Earnings From Continuing Operations Forecasted up 26% - 31% at $6.00 to
$6.20 Per Share
CHARLOTTE, N.C., Jan. 23 /PRNewswire-FirstCall/ -- SPX Corporation
(NYSE: SPW), a Fortune 500 multi-industry manufacturing leader, today
announced its 2008 annual financial guidance:
- Revenues are expected to increase* between 25% and 30% to approximately
$6.1 billion. Organic revenue growth** is expected to be 5% to 7%,
while completed acquisitions and the impact of currency fluctuations
are expected to increase reported revenues by approximately 20% to 23%.
- Earnings from continuing operations are expected to increase* to $6.00
to $6.20 per share, up 26% to 31%. The primary driver of this
improvement is expected to be continued strength in the company's
global infrastructure end markets.
- Free cash flow from continuing operations** (cash flow from continuing
operations less capital expenditures) is expected to increase* to $260
million to $300 million. This performance represents 80% to 90%
conversion of expected net income.
Chris Kearney, President, Chairman and CEO said, "Building on SPX's
strong momentum in 2007, we expect to report strong, double-digit revenue
and earnings growth in 2008. With a maintained focus on driving organic
growth, improving margins, expanding in our key end markets, and developing
new, innovative products to meet the growing global demand for power and
energy, SPX is well positioned to perform in 2008 and beyond."
"We anticipate that continued investment in global infrastructure
development will remain a key growth driver for SPX in the year ahead,"
Kearney added. "With products and solutions that play an important role in
new power plant construction, as well as refurbishments, SPX is helping to
increase power capacity in new, developing and emerging markets including
the Middle East, Africa and Asia.
"Additionally, we foresee opportunities in the global sanitary market.
Our recent acquisition of APV greatly enhances our flow technology
segment's ability to serve the dairy, food, beverage, pharmaceutical and
healthcare markets. And we also see growth potential for our tools and
diagnostics business, particularly in Europe and Asia," Kearney concluded.
SPX will discuss its 2008 guidance at a meeting with investors at 1:00
p.m. Eastern Time today. The meeting will be held at The Pierre Hotel in
New York and will be webcast. Both the webcast and a printable file of the
slide presentation will be available in the Investor Relations section of
the company's website at http://www.spx.com. A replay of the webcast will be
available until Wednesday, February 6, 2008. In addition, the company
expects to release its full year 2007 results on February 27, 2008.
*All increases over 2007 numbers are based on 2007 estimates as of
October 31, 2007.
**Non-GAAP number: See attached reconciliation to the most comparable
GAAP number.
SPX Corporation is a Fortune 500 multi-industry manufacturing leader.
The company offers highly-specialized engineered solutions to solve
critical problems for customers.
SPX is focused on providing solutions that support the expansion of
global infrastructure, with particular emphasis on the growing worldwide
demand for energy and power. Its innovative product portfolio, containing
many environmentally friendly products, includes cooling systems for all
types of power plants throughout the world; custom engineered pumps, valves
and mixers that assist a variety of flow processes including oil and gas
exploration, distribution and refinement; handheld diagnostic tools that
aid in vehicle maintenance and repair, and power transformers that regulate
voltage for electrical transmission and distribution by utility companies.
SPX is headquartered in Charlotte, North Carolina and employs over
17,000 people worldwide in over 30 countries. Visit http://www.spx.com.
Certain statements in this press release, including any statements as
to future results of operations and financial projections, are
forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended, and are subject to the safe
harbor created thereby. Please read these results in conjunction with the
company's documents filed with the Securities and Exchange Commission,
including the company's annual report on Form 10-K for the year ended
December 31, 2006. These filings identify important risk factors and other
uncertainties that could cause actual results to differ from those
contained in the forward-looking statements. Actual results may differ
materially from these statements. The words "believe," "expect,"
"anticipate," "estimate," "guidance," "target" and similar expressions
identify forward-looking statements. Particular risks facing the company
include economic, business and other risks stemming from its international
operations, legal and regulatory risks, costs of raw materials, pricing
pressures, pension funding requirements, integration of acquisitions and
changes in the economy. Although the company believes that the expectations
reflected in its forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to be correct. In addition,
estimates of future operating results are based on the company's current
complement of businesses, which is subject to change. This press release
speaks only as of the date of its release. SPX does not intend to update
any statements in this press release except as required by regulatory
authorities.
SPX Corporation and Subsidiaries
2008E Free Cash Flow Reconciliation
(unaudited)
2008 Guidance Range
Net cash from continuing operations $400 $450
Capital expenditures $(140) $(150)
Free cash flow from continuing operations $260 $300
SPX Corporation and Subsidiaries
2008E Organic Growth Reconciliation
(unaudited)
Net Revenue Acquisition Foreign Organic
Growth/(Decline) and Other Currency Growth/(Decline)
2008E 25% - 30% 20% - 22% 1% - 2% 5% - 7%
SOURCE SPX Corporation
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Related links:
http://www.spx.com
CONTACT:
Jeremy W. Smeltser (Investors),
+1-704-752-4478, investor@spx.com, or Jennifer H. Epstein
(Media), +1-704-752-7403, jennifer.epstein@spx.com, both of SPX
Corporation
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