CHARLOTTE, N.C. (AP) -- SPX Corp. said its first-quarter net income fell 9 percent, as lower demand for power transformers weighed on the industrial production company's revenue.
The company, which makes a variety of products from cooling systems for power plants to food processing components, said it expects its recovery to lag the broader economy.
But its first-quarter results topped analyst estimates and the company raised the lower end of its full-year earnings forecast.
Shares rose 5 cents to $68.11 in midday trading after rising as high as $69.54 earlier in the session.
SPX said its net income for the three months ended April 3 fell to $22.1 million, or 44 cents per share, from $24.4 million, or 48 cents per share, in the same period a year ago.
The quarterly results included a charge of 12 cents per share related to the recently passed health care overhaul. Adjusted income from continuing operations was 49 cents per share. On that basis, analysts surveyed by Thomson Reuters expected 26 cents per share, on average.
Revenue fell 6.4 percent to $1.09 billion from $1.16 billion a year ago. Analysts expected $1.08 billion in revenue.
The company attributed the lower revenue for weaker demand for power transformers, as well as solar crystal growers and broadcast equipment.
"Continued softness in our transformer business weighed on our first quarter results, which remain below 2009 levels, and we maintain the view that recovery in our mid-to-late cycle businesses will lag the broader economy," CEO Christopher J. Kearney said in a statement.
However, the company revised its full-year guidance to between $3 and $3.30 per share. Previously it was calling for $2.90 to $3.30 per share.
Analysts expect $3.16 per share for the year.