Compressed Air Best Practices - March 2008 - (Page 48)

| 03/08 Compressed Air Industry FOOD PROCESSING | WALL STREET WATCH “Acquisitions remain an important part of our Win Strategy,” continued Washkewicz. “Our strong cash flow allows us the opportunity to selectively add to our portfolio those technologies that have high growth profiles. We made four strategic acquisitions this quarter, adding approximately $223 million in sales. These acquisitions included electrical and production umbilical cables for subsea oil and gas installations, further expansion of our aerospace components and equipment capabilities, precision electro-pneumatic control systems and temperature sensing protection equipment.” “Also notable is that our Industrial International segment again delivered particularly strong results in the quarter, as revenues and operating income in that segment grew by approximately 27.7% and 43.9%, respectively,” added Washkewicz. p Orders increased 16% in the Industrial International segment versus the same quarter a year ago Orders increased 19% in the Aerospace segment on a rolling 12 month average basis Orders decreased 6% in the Climate and Industrial Controls segment versus the same quarter a year ago p p Outlook For fiscal year 2008, the company increased its guidance for earnings to the range of $5.15 to $5.40 per diluted share. Previous guidance for earnings was $5.05 to $5.35 per diluted share. “Fiscal 2008 continues to be strong overall,” added Washkewicz. “Based on what we can see in our markets going forward, we have raised our earnings guidance. Total order growth rate this quarter reached double digits. Our orders remain strong across most segments, and are growing in Europe, Asia, Latin America and North America. In general, many of our key markets continue to grow, including aerospace. For those markets that are flat, they have been performing at this level for some time, which also positions us to benefit when they return to more normal growth levels.” CHARLOTTE, NC — January 23, 2008, SPX Corporation (NYSE:SPW), today announced its 2008 annual financial guidance: p Segment Results In spite of a soft overall economy in the Industrial North America segment, second-quarter sales increased 3.3% to $991.4 million, and operating income increased 5.8% to $141.7 million, as compared to the same period a year ago. In the Industrial International segment, second-quarter sales increased 27.7% to $1.2 billion, and operating income increased 43.9% to $175.2 million, as compared to the same period a year ago. In the Aerospace segment, second-quarter sales increased 7.1% to $430.7 million, and operating income decreased 23.4% to $51.9 million, as compared to the same period a year ago. Near-term research and development expenses continue to impact this segment. In the Climate & Industrial Controls segment, second-quarter sales increased 0.8% to $229.2 million, and operating income decreased 22.1% to $5.4 million, as compared to the same period a year ago. This segment continues to be impacted by the ongoing weakness in the automotive, residential construction and heavy-duty truck markets. Revenues are expected to increase between 25% and 30% to approximately $6.1 billion. Organic revenue growth is expected to be 5% to 7%, while completed acquisitions and the impact of currency fluctuations are expected to increase reported revenues by approximately 20% to 23% Earnings from continuing operations are expected to increase to $6.00 to $6.20 per share, up 26% to 31%. The primary driver of this improvement is expected to be continued strength in the company’s global infrastructure end markets Free cash flow from continuing operations (cash flow from continuing operations less capital expenditures) is expected to increase to $260 million to $300 million. This performance represents 80% to 90% conversion of expected net income p p Orders In addition to financial results, Parker also reported an increase of 10% in total orders, before the effect of foreign currency and acquisitions, for the quarter ending December 31 compared to the same quarter a year ago. Parker reported the following orders by operating segment: p Orders increased 4% in the Industrial North America segment versus the same quarter a year ago Chris Kearney, president, chairman and CEO said, “Building on SPX’s strong momentum in 2007, we expect to report strong, double-digit revenue and earnings growth in 2008. With a maintained focus on driving organic growth, improving margins, expanding in our key end 48 www.airbestpractices.com http://www.airbestpractices.com

Table of Contents Feed for the Digital Edition of Compressed Air Best Practices - March 2008

Compressed Air Best Practices - March 2008 Contents From the Editor Utility-Air News The Compressed Air Audit of the Month: Saving Energy with Blowers in Canada Do You Provide World-Class Service? Managing Rotary Screw Air Compressors at Midwest Bakery The Difference Between Acfm and Scfm for Proper Vacuum Sizing Best Practices — Multi-Module Process Air Dryers The Vacuum Formation Process in Building Compressed Air Filter Elements Solberg Manufacturing Real World Best Practices: Measuring Pressure Dewpoint in a Compressed Air System Resources for Energy Engineers: Training Calendar & Product Picks Wall Street Watch Advertiser Index Job Market

Compressed Air Best Practices - March 2008

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