Charlotte-based SPX Flow Inc., which was spun off from SPX Corp. in September, reported a third quarter loss and a drop in sales Wednesday. The company cited macroeconomic conditions such as low oil prices and a strong U.S. dollar as drags on its results.
Its first time reporting earnings as a standalone company, SPX Flow reported a loss of 10 cents a share for the three months that ended Sept. 26, down from a profit of $1.34 a share in the same period a year ago.
The company said quarterly revenues totaled $589.5 million, down 13.5 percent from $681.5 million a year ago. The impact of a stronger dollar decreased revenues by 7.9 percent, or $54 million. Lower revenue from the power and energy sector reflected lower oil prices, SPX Flow said.
“Demand across our key end markets declined in Q3 and continues to be impacted by lower oil prices, the stronger U.S. dollar and a general slowdown in the global industrial economy,” Chief Executive Officer Chris Kearney said in a statement Wednesday.
The U.S. dollar has appreciated about 13 percent in value against a basket of other currencies over the last year, making U.S. goods more expensive overseas and lowering the price of imports in the U.S.
For the quarter, SPX Flow incurred $34.6 million in “special charges” that also weighed on results. This includes costs to build a new 300,000-square-foot facility in Poland. As part of the multi-year plan intended to reduce global manufacturing overhead costs, SPX Flow will close two other facilities in Germany and Denmark, the company said Tuesday.
SPX Flow manufactures equipment such as pumps, valves and filtration systems and is based in Ballantyne.