SPX posts better than expected revenue growth

03-Nov-2010 - Last updated on 03-Nov-2010 at 12:21 GMT

Related tags Revenue

SPX Corporation’s third quarter financial results show that revenue rose 10 per cent to $1.29bn, from $1.17bn in the previous year’s quarter - the first time that the global technology player has reported revenue growth since Q4 2008.

The global group’s third quarter financial results show that revenue rose 10 per cent to $1.29bn, from $1.17bn the previous year’s quarter - the first time that the global technology player has reported revenue growth since Q4 2008.

And SPX stressed that it expects that strategic actions during the quarter, such as the acquisition of food and beverage processing system supplier, Anhydro, will go some way towards improving its global capabilities as well as its long-term competitive position.

Factoring out currency fluctuations and the benefit of acquisitions, revenue was up 6.8 per cent, stated the company, who added that the refinancing of a significant portion of its outstanding debt during the quarter, capitalisation on favourable market conditions and increasing its financial flexibility also contributed to the positive results.

Sales into emerging markets, continued SPX, were strong again in Q3, accounting for 26 per of its total revenue.

In terms of its flow technology unit, for which the food and beverage manufacturing market is key, the group said that revenues for the third quarter of 2010 were $438.6m compared to $406.0m in the third quarter of 2009, an increase of $32.6m, or 8 per cent.

“Organic revenues increased 1.2 per cent, driven primarily by project execution and demand in industrial end markets. The 2010 acquisitions of Anhydro and Gerstenberg Schroeder increased reported revenues by 8.3 per cent,” stated SPX

In the thermal equipment and services division, an SPX unit which also supplies the food and beverage sector, revenues for the third quarter of 2010 were $440.1m compared to $401.4m in the third quarter of 2009, an increase of $38.7m, or 9.6 per cent.

Organic revenues increased 6.6 per cent in the quarter, driven primarily by increased sales of cooling systems and heat exchangers in emerging regions, continued the financial statement.

And the December 2009 SPX Heat Transfer acquisition increased reported revenues by 5.1 per cent, added the group.