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SPX posts steep drop in 3rd-quarter profit

SPX Corp. said Wednesday its third-quarter profit plunged as the recession continued to hit the industrial equipment maker, with most businesses posting lower revenue and profit.
/ Source: The Associated Press

SPX Corp. said Wednesday its third-quarter profit plunged as the recession continued to hit the industrial equipment maker, with most businesses posting lower revenue and profit.

SPX also lowered its guidance for the year, sending shares sharply lower in morning trading.

Net income of $46 million, or 93 cents per share, was down 61 percent from $117 million, or $2.12 per share in the same quarter last year.

The latest quarter's results include a loss of $2.5 million, or 5 cents per share, from discontinued operations related to SPX divesting its automotive filtration solutions product.

Analysts surveyed by Thomson Reuters expected earnings of 82 cents per share. Analyst estimates typically exclude one-time charges.

Revenue slipped 21 percent to $1.17 billion from $1.48 billion, meeting analyst estimates.

SPX lowered its full-year earnings guidance to a range of $3.80 per share to $4 per share, from a previous forecast of $4 to $4.30 per share.

Analysts predict 2009 income of $3.96 per share.

"Although some macroeconomic trends appear to be pointing toward a recovery, we expect our recovery to lag the broader economy," said Chris Kearney, chairman, president and CEO in a statement.

While orders in many of the company's businesses are stabilizing, demand in key markets remains depressed, the company said.

Shares of SPX lost $5.77, or 9.5 percent, to $54.93 in morning trading. The stock has ranged from $25.45 to $65.23 over the past year.