Our guest author, economist John Gault, recently discussed
“Stepping back: where the Global Economic Crisis is headed”
at a Geneva Conference about “Cross-border and offshore banking”.
You can find this very interesting article now on our in-depth analysis web site.
Enjoy!
So the stock is up but how do the numbers look like?
What could one expect given the current economic environment?
Colfax posted net income of $4.4 mil (0.10 $ /share basic and diluted) in Q2 2009
Adjusted net income (which backs out restructuring charges and asbestos related costs) was $8.5 mil ($ 0.20 / share), a decrease of 38.8%. This includes a negative currency effect of 4 cts/share.
Net sales were $ 129.2 mil, a decrease of 20% year over year.
Only in the segment „Global Navy and Commercial Marine End Markets” sales were up.
Orders in the second quarter were $ 104.1 mil, a decrease of 44.9%
Brutal numbers indeed!
But the CEO was rather upbeat on the conference call given the current environment.
Colfax Corp. rapidly started a cost reduction program of $ 13 mil until the end of 2009 and if necessary further cost reductions can be implemented.
He points to the healthy balance sheet: the debt/EBITDA ratio is 1.
As acquisitions are part of Colfax’s business model they also mention an improving „acquisitions pipeline”.
Perhaps the best news are – if all goes well – that the legacy asbestos problem goes to trial in october and Colfax awaits a definitive solution at the end of this year.
……. continues …..
Today Colfax Corp. (NYSE: CFX) reached $ 12.10 in an overall positive market.
This blog first discussed Colfax on May16th of this year. Then the price was $ 7.27
Until today this means a performance of 66%, by far outperforming the overall market!
……… Dear Reader, I hope you were invested!
On this blog we will have a look at the latest Q2 2009 results of Colfax published recently and we will discuss whether they justify this performance!
Stay tuned!
Also Markel came out with its Q2 2009 Earnings Report yesterday:
http://phx.corporate-ir.net/phoenix.zhtml?c=104364&p=irol-newsArticle&ID=1317391&highlight=
They reported book value of $ 239.68 per common share at June 30, 2009, up 8% from $ 222.20 at december31, 2008.
The combined ratio in Q2 2009 was 99% compared to 95% in Q2 2008.
Today August 06, 2009, they will host their conference call. If you like to listen, here is the link:
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=104364&eventID=2358584
Enjoy!
Colfax reported Q2 and Half Year 2009 results on August 4th!
Here is the link:
http://finance.yahoo.com/news/Colfax-Reports-Second-Quarter-prnews-2007607197.html?x=0&.v=1
We will discuss these results later on this blog.