Revenue during the quarter dropped 15.61 percent to $395.30 million from $468.40 million in the previous year period. Gross margin for the quarter expanded 290 basis points over the previous year period to 28.84 percent. Total expenses were 99.54 percent of quarterly revenues, up from 94.51 percent for the same period last year. That has resulted in a contraction of 503 basis points in operating margin to 0.46 percent.

Operating income for the quarter was $1.80 million, compared with $25.70 million in the previous year period.

However, the adjusted operating income for the quarter stood at $43.60 million compared to $46.90 million in the prior year period. At the same time, adjusted operating margin improved 102 basis points in the quarter to 11.03 percent from 10.01 percent in the last year period.

Gene Lowe, president and chief executive officer, said "I'm very pleased with the operational execution and the solid margin and cash flow performance of our company. In Q4, our HVAC segment and our Transformer business recorded their highest margins in several years, as operational initiatives continued to drive improvement company-wide. During 2016 we successfully executed on our plan to shift our business mix away from power generation end markets. The result has been a significant improvement in our earnings and cash flow profile, with the sale of the European Power Generation business providing a benefit of approximately 200 basis points to our 2016 adjusted operating income margins. In recognition of this strategic shift, we have renamed our Power segment 'Engineered Solutions'."

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

Cash flow from investing activities was $5.50 million from investing activities during the year as against cash outgo of $54.20 million in the last year.

The company has spent $20.50 million cash to carry out financing activities during the year as against cash outgo of $175.60 million in the last year period.

Working capital drops significantly
SPX Corporation has witnessed a decline in the working capital over the last year. It stood at $51.30 million as at Dec. 31, 2016, down 59.76 percent or $76.20 million from $127.50 million on Dec. 31, 2015. Current ratio was at 1.11 as on Dec. 31, 2016, down from 1.19 on Dec. 31, 2015.

Cash conversion cycle (CCC) has decreased to 30 days for the quarter from 32 days for the last year period. Days sales outstanding went down to 29 days for the quarter compared with 31 days for the same period last year.

Days inventory outstanding has increased to 24 days for the quarter compared with 22 days for the previous year period. At the same time, days payable outstanding was almost stable at 22 days for the quarter, when compared with the previous year period.