SPX Corp.â€™s stock Wednesday rose more than 3 percent following its acquisition of Arizona-based AutoXray Inc.
The companyâ€™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. SPXâ€™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.
â€œVolume 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,â€ said Blystone, who added that the 10 members of the companyâ€™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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