Food acquisitions help SPX deliver Q4 sales increase

By Guy Montague-Jones

- Last updated on GMT

Related tags: Generally accepted accounting principles

The acquisition of food processing technology firms Anhydro and Gerstenberg Schroder in 2010 helped SPX Corp to report a small increase in fourth quarter revenues.

The US-based engineering company said Q4 revenues were $1.33bn compared to $1.32bn in the equivalent period last year.

One of the best performing businesses was Flow Technology – which supplies plant equipment to the food and beverage industry as well as the biotech, pharmaceutical and personal care sectors.

Flow Tech growth

Q4 Flow Technology revenues were up 11 per cent boosted by the acquisitions of Anhydro and Gerstenberg Schroder in 2010. And organic revenues increased 2.8 per cent.

The positive performance in Flow Technology was offset elsewhere by lower demand for cooling systems, particularly in China, and lower selling prices for power transformers.

As for profits, SPX beat Wall Street expectations despite a small drop in segment income and margins.

And net profit came into $65.3m in Q4, compared to a loss of $72.1m in the same period last year that was due to the write-off of goodwill at its car-tools business.

Summing up the year, Christopher Kearney, CEO at SPX, said: “We are pleased with our 2010 results as we have met or exceeded all the consolidated financial expectations we set at the beginning of the year and made progress towards our long term goals.”

Kearney promised to remain on the lookout for investment opportunities. “We are in a strong financial position with sufficient flexibility to continue to make strategic investments as opportunities arise.”

Related topics: Processing & Packaging

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