Profile: SPX Corporation (SPW.N)

SPX Corporation, incorporated in 1912, is a global multi-industry manufacturing company with operations in over 40 countries and sales in over 150 countries around the world. The majority of its revenues, approximately 56% during the year ended December 31, 2008, are driven by global infrastructure development. Its infrastructure-related products and services include wet and dry cooling systems, thermal service and repair work, heat exchangers and power transformers into the global power market. The Company also provides pumps, metering systems and valves into the global oil and gas, chemical and petrochemical exploration, refinement and distribution markets. Its infrastructure-related products also include packaged cooling towers, boilers, heating and ventilation equipment and filters. The Company’s other two markets includes tools and diagnostics and food and beverage. In this area, the Company provides, among other things, electronic diagnostic systems, specialty service tools, service equipment and technical information services with a primary focus on the global transportation market. The Company has four operating segments: Flow Technology, Test and Measurement, Thermal Equipment and Services, and Industrial Products and Services. In September 2008, the Company acquired Autoboss Tech, Inc., a China-based manufacturer of diagnostic tools and equipment.

In January 2009, the Company sold its remaining portion of its DeZurik product line to Sartell Valves Inc., a Minnesota-based water and wastewater treatment company. In July 2008, it announced the completion of the sale of its air filtration business unit to the Riverside Company. In December 2008, the Company sold its operations of Vibration Testing and Data Acquisition Equipment business (LDS) and Scales and Counting Systems business (Scales). In October 2009, the Company announced that it completed the sale of its Filtran business unit, to Madison Capital Partners.

Flow Technology

The Flow Technology segment designs, manufactures and markets products and solutions that are used to blend, meter and transport fluids, as well as air and gas filtration and dehydration products.

Its primary products include high-integrity pumps, valves, heat exchangers, fluid mixers, agitators, metering systems, filters and dehydration equipment. The Company’s primary global end markets are sanitary food, beverage and pharmaceutical processing, general industrial, chemical processing, oil and gas processing, power generation, general industrial, chemical processing, oil and gas processing, air dehydration and mining. The Company sells to these end markets under the brand names of Waukesha Cherry-Burrell, DeZurik, Lightnin, Copes-Vulcan, M&J Valves, Bran & Luebbe, APV, APV Gaulin and APV Rannie Pneumatic Products, Delair, Dollinger Filtration, Jemaco, Kemp, Vokes, Deltech and Hankinson.

Competitors in these fragmented markets include Alfa Laval, AB, GEA Group AG, Fisher Controls International LLC, Hayward Filtration, Chemineer, Inc., EKATO Group, LEWA, Inc., Fristam Pumpen F. Stamp KG (GmbH & Co.) and Südmo North America, Inc.

Test and Measurement

The Company’s Test and Measurement segment engineers and manufactures branded, technologically advanced test and measurement products used on a global basis across the transportation, telecommunications and utility industries. Its technology supports the introduction of new systems, expanded services and testing and validation. Products for the segment include specialty diagnostic service tools, fare-collection systems, and portable cable and pipe locators. The Company’s diagnostic service tools product line includes diagnostic systems and service equipment, as well as specialty tools. It sells diagnostic systems and service equipment to the franchised vehicle dealers of original equipment manufacturers (OEMs), aftermarket national accounts and independent repair facilities. It sells diagnostic systems under the OTC, Actron, AutoXray, Tecnotest and Robinair brand names.

The Company is a primary global provider of specialty tools for motor vehicle manufacturers' dealership networks to General Motors, Ford, Chrysler, BMW, Volkswagen, Renault, Nissan, Harley Davidson and John Deere. The segment sells automated fare-collection systems to municipal bus and rail transit systems, primarily within the North American market. Its portable cable and pipe locator line comprises electronic testing, monitoring and inspection equipment for locating and identifying metallic sheathed fiber optic cable, horizontal boring guidance systems and inspection cameras. The segment sells this product line to a customer base, including utility and construction companies, municipalities and telecommunication companies.

Thermal Equipment and Services

The Company’s Thermal Equipment and Services segment engineers, manufactures and services cooling, heating and ventilation products for markets throughout the world. Products for the segment include dry, wet and hybrid cooling systems for the power generation, refrigeration, HVAC and industrial markets, as well as hydronic and heating and ventilation products for the commercial and residential markets. This segment also provides thermal components for power and steam generation plants and engineered services to maintain, refurbish, upgrade and modernize power stations. The Company sells its cooling products and services under the brand names of Marley, Balcke-Duerr, Ceramic and Hamon Dry Cooling.

The Company’s hydronic products include a line of gas and oil fired cast iron boilers for space heating in residential and commercial applications, as well as ancillary equipment. Its heating and ventilation product line includes baseboard, wall unit and portable heaters, commercial cabinet and infrared heaters, thermostats and controls, air curtains and circulating fans. The segment sells heating and ventilation products under the Berko, Qmark, Farenheat, Aztec, Patton and Leading Edge brand names.

The Company competes with Burnham Holdings, Inc, Buderus, TPI Corporation, Ouellet, King Electric, Systemair MFG. LLC, Cadet Manufacturing Company, Dimplex North America Ltd, Broan-NuTone LLC and Airmaster Fan Company.

Industrial Products and Services

Of the Company’s Industrial Products and Services segment revenues, approximately 47% was from the sale of power transformers into the United States transmission and distribution market. The Company is a provider of medium sized transformers (MVA between 10 and 60 mega-watts) in the United States. Its transformers are sold under the Waukesha Electric brand name. Customers for this product line are public and privately held utilities. In addition, this segment includes operating units that design and manufacture industrial tools and hydraulic units, precision machine components for the aerospace industry, crystal growing machines for the solar power market, and television and radio broadcast antenna systems, communications and signal monitoring systems, and precision controlled industrial ovens and chambers. The primary distribution channels for the Industrial Products and Services segment are direct to customers, independent manufacturing representatives and third party distributors.

The Company competes with ABB ltd, Kuhlman and GE Prolec.