<\/p>\n
This was Colfax CEO John Young’s\u00a0 comment about the 2009 Q3 results!<\/p>\n
… and the numbers clearly reflect that:<\/p>\n
Net sales in the third quarter were $ 128.5 mil, 16.2% less compared to Q3 2008.<\/p>\n
Net income was $ 1.8 mil including restructuring charges of $ 9.6 mil.<\/p>\n
These results are preliminary 2009 Q3 results because they do not include the recent favorable asbestos ruling on October 14, 2009 for the company’s warren pump division.<\/p>\n
Colfax still felt the crisis, there is no doubt!<\/p>\n
But in this environment management quickly reacted, cut cost and reduced headcount by 15%. All cost reductions will translate into approximately $16 mil of savings in 2009.<\/p>\n
The most impressive evidence of management’s action is the dramatic improvement of their cash flow statement:<\/p>\n
They went from free cash flow negative one year ago to a free cash flow of $26.2 mil and a margin of 6.7% in the first 9 months of 2009!<\/p>\n
Encouraging signs are coming from their order book:<\/p>\n
On a sequential basis, their organic orders were up 15% driven by increases in the commercial marine, Navy, power generation and general industrial markets.<\/p>\n
Backlog is also up slightly since the end of the second quarter.<\/p>\n
\n
Colfax still remains cautious and lowers their outlook for FY 2009:<\/p>\n
They now expect adjusted earnings\/share of $0.88 – $0.94 .<\/p>\n
On Friday the stock closed at $ 12.04.<\/p>\n
So for FY 2009 the P\/E is 13\u00a0 and the price\/free cash flow ratio is about 17.<\/p>\n
This seems to be a reasonable price for a high quality company.<\/p>\n
Why not snap up some shares and wait until the economy further improves?<\/p>\n
Future acquisitions on this way will certainly bring some upside potential too!<\/p>\n","protected":false},"excerpt":{"rendered":"
This was Colfax CEO John Young’s\u00a0 comment about the 2009 Q3 results! … and the numbers clearly reflect that: Net sales in the third quarter were $ 128.5 mil, 16.2% less compared to Q3 2008. Net income was $ 1.8 mil including restructuring charges of $ 9.6 mil. These results are preliminary 2009 Q3 results […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[21],"_links":{"self":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts\/377"}],"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=377"}],"version-history":[{"count":12,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts\/377\/revisions"}],"predecessor-version":[{"id":391,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts\/377\/revisions\/391"}],"wp:attachment":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=377"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}