Colfax Q3 Profit, Net Sales Decline, Misses Street View; To Cut 1,500 Jobs

(RTTNews) - Colfax Corp. (CFX) reported that its third quarter net income declined to $18.4 million, or $0.15 per share, from prior year period's $73.4 million or $0.59 per share.

Adjusted net income was $29.5 million, or $0.24 per share, compared to $71.3 million or $0.57 per share in the year-ago quarter. On average, 14 analysts polled by Thomson Reuters estimated earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales declined 16.8% to $969.1 million from the prior year. Net sales decreased 6.5% organically. Analysts had a consensus revenue estimate of $994.30 million for the quarter.

Colfax said its Fabrication Technology segment continued to face weak end markets, and the declining volume and volatile market and currency movements in Latin America depressed margins.

In addition, the company announced that it is aggressively accelerating cost reduction program. By the end of 2016, the company now expects to eliminate in excess of $100 million from cost structure and reduce the workforce by approximately 1,500 compared to where it started 2015.

The company also plans stock repurchase of up to $100 million.