Gains related to exchange with joint venture partners and headquarters relocation income were occasional positive contributors, visible mainly post-2019.
Operating Income
Operating income improved from around 16.8% in late 2014 to over 26% in 2019 and early 2020, reflecting stronger profitability and operational performance. However, a drop is noted near late 2016, linked to the impairment charge. Subsequent quarters show recovery and stability, maintaining operating margins mostly above 21% through mid-2021.
Equity Affiliates' Income
This income component was generally positive, ranging mostly between 1.3% and 3.9% of sales. Some irregular declines are seen, for example in mid-2017, but overall it contributed positively to income throughout the periods.
Interest Expense
Interest expense as a percentage of sales remained relatively stable around -1.1% to -1.6%, with a slight reduction seen during the COVID-19 period around early 2020. The company appeared to maintain consistent financing costs relative to sales volume.
Income Before Taxes and Taxes
Income from continuing operations before taxes generally increased over the observed period, from about 17.3% of sales in late 2014 to peaks above 27% by late 2019 and early 2020. Income tax provisions showed more variability, with some quarters exhibiting unusually high effective taxes, such as -13.16% in late 2017, but typically centered around -4% to -6% indicating fluctuating but generally manageable tax impact on earnings.
Net Income Patterns
Net income attributable to the company experienced substantial fluctuations. A notable decline and negative value emerged in early 2016, likely due to special items, with a dramatic rebound in early 2017 where net income rose above 100% of sales, driven possibly by one-time gains or adjustments. Subsequently, net income stabilized mostly between 15% and 22% of sales, showing resilient profitability despite occasional volatility from discontinued operations and other items.
Discontinued Operations
The net income from discontinued operations was generally minimal but sporadically significant, including a sharp spike to 92.2% in early 2017 and some negative impacts in 2016. These swings indicate occasional gains or losses from divestitures or discontinued segments influencing quarterly results.
Noncontrolling Interests
Net income attributable to noncontrolling interests remained a small negative fraction of sales throughout the periods, generally less than -0.7%, indicating a minor but consistent outflow to noncontrolling stakeholders.
