Friday, Colfax Corp. (CFX), a fluid handling product maker, posted an increase in first quarter profit backed by a 4.3% increase in net sales. The company also slashed its earnings guidance for the full year 2009.
The Richmond, Virginia-based company reported first-quarter net income of $6.86 million, compared to net income of $6.80 million in the same quarter last year. On a per share basis, net income was $0.16, down from $0.31 per share in the year ago quarter. Earnings on a per share basis declined for the quarter, on a higher share count.
On an adjusted basis, net income was $10.36 million or $0.24 per share, up from $10.14 million or $0.23 per share in the prior year quarter. Adjusted net income for the quarter included a negative currency effect of $0.05 per share.
On average, seven analysts polled by Thomson Reuters expected the company to earn $0.24 per share for the quarter. Analysts' estimates typically exclude special items. Net sales for the quarter were $136.32 million, up 4.3% from $130.65 million in the comparable quarter last year. Organic sales growth for the quarter was 17.9%, from the year ago quarter. Analysts expected the company to report revenue of $132.10 million for the quarter.
Selling, general and administrative expenses increased to $30.19 million from $28.51 million in the same quarter a year ago. Asbestos liability and defense costs were $1.65 million, up from $278 thousand in the previous year quarter.
Looking ahead to the full year 2009, the company lowered its earnings outlook to a range of $0.69 - $0.76 per share from its prior guidance of $0.80 - $0.87 per share. On an adjusted basis, earnings are now projected in the range of $1.00 - $1.07 per share, down from its prior guidance of $1.10 - $1.17 per share. Analysts currently expect the company to earn $1.02 per share for the full year.
The company said it initiated several cost reduction measures in response to the decline in demand. Colfax believes that economic conditions could remain difficult for the balance of the year and now expect organic sales for the year to be down between 2% - 4%.
CFX is currently trading at $7.66, down $0.74 or 8.81%, on a volume of 0.41 million shares on the NYSE.
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