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SPX stock trades up after purchase

SPX Corp.’s stock Wednesday rose more than 3 percent following its acquisition of Arizona-based AutoXray Inc.
The company’s shares (NYSE:SPW) were trading at $38.98, up 3.59 percent from $37.63, at 2:30 p.m.
The Charlotte, N.C.. company owns area manufacturers Lightnin Corp. and Kayex. SPX’s service solutions business Tuesday agreed to acquire AutoXray, a company that designs automotive diagnostic test equipment and instrumentation. Financial details of the deal were not disclosed.
The company, however, posted a third-quarter earnings report on Nov. 1 that was weaker than expected. Net income for the quarter was $2.2 million, or 3 cents a share, down from $74.9 million, or 99 cents a share. The results include a non-cash impairment charge of $71.5 million, or 83 cents a share.
Sales in the third quarter rose 17 percent to $1.3 billion. The strength of foreign currencies against the U.S. dollar had a favorable impact on organic sales of about 2.2 percent, officials said.
SPX chairman John Blystone said the company experienced good growth in the third quarter, but called the earnings disappointing.
“Volume increases remain the primary driver of growth, while margins continue to be negatively impacted by a number of factors, including rising raw material costs, higher pension expense and the expensing of restricted stock,” said Blystone, who added that the 10 members of the company’s senior executive group will forgo bonus payments this year.
The company is expected to continue to evaluate the mix of businesses at SPX for potential divestitures.

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