SPX 3rd-quarter net income declines
CHARLOTTE, N.C. (AP) — SPX said Wednesday that its third-quarter net income declined 5 percent as expenses climbed for the maker of equipment for the food, auto and power industries and it dealt with softness in Europe and parts of the Asia Pacific region.
While the company lowered the high end of its full-year revenue forecast, its guidance is still above Wall Street's expectations.
Its shares rose almost 3 percent in afternoon trading.
For the three months ended Sept. 29, SPX Corp. earned $57.8 million, or $1.16 per share, down from $60.7 million, or $1.20 per share, a year ago. Earnings from continuing operations rose to $1.05 per share from 97 cents per share.
Analysts predicted earnings of $1.08 per share, according to a FactSet survey.
Revenue climbed 7 percent to $1.25 billion from $1.17 billion, benefiting from acquisitions and increased sales of flow components and power transformers in North America. Analysts expected $1.3 billion.
Its industrial products and services and flow technology units posted higher sales, while its thermal equipment and services division posted a sales decline.
SPX said that its total revenue for the quarter was a bit softer than expected due to weakness in Europe and some part of the Asia Pacific region as well as delays related to some projects.
Due to these factors, the Charlotte, N.C.-based company revised its full-year revenue forecast. It now foresees revenue growth of 11 percent to 12 percent. SPX's prior forecast was for an 11 percent to 15 percent revenue increase. Based on 2011's $5.46 billion, this implies $6.06 billion to $6.11 billion.
Analysts expected revenue of $5.13 billion for the year.
The company anticipates its Service Solutions sale will close in early December. It foresees having about $2 billion in available liquidity once it receives proceeds from the sale and plans to repay $350 million in debt and make $275 million in additional buybacks.
Shares of SPX added $1.83, or 2.8 percent, to $67.71 in afternoon trading. Over the past year, the stock has traded between $54.34 and $79.42.