Colfax Corp (NYSE:CFX) has raised its full year guidance. The company, which makes industrial pumps and valves used in the oil and gas industry, cites stronger first quarter results, a recent acquisition, and improved market conditions.
“Given our stronger than expected results for the first quarter of 2011, our acquisition of Rosscor Holding B.V. and current market conditions we have re-evaluated our outlook for 2011 and are raising our guidance,” said president and CEO Clay Kiefaber.
The Fulton, Maryland-based company is now predicting organic sales growth for fiscal year 2011 to be in the range of 6% to 8%, up from the earlier guidance of 2% to 4%.
In addition, the company foresees that earnings on a per share basis will be within the range of $1.12 to $1.22, versus the previous expectation of between $1.00 and $1.10 per share. Analysts were expecting the company to report earnings of $1.19 per share.
In the first quarter ending April 1, Colfax swung to a profit of $6.6 million, or 15 cents per share, compared with a net loss of $0.4 million, or one cent per share, a year earlier. First quarter orders climbed about 32.9% to $159 million. Sales growth was driven by broad-based strength in all of the company's end markets, except defense, it said.
Colfax acquired Netherlands-based company Rosscor Holding B.V, a supplier of multiphase pumping technology for the global oil and gas market, in February. The acquisition is expected to add to earnings over the next 12 months.
The company's shares were unchanged at $21.69 on Wednesday.