Fluid handling products maker Colfax Corp. (CFX) Friday reported a sharp decline in fourth-quarter profit, absent a gain realized in the prior-year quarter related to asbestos liability and defense. On an adjusted basis, profit increased year-on-year, as sales grew nearly 11%. The pump maker also maintained its previously issued earnings projection for full-year 2009.
Fourth-quarter net income plunged to $10.38 million or $0.24 per share from $28.99 million or $0.77 per share in the same quarter a year ago.
Asbestos liability and defense costs for the quarter was $1.43 million compared to a hefty gain of $31.95 million in the corresponding quarter last year.
Excluding costs/gains related to asbestos liability and defense and other one-time items, net income increased to $17.5 million or $0.40 per share from $14.66 million or $0.33 per share in the year-ago quarter.
On average, five analysts polled by Thomson Reuters expected earnings of $0.32 per share for the quarter. Analysts' estimates typically exclude one-time special items.
Colfax's net sales for the quarter jumped 10.9% to $159.31 million from $143.70 million in comparable quarter a year ago.
Analysts had a consensus revenue estimate of $159.29 million for the quarter.
Operating income was $21.73 million, compared to $51.54 million in the year-earlier quarter.
For full-year 2008, Colfax slipped to a loss of $0.57 million or $0.11 per share from $64.88 million or $1.79 per share a year ago.
On an adjusted basis, net income climbed to $53.65 million or $1.22 per share from $40.41 million or $0.92 per share last year.
Sales for the year increased to $604.85 million from $506.31 million in the prior year.
The Street expected earnings of $1.13 per share on sales of $604.85 million for the year.
Looking forward, Colfax continues to expect 2009 earnings in the range of $0.80 - $0.87 per share and adjusted earnings between $1.10 and $1.17 per share. The Street currently expects earnings of $1.07 per share for the year.
CFX closed Thursday's regular trading at $10.13, up $1.03, on a volume of $0.17 million shares.
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