SPX Corp. (
reported its fourth-quarter and fiscal 2013 results.
Fourth-quarter earnings came in at $1.85 a share which surpassed
the Zacks Consensus Estimate of $1.81 by 2.2%. In the prior-year
quarter, the company reported net loss of $5.56 a share. The
prior-year quarter included a non-cash impairment charge of
$285.9 million, or $5.19 per share net of tax, associated with
the Thermal Equipment and Services segment and a mark-to-market
pension charge of $149.9 million, or $1.96 per share net of tax.
Revenues for the fourth quarter contracted 3.4% to $1.32
billion versus $1.37 billion reported in the prior-year quarter.
Organic revenues for the quarter declined 3% year over year. The
company reported weak revenue across two of its three reporting
segments and an unfavorable currency translation of 0.4% also
impacted the top line. Revenues were also below the Zacks
Consensus Estimate of $1.33 billion.
revenues for the fourth quarter declined 1.1% to $720.0 million
compared with $728.2 million in the prior-year quarter. Organic
revenues decreased 1.2%, while currency fluctuations increased
revenues by 0.1%. The contraction in organic revenues was
primarily attributable to a lower level of OE pump sales
resulting from increased discipline in order acceptance of OE
pump contracts as well as fewer nuclear project opportunities.
However, this was offset by increased sales of oil & gas
aftermarket services and pipeline valves, as well as increased
sales of food and beverage systems and components.
Revenues for the
Thermal Equipment and Services
segment declined 18.4% year over year to $364.7 million. Organic
revenues for the segment decreased 16.9%, while currency
fluctuations decreased revenues by 1.5%. The organic revenue
decline was due to lower sales of power generation equipment, the
expected decline of residential boiler sales related to the
relief efforts of Hurricane Sandy in 2012 and a slowdown in
revenue from large power projects in South Africa.
Revenues in the
Industrial Products and Services and Other
segment increased 22.6% to $234.3 million compared with $191.1
million in the prior-year quarter. Organic revenues for the
segment increased 22.4%, while currency fluctuations increased
revenues by 0.2%. Revenue was driven by organic revenue growth
across its business, led by a significant increase in sales of
Gross margin for the quarter increased 218 basis points (bps)
to 30.1%, primarily due to favorable currency fluctuations and
lower cost of products. For the fourth quarter, the company
reported an operating income of $131.7 million compared with a
loss of $313.1 million in the prior-year period.
Cash Flow & Balance Sheet
Exiting the quarter, the company had cash and cash equivalents
of $691.8 million. Cash from operating activities for the quarter
was $262.8 million, reflecting an increase of 17.8%. The company
had a long term debt of $1.1 billion as on Dec 31, 2013 which was
lower by 33.9% compared to Dec 31, 2012.
Following the earnings release, the company provided an
outlook for fiscal 2014. The company expects revenue growth to be
in the range of 2% to 6% while adjusted earnings from continuing
operations are expected to be in the range of $5.00 to $5.50 a
SPX Corporation currently carries a Zacks Rank #3 (Hold).
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), both carrying a Zacks Rank #2 (Buy).
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