CORRECTED-UPDATE 2-SPX Corp profit meets Wall Street's forecast
(Corrects to show results met, not exceeded, expectations)
* Q2 adjusted EPS $0.74 meets analysts' expectations
* Revenue up 10.9 percent in quarter
* Cuts full-year sales growth forecast on weak euro
Aug 1 (Reuters) - Diversified U.S. manufacturer SPX Corp reported a 38.2 percent rise in net income on Wednesday, as solid demand for its equipment used in industries from dairies to oil and gas production helped offset expenses from its 2011 acquisition of British pump maker ClydeUnion.
The company, which makes equipment used in beverage and oil production as well as cooling towers for power plants, said second-quarter net income rose to $47.4 million, or 93 cents per share, compared with $34.3 million, or 67 cents per share, a year earlier.
Factoring out one-time items, profit matched analysts' average forecast, according to Thomson Reuters I/B/E/S.
Revenue rose 10.9 percent to $1.26 billion from $1.14 billion a year earlier but was shy of analysts' $1.3 billion expectation.
It noted that sales rose 23 percent in Asia in the quarter but fell 5 percent in Europe, reflecting weaker-than-expected demand there.
SPX has stopped giving per-share profit forecasts while it completes the sale of an auto tools business. It cut its full-year revenue growth forecast to a range of 11 to 15 percent, down from a prior forecast of 13 to 19 percent growth, saying the cut reflects the weakening exchange rate of the euro against the dollar, which reduces the value of its European sales.
Chief Executive Chris Kearney has worked over the past few years to focus the Charlotte, North Carolina-based company on its flow-control business, which makes equipment used in handling fluids of all types. Its competitors in that sector include Pentair Inc, Flowserve Corp and Xylem Inc.
SPX shares have risen about 2 percent so far this year, lagging the 7 percent rise of the Standard & Poor's capital goods industry index. (Reporting By Scott Malone; Editing by Gerald E. McCormick)
- Moscow fights back after sanctions; battle rages near Ukraine crash site
- Carnage at U.N. school as Israel pounds Gaza refugee camp |
- U.S. economy bounces back in second quarter
- EU and U.S. announce new sanctions on Russia over Ukraine |
- Obama says strains over Ukraine not leading to new Cold War with Russia