Colfax Earnings Q2 2009
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 …..