Announcing preliminary financial results for the third quarter ended 1 October 2016, SPX Flow said that on an adjusted basis, operating income in the third quarter is expected to be just below the guidance range of US$35 million–US$45 million.
“Our preliminary third quarter results reflect a deceleration of short cycle Industrial orders at the outset of Q3 and delayed shipments in our Power and Energy segment. These challenges were partially offset by solid progress on cost savings achieved in conjunction with our global realignment program,” explained Marc Michael, president and CEO of SPX Flow Inc.
“During the quarter, orders and backlog declined sequentially by 6% and 2%, respectively, primarily reflecting lower levels of original equipment orders in energy markets and lower orders for systems in food and beverage markets. In light of our Q3 preliminary results and order trends, we are currently reassessing our fourth quarter expectations,” said Michael.
SPX Flow plans to provide revised guidance for the fourth quarter and full year 2016 when it releases its third quarter earnings on 2 November 2016.