Charlotte-based manufacturer SPX Corp. reported a first quarter decline in earnings and sales as the company works to split itself into two independent, publicly traded entities.
For the three months that ended March 28, the company reported consolidated income of $75.5 million from its flow technology, thermal equipment and industrial products segments, down about 24 percent from $98.7 million in the first quarter of 2014.
The manufacturer’s earnings from continuing operations were 5 cents per share, below the forecast of Bloomberg-surveyed analysts who called for 7 cents.
SPX – which makes equipment for the food and beverage industry, flow components for oil and gas processing, power transformers for utility companies and cooling systems for power plants – announced in October it will split into two companies, spinning off its flow products division as an independent standalone. First quarter earnings, SPX said, included costs associated with the spinoff, which is expected to be completed in the third quarter.
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The company’s first quarter revenue was $950 million, down 12 percent from $1.08 billion in the first quarter a year ago.
The impact of a stronger dollar, the company said, decreased revenues by about 6 percent, and the other 6 percent was due to lower power and energy revenue, “largely reflecting the impact of lower oil prices on our customers’ capital spending decisions.”
“Broadly speaking, these factors have caused many of our customers to reevaluate their capital spending budgets, leading to delayed order placement and project timing,” Chris Kearney, chairman, president and CEO of SPX, said in a statement.
The company said it expects yearly revenue to decline 6 to 10 percent, which includes a 6 percent currency headwind.
SPX employs about 350 people in Charlotte, where the company is headquartered in a Ballantyne office building.