Revenue during the quarter dropped 5.55 percent to $340.60 million from $360.60 million in the previous year period. Gross margin for the quarter expanded 94 basis points over the previous year period to 25.87 percent. Total expenses were 94.77 percent of quarterly revenues, up from 92.21 percent for the same period last year. That has resulted in a contraction of 257 basis points in operating margin to 5.23 percent.

Operating income for the quarter was $17.80 million, compared with $28.10 million in the previous year period.

However, the adjusted operating income for the quarter stood at $23.70 million compared to $18.70 million in the prior year period. At the same time, adjusted operating margin improved 177 basis points in the quarter to 6.96 percent from 5.19 percent in the last year period.

Gene Lowe, president and chief executive officer, remarked, "I’m very pleased with our company’s first quarter results which included margin expansion across all three segments and solid free cash flow performance. Strategic changes in the operating model of our process cooling business, within our Engineered Solutions segment, were an important driver of profit growth.” Mr. Lowe continued, “With a solid start to the year, we remain on track to achieve our full-year 2017 guidance and attain our leverage and liquidity targets. Looking forward, we remain confident in our ability to deliver sustained double-digit earnings growth over the next several years."

For financial year 2017, SPX Corporation projects revenue to be in the range of $1,300 million to $1,400 million. The company projects adjusted operating income to grow in the range of 8 percent to 9 percent. It company forecasts diluted earnings per share to be in the range of $1.55 to $1.70 on adjusted basis.

The company has spent $2.20 million cash to meet investing activities during the quarter as against cash inflow of $43.90 million in the last year period.

The company has spent $5.10 million cash to carry out financing activities during the quarter as against cash inflow of $14.40 million in the last year period.

Cash and cash equivalents stood at $92.70 million as on Apr. 01, 2017, down 5.31 percent or $5.20 million from $97.90 million on Apr. 02, 2016.

Working capital drops significantly
SPX Corporation has witnessed a decline in the working capital over the last year. It stood at $60.20 million as at Apr. 01, 2017, down 37.62 percent or $36.30 million from $96.50 million on Apr. 02, 2016. Current ratio was at 1.13 as on Apr. 01, 2017, down from 1.17 on Apr. 02, 2016.

Cash conversion cycle (CCC) has decreased to 53 days for the quarter from 97 days for the last year period. Days sales outstanding went down to 80 days for the quarter compared with 91 days for the same period last year.

Days inventory outstanding has decreased to 29 days for the quarter compared with 62 days for the previous year period. At the same time, days payable outstanding was almost stable at 56 days for the quarter, when compared with the previous year period.