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Restructuring cuts 2Q profits at SPX Corp.

Charlotte-based diversified manufacturer SPX Corp. reported a decrease in earnings for the second quarter, as the company continued restructuring efforts and demand fell in some Asian markets.

Net income for the quarter was $38.8 million, down 18 percent from $47.4 million in the same quarter last year. Revenue was $1.22 billion, down 2 percent from $1.24 billion in the year-ago quarter.

SPX makes a wide range of equipment, including food and beverage systems, electricity and vehicle services, and power transformers for utility companies. Headquartered in Ballantyne, the Fortune 500 company employs about 350 in Charlotte and 15,000 employees globally.

During a conference call Wednesday, chairman and CEO Chris Kearney said the second quarter included $18 million in charges, stemming in part from the company’s restructuring of its ClydeUnion pumps unit.

SPX acquired the Scottish pump company in 2011.

The restructuring includes reducing the overall company’s workforce by about 500 through the end of the year, Kearney said. Those savings didn’t show up in the second quarter, but should be realized later in the year, chief financial officer Jeremy Smeltser said.

In the Asian Pacific rim, demand for SPX’s food and beverage systems that contributed $20 million in revenues during the second quarter of 2012 wasn’t repeated in 2013, Smeltser said.

But other units saw growth, he said, including the power transformer business, bolstered by large power projects in South Africa.

Also seeing growth was component sales in oil and gas markets in North America, Europe and the Middle East, and increased food and beverage system revenues in Europe.

Smeltser said SPX also landed new deals recently. Earlier this week, the company announced it won a $40 million contract to supply its flow technology systems to a powdered infant formula processing plant in Germany.

That contract matches the company’s focus for the rest of the year. Kearney said Wednesday that while the company remains committed to improving performance across all sectors, “Our strategy is to further concentrate our business on flow technology.”

Smith: 704-358-5087
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