Multi-industry equipment manufacturing firm SPX Corp. (SPW) reported Wednesday a sharp decline in second-quarter profit, reflecting a drop in revenues across all four segments and also heavy restructuring charges. The company also lowered its earnings guidance for the fiscal year 2009.
For the second quarter, net income attributable to SPX dropped to $33.4 million or $0.68 per share from $94.8 million or $1.73 per share in the previous year. The results of the latest quarter included restructuring related charges of $23.3 million or $0.30 per share.
On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.72 per share in the second quarter. Analysts' estimates typically exclude special items.
Income from continuing operations tumbled to $39.1 million from $90.3 million in the second quarter of the prior fiscal year.
Revenues dipped 20.7% to $1.19 billion from $1.50 billion, as organic revenues decreased 14.8% year-over-year and currency fluctuations pared down revenues by 6.1%. Five analysts were expecting revenue of $1.24 billion in the second quarter.
Flow Technology revenues dropped 25.9% to $396.2 million from $534.5 million, with organic revenues decline of 17.4% mainly because of softness in the dehydration, industrial, mining and food and beverage markets. Test and Measurement revenues fell 35.1% to $207.6 million from $320.0 million, with an organic revenue decline of 29.4%, reflecting prevailing difficulties experienced by vehicle manufacturers and their dealer service networks.
Revenues from Thermal Equipment and Services were $368.9 million, down 9.9% from $409.4 million. Organic revenues decreased 4.3% from the year-ago period. Industrial Products and Services revenues decreased 8.4% to $220.8 million from $241.0 million. Organic revenues dropped 7.4%, mainly attributable to softness in the hydraulic tools and solar crystal grower product lines.
For the first six months of 2009, net income attributable to SPX dwindled to $57.8 million or $1.16 per share from $156.2 million or $2.87 per share last year. Revenues declined to $2.35 billion from $2.85 billion in the same period last year.
Looking forward, for the full year, the company lowered its earnings guidance range to $4.00 to $4.30 per share from $4.40 to $4.80 per share. Analysts are currently looking for earnings of $4.14 per share on revenue of $4.94 billion for fiscal 2009.
SPW closed Tuesday's regular trading hours at $53.93 on the NYSE.
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