{"id":522747,"date":"2021-08-04T06:33:41","date_gmt":"2021-08-04T10:33:41","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/spx-flow-builds-momentum-with-strong-results-in-the-first-half-of-2021\/"},"modified":"2021-08-04T06:33:41","modified_gmt":"2021-08-04T10:33:41","slug":"spx-flow-builds-momentum-with-strong-results-in-the-first-half-of-2021","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/spx-flow-builds-momentum-with-strong-results-in-the-first-half-of-2021\/","title":{"rendered":"SPX FLOW Builds Momentum With Strong Results In The First Half Of 2021"},"content":{"rendered":"
\n

Company Well-Positioned for Growth and Margin Expansion<\/h2>\n

Second Quarter Highlights:<\/h2>\n

– Organic orders increased 16% YoY, with 80\/20 segmentation driving mix improvement<\/h2>\n

– Organic revenue grew 14% with strength across all geographies and both segments<\/h2>\n

– Reported operating margin of 7.6%; Adjusted operating margin of 11.2% up 260 points year-over-year<\/h2>\n

– Structural SG&A productivity plans progressing better than expectations<\/h2>\n

– Balanced capital allocation framework resulted in a quarterly dividend payment, share repurchases, and programmatic M&A<\/h2>\n

– Debt refinancing supports growth strategies, increases flexibility, lowers cash interest and extends maturity<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n CHARLOTTE, N.C.<\/span>, Aug. 4, 2021<\/span> \/PRNewswire\/ —\u00a0SPX FLOW, Inc. (NYSE:FLOW), a leading provider of process solutions for the nutrition, health and precision solutions markets, today reported results for the quarter ended July\u00a03, 2021.<\/p>\n

“Our strong first half results demonstrate significant progress in the strategic plan the Company outlined at the start of 2021. We are demonstrating the ability to deliver organic growth, meaningful margin expansion, and strong free cash flow,” said Marc Michael<\/span>, SPX FLOW President and CEO. “The strategic assessments we conducted over the past two years created clarity on the products, services and markets that allow us to grow profitably with our customers. And the deployment of 80\/20 and our business operating system has supported our strong execution of this strategy, evidenced by growth in our highest margin product categories, investment in new product development and CAPEX, and outstanding progress on our SG&A productivity plans. By instilling the 80\/20 mindset company-wide, we see sustainable margin expansion and increased free cash flow over the coming years.”\u00a0 <\/p>\n

“We are also executing on our commitment to systematically allocate capital within our balanced and disciplined framework,” Michael said. “We have increased investments in high returning CAPEX projects, R&D programs and customer innovation. We closed two acquisitions this year that are great strategic fits and enhance our ability to create profitable growth. \u00a0We are also returning capital to shareholders through our share repurchase program and dividend.”<\/p>\n

“We are proud of the outcomes our solutions makers have delivered through the first half of 2021, and confident we are building the capabilities and culture to deliver on our long-term commitments. The momentum we are seeing in our operating performance is a testament to strong teams, customer focus, high quality offerings and strategic clarity. We are focused on creating value for shareholders through earnings growth, reinvesting in the business, executing strategic acquisitions and distributing excess cash to our shareholders.” concluded Michael. <\/p>\n

\n Outlook:<\/b>\n <\/p>\n

The company anticipates mid-single digit organic revenue growth in 2021 with meaningful improvement in operating margins continuing in the second half of the year. The long-term strategy is to generate higher organic growth driven by 80\/20 segmentation, with improved quality and mix of revenue, supported by a lean and dynamic cost structure. These building blocks, together with continuous manufacturing and supply chain productivity, are leading to an accelerated shift in fundamental performance of the Company. <\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

\n
\n Second Quarter 2021 Consolidated Results (continuing operations unless otherwise noted)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n<\/tr>\n
\n

\n $ millions<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n Q2 2021<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Q2 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Variance<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Organic
Variance<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Backlog<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 608.5<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 546.3<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 11.4<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (1.6)<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Orders<\/span>\n <\/p>\n<\/td>\n

\n

\n 405.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 320.4<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 26.4<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 15.5<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Revenues<\/span>\n <\/p>\n<\/td>\n

\n

\n 381.6<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 308.1<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 23.9<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 14.1<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Operating income<\/span>\n <\/p>\n<\/td>\n

\n

\n 28.9<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 14.2<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 103.5<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n \u00a0\u00a0\u00a0 Margin %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 7.6<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 4.6<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 300 bps<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Adjusted operating income*<\/span>\n <\/p>\n<\/td>\n

\n

\n 42.7<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 26.6<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 60.5<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n \u00a0\u00a0\u00a0 Margin %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 11.2<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 8.6<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 260 bps<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Segment income<\/span>\n <\/p>\n<\/td>\n

\n

\n 50.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 39.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 28.2<\/span>\n <\/p>\n<\/td>\n

\n

\n %<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n Margin %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 13.1<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 12.7<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n %<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 40 bps<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Operating cash flow from continuing operations<\/span>\n <\/p>\n<\/td>\n

\n

\n 28.6<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 24.7<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Adjusted free cash flow from continuing operations*<\/span>\n <\/p>\n<\/td>\n

\n

\n 30.7<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 23.6<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Income from continuing operations, net of tax<\/span>\n <\/p>\n<\/td>\n

\n

\n 11.4<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 6.5<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Adjusted EBITDA from continuing operations*<\/span>\n <\/p>\n<\/td>\n

\n

\n 49.5<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 32.7<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n
\n\n\n\n
\n \n <\/td>\n<\/tr>\n
\n

\n
\n Note: The commentary below is compared to the prior-year period. All comments refer to continuing operations unless otherwise noted. During the quarter ended July 3, 2021, we renamed our Industrial segment as the Precision Solutions segment, with no changes to the composition of the segment.<\/i>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n