SPX Swings to Loss on Charge

It takes a $102 million charge related to the divestiture of a discontinued business.
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SPX (SPW) , a maker of industrial products, said it swung to a loss in the third quarter, hurt by charges.

The company lost $48.1 million, or 82 cents a share, in the quarter, compared with earnings of $37.4 million, or 49 cents a share, a year ago. The third quarter included a loss from discontinued operations, net of tax, of $98.9 million, or $1.69 a share, driven by a charge of $102.7 million, or $1.76 a share, related to the planned divestiture of the Contech automotive components business. Income from continuing operations for the third quarter was 87 cents a share. Analysts polled by Thomson First Call were expecting earnings of 84 cents a share in the most recent quarter.

Third-quarter revenue rose 9.8% to $1.06 billion vs. analysts' expectation of $1.16 billion.

During the third quarter, the company repurchased 1.3 million shares of its common stock for $71.9 million.

"We improved in all of our key metrics in the third quarter, continuing the positive momentum we have achieved in each quarter this year," said the company. "Organic revenue growth remained strong, at 7.9% for the quarter, and segment income exceeded our expectations at $137.6 million, a 24% increase from the year-ago quarter. Segment margins expanded 150 points to 13.0%, and adjusted free cash flow from continuing operations improved $41.3 million to $112.5 million."

The company's board announced a quarterly dividend of 25 cents a share payable to shareholders of record on Sept. 15, 2006.

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