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SPX Management Discusses Q2 2012 Results - Earnings Call Transcript

In the appendix, we have provided reconciliations for all non-GAAP financial measures included in today's presentation. I'd also like to point out that portions of our presentation and comments are forward looking and subject to Safe Harbor provisions, and please also note the risk factors in our most recent SEC filings.

And with that, I'll turn the call over to Chris.

Christopher J. Kearney

Thank you, Ryan. Good morning, everybody. Thanks for joining us on the call today. Our second quarter results were highlighted by double-digit organic revenue growth in our Flow Technology and Industrial segments, both of which also reporting improved core margin performance excluding the impact of acquisitions. This growth was partially offset by lower revenue and profitability in our Thermal segment, where we continue to face challenging market conditions in power generation.

On a consolidated basis, organic revenue grew 3% year-over-year, driven by 23% growth in Asia Pacific and 1% growth in the Americas. In Europe, overall demand weakened during the quarter, and organic revenue declined 5% year-over-year. We have adjusted our full year expectations to reflect the ongoing uncertainty in the macroeconomic landscape in Europe.

Currency rate changes, particularly the weakening of the euro, were also a notable headwind to our Q2 results and our revised full year expectations. For the full year, we now expect revenue growth in the range of 11% to 15%, down from the previous target of 13% to 19%. As we said, 2012 was a year of strategic transition for our company as we are executing on several actions that we expect to improve our future earnings potential.

I'll begin this morning with an update on the progress we've made on these actions, and I'll provide an overview of the trends in our key end markets. Jeremy will then give a detailed analysis of our financial results.

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