CHARLOTTE, NC — SPX Corp. has reported results for the second quarter ended June 27.
SPX said revenues decreased 20.7 percent to $1.19 billion from $1.5 billion in the year-ago quarter. Organic revenues declined 14.8 percent, completed acquisitions increased reported revenues by 0.2 percent, and the impact of currency fluctuations decreased reported revenues by 6.1 percent.
Segment income and margins were $135.9 million and 11.4 percent, compared with $205.9 million and 13.7 percent in the year-ago quarter. Diluted net income per share from continuing operations was 80 cents, compared with $1.65 in the year-ago quarter. The current year quarter included special charges of $23.3 million, or 30 cents per share, related to restructuring actions.
Net cash from continuing operations was $61.9 million, compared with $48.5 million in the year-ago quarter. The increase in cash flow was due primarily to improved working capital management, offset partially by lower earnings and increased spend on restructuring.
Free cash flow from continuing operations during the quarter was $32.3 million, compared with $23.1 million in the year-ago quarter. The increase was due primarily to the items noted above, offset partially by higher capital expenditures in 2009.
"The global economic environment remains challenging. We are seeing some stabilization of short-cycle order rates from Q1 to Q2, but the levels are still depressed. We are also seeing strong quoting activity in our longer-cycle project businesses, but face delays in order placements for certain large projects," said Chris Kearney, chairman, president and CEO.
"Given this, we are lowering our earnings guidance range to $4.00 to $4.30 per share from $4.40 to $4.80 per share. Our cash flow guidance range remains at $230 to $270 million," Kearney said.
"We have a strong working capital focus and intend to maintain our substantial liquidity. Furthermore, we continue to be committed to growing and strategically investing in developing economies such as China, India, Russia and South Africa," he added.
