{"id":1227,"date":"2013-07-28T14:17:53","date_gmt":"2013-07-28T12:17:53","guid":{"rendered":"http:\/\/www.blog.asmus-puhl.com\/?p=1227"},"modified":"2013-07-28T14:17:53","modified_gmt":"2013-07-28T12:17:53","slug":"colfax-continues-to-make-solid-progress-in-a-difficult-environment","status":"publish","type":"post","link":"http:\/\/www.blog.asmus-puhl.com\/?p=1227","title":{"rendered":"Colfax continues to make solid progress in a difficult environment"},"content":{"rendered":"<p style=\"text-align: justify;\"><a href=\"http:\/\/seekingalpha.com\/article\/1571432-colfax-corp-cfx-management-discusses-q2-2013-results-earnings-call-transcript?source=yahoo\" target=\"_blank\">Seeking Alpha published the conference call transcript of Colfax Q2 2013 Conference Call.<\/a><\/p>\n<p style=\"text-align: justify;\">Colfax revenue grew to $ 1.07 billion, a little less than analysts had expected, but diluted EPS came in at $ 0.53 ahead of expectations.<\/p>\n<p style=\"text-align: justify;\">Operating margin improved strongly from 5.8% in Q2 2012 to 10.4% in this year`s second quarter. Net margin improved even more from a not adjusted 1.8% to 6.2% this quarter!<\/p>\n<p style=\"text-align: justify;\">So what&#8217;s behind these numbers?<\/p>\n<p style=\"text-align: justify;\">This quarter was all about operational improvements applying the \u201eColfax Business System (CBS)\u201c!<\/p>\n<p style=\"text-align: justify;\">The economic climate remains difficult as revenue growth of just 2.7% clearly demonstrates. And this will not change as the company anticipates,\u00a0<span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\">even if <\/span><\/span><span style=\"color: #333333;\"><span style=\"font-family: 'Times New Roman', serif;\"><span style=\"font-size: medium;\">there is significant variation across sectors: \u201e<\/span><\/span><\/span><span style=\"color: #333333;\"><span style=\"font-family: verdana, arial, helvetica, clean, sans-serif;\"><span>subdued activity in mining and the continued deferral of oil and gas projects are expected to offset the strong order growth we anticipate in the Power Generation end market.\u201c<\/span><\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span><span style=\"font-family: verdana, arial, helvetica, clean, sans-serif;\">Other financial key numbers were strong either as CFO C. Scott Brannan pointed out: Operating cash flow was strong for the second quarter at $86 million. Inventory balances decreased $37 million and working capital, as a percentage of sales, decreased to 17% at quarter end.<\/span><\/span><\/p>\n<p style=\"text-align: justify;\">But perhaps the most interesting hint CEO Steven E. Simms gave on the call was that <span><span style=\"font-family: verdana, arial, helvetica, clean, sans-serif;\">there is a reasonable possibility that some acquisitions may close in the second half of 2013!<\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span><span style=\"font-family: verdana, arial, helvetica, clean, sans-serif;\">Don&#8217;t forget, they issued 7.5 million new shares of common stock on May 10 and they want to deploy that money rather sooner than later.<\/span><\/span><\/p>\n<p style=\"text-align: justify;\">The company&#8217;s guidance is <span><span style=\"font-family: verdana, arial, helvetica, clean, sans-serif;\">for adjusted EPS of $1.95 to $2.10 for 2013 without the effect of any acqusitions.<\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #333333;\"><span style=\"font-family: verdana, arial, helvetica, clean, sans-serif;\"><span>This translates into a p\/e ratio of 26. Not cheap certainly, but don&#8217;t forget, this company is able to surprise us even if the economic climate remains difficult!<\/span><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Seeking Alpha published the conference call transcript of Colfax Q2 2013 Conference Call. Colfax revenue grew to $ 1.07 billion, a little less than analysts had expected, but diluted EPS came in at $ 0.53 ahead of expectations. Operating margin improved strongly from 5.8% in Q2 2012 to 10.4% in this year`s second quarter. Net [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"_links":{"self":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts\/1227"}],"collection":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1227"}],"version-history":[{"count":9,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts\/1227\/revisions"}],"predecessor-version":[{"id":1236,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts\/1227\/revisions\/1236"}],"wp:attachment":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1227"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}