ANNAPOLIS JUNCTION, MD, Feb. 13, 2019 (GLOBE NEWSWIRE) --
- Reported net income (loss) from continuing operations per diluted share of $0.36 versus $(1.53) in the prior year quarter; achieved adjusted net income per share of $0.69 versus $0.45 for 53% growth
- Sales increased 13% with 11% organic growth in both business platforms; strong year-over-year adjusted operating margin expansion
- Air & Gas Handling orders grew 12% including continued strong performance in Industrial applications
- Recently completed successful financing for DJO Global acquisition announced in November 2018; process to explore potential strategic options of Air & Gas Handling business well underway
Colfax Corporation (NYSE: CFX), a leading diversified technology company, today announced its financial results for the fourth quarter of 2018.
The Company reported net income (loss) from continuing operations of $43 million or $0.36 per diluted share, compared to $(1.53) in the prior year quarter. Colfax also reported fourth quarter 2018 adjusted net income of $81 million or $0.69 per share compared to $0.45 per share for the same prior year period. Full year 2018 net income (loss) from continuing operations of $169 million, or $1.40 per diluted share, compared to $(0.59) in the prior year. Colfax also reported full year 2018 adjusted net income of $279 million, or $2.31 per share compared to $1.74 per share in the prior year.
Fourth quarter 2018 net sales of $985 million were 13% higher than the comparable period of 2017. Excluding acquisitions and foreign currency translation effects (FX), Fabrication Technology segment sales grew 11%, and Air & Gas Handling segment sales increased 11%. Fourth quarter 2018 Air & Gas Handling orders increased 12% to $412 million compared to the prior year period. Excluding acquisitions and FX, orders increased 13%.
Fourth quarter operating income was $49 million versus an operating loss of $(129) million in the prior year comparable quarter. Excluding goodwill and intangible asset impairment charges, and costs for restructuring and portfolio transformation, adjusted operating income was $92 million as compared with $69 million, and adjusted operating margins expanded 150 basis points to 9.4%. Air & Gas Handling adjusted operating margins grew 440 basis points to 12.1% as a result of restructuring actions, improved project margins and other business improvements. Fabrication Technology adjusted operating margins were 10.3% in the quarter or 11.2% excluding the October 2018 Gas Control Equipment acquisition. Fabrication Technology segment results included a property sale gain that was offset by other non-routine charges including Argentina hyper-inflation.
“Fourth quarter operating performance was in-line with expectations, and tax benefits contributed to outperformance,” said Matt Trerotola, Colfax President and CEO. “Fabrication Technology achieved strong sales growth from continued healthy market demand as well as new product launches, and pricing actions completed throughout the year. Air & Gas Handling drove another quarter of double-digit order growth with a significant mining project win and the successful long-term diversification into higher-growth end markets. We increased this business’ margins through restructuring actions and a deeper application of our business system to improve operational execution.”
In November 2018, Colfax announced the $3.15 billion acquisition of DJO Global as well as the launch of a project to explore strategic options for its Air & Gas Handling business. The DJO Global acquisition is expected to close in the first quarter of 2019 following receipt of regulatory approvals, and the Company recently completed the financing to support the acquisition and refinance existing bank loans. A process to explore the potential sale of the Air & Gas Handling business is well underway.
“Our acquisition of DJO is consistent with our strategy to create a higher margin, faster growing and less cyclical company,” said Mr. Trerotola. “DJO is a global leader in the attractive, growing orthopedic market, and we are excited about the potential to apply our business system to further improve the business’ growth and profitability. At the same time, we are improving the performance of our existing businesses and positioning our business portfolio to create sustained long-term value for our investors.”
About Colfax Corporation – Colfax Corporation is a leading diversified technology company that provides fabrication technology and air and gas handling products and services to customers around the world, principally under the ESAB and Howden brands. Colfax believes that its brands are among the most highly recognized in each of the markets that it serves. The Company uses its Colfax Business System (“CBS”), a comprehensive set of tools, processes and values, to create superior value for customers, shareholders and associates. Colfax is traded on the NYSE under the ticker “CFX.”
