CHARLOTTE, N.C., Jan. 21 /PRNewswire-FirstCall/ -- SPX Corporation
(NYSE: SPW), today announced its 2009 annual financial guidance. "We believe
the company is well-positioned to meet the challenges ahead, including the
uncertain economic environment," said Chris Kearney, President, Chairman and
CEO of SPX. "In response to the current state of the global economy, we are
initiating a number of restructuring actions for 2009 totaling as much as $65
million. We believe this positions us well given current conditions and
continues our strategy of simplifying our business structure for the future."
Kearney said the company is committed to its long-term strategy of
focusing on the three global end markets of global infrastructure, tools and
diagnostics and process equipment. He also emphasized SPX's strong financial
position. "Our available liquidity of over one billion dollars will provide us
flexibility in making strategic capital allocation decisions. Our disciplined
approach to capital allocation continues to generate positive returns, as our
recent share repurchases and the integration of the APV acquisition are
helping to mitigate the economic and currency translation headwinds we face in
2009," he added.
The 2009 annual financial guidance for SPX includes:
-- Revenues are expected to decline* between 7% and 12% to approximately
$5.3 to $5.6 billion. Organic revenues** are expected to be flat to down 5%
from 2008*, while divestitures and the impact of currency fluctuations are
expected to reduce reported revenues by approximately 2% and 5%, respectively.
-- Earnings from continuing operations are expected to be $5.40 to $5.80
per share, down 10% to 16% from 2008*. The company expects to incur $65
million, or approximately $0.85 per share, in restructuring charges in 2009.
These charges are primarily focused on cost reductions in response to the
slowing global economy.
-- Operating cash flow from continuing operations is expected to be in the
range of $330 million to $370 million, while capital expenditures are targeted
at $100 million. The resulting free cash flow target** (cash flow from
continuing operations less capital expenditures) is expected to be in the
range of $230 million to $270 million. This performance represents 85% to 95%
conversion of expected net income.
SPX will discuss its 2009 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 www.spx.com. A replay of the webcast will be available
until Wednesday, February 4, 2009. In addition, the company expects to
release its full year 2008 results on February 25, 2009.
*All variances from 2008 numbers are based on 2008 estimates as of
October 29, 2008.
**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 energy
efficient products, includes cooling systems for power plants throughout the
world; custom engineered process equipment that assists a variety of flow
processes including food and beverage manufacturing, oil and gas exploration,
distribution and refinement and power generation; 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 more than
17,000 people worldwide in over 35 countries. Visit www.spx.com. (NYSE: SPW)
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, 2007. 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 changes in the economy, its international operations,
legal and regulatory risks, costs of raw materials, pricing pressures, pension
funding requirements and integration of acquisitions. 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 intent
to update any statements in this press release except as required by
regulatory authorities.
SPX Corporation and Subsidiaries
2009E Organic Growth Reconciliation
(unaudited)
Net Revenue Foreign Organic
Growth/(Decline) Divestitures Currency Growth/(Decline)
2009E (7%) - (12%) (2%) (5%) 0% - (5%)
