SPX Corporation 3rd Quarter 2008 Results

2008 Third Quarter Results

October 29, 2008

PAGE 2

Forward-Looking Statements

Certain statements contained in this presentation that are not historical facts, including any statements as to future market conditions, results of operations and financial projections, are forward-looking statements and are thus prospective. These forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.

Particular risks facing SPX include economic, business and other risks stemming from our international operations, legal and regulatory risks, cost of raw materials, pricing pressures, pension funding requirements, integration of acquisitions and changes in the economy. More information regarding such risks can be found in SPX’s SEC filings.

Although SPX believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. In addition, estimates of future operating results are based on the company’s current complement of businesses, which is subject to change.

Statements in this presentation are only as of the time made and SPX does not intend to update any statements made in this presentation except as required by regulatory authorities.

This presentation includes non-GAAP financial measures. A copy of this presentation, including a reconciliation of the non-GAAP financial measures with the most comparable measures calculated and presented in accordance with GAAP, is available on our website at www.spx.com.

PAGE 3

Introduction

PAGE 4

Changing Economic Environment

Recent Foreign Exchange Fluctuations Have Impacted SPX’s 2008 Outlook;Too Early to Predict How Economic Changes Will Impact SPX Customers in 2009

Banking failures and consolidations have impacted credit availability for many companies

Global credit crisis has created an uncertain economic environment…

…as a result, capital budgets for 2009 are uncertain

Foreign exchange rates have changed dramatically, impacting SPX’s 2008 outlook and backlog:

– % decline from June through October:

• Euro: (18%)

• British Pound: (18%)

• Zar: (28%)

-40%

-30%

-20%

-10%

0%

10%

Jun-08 Jul-08 Aug-08 Sep-08 Oct-08

EUR GBP ZAR

% Value Declinevs. U.S. Dollar

PAGE 5

Q3 Financial Highlights

Q3 2007($ millions, except per share data)

GAAP Earnings Per Share

Adjusted Earnings Per Share (1)

Revenue

Segment Income Margin

Free Cash Flow

$1.74 $2.01 +16%

$1.39 $1.66 +19%

$1,172 $1,510 6.5% organic growth

14.2% 13.8% 120 points of margin expansion excluding APV

$30 $71 Improved operating income and working capital

6.5% Organic Revenue Growth;19% Adjusted Earnings Growth

Q3 2008 2008 Comments

(1) Q3 2007 EPS excludes $0.35 of tax benefits, Q3 2008 excludes $0.47 of tax benefits and a $0.11 legal charge

Note: Data from continuing operations; See appendix for non-GAAP reconciliations

PAGE 6

YTD Financial Highlights

($ millions, except per share data)

GAAP Earnings Per Share

Adjusted Earnings Per Share (1)

Revenue


6% Organic Revenue Growth;45% Adjusted Earnings Growth

$3.43 $4.86 +42%

$3.10 $4.49 +45%

$3,361 $4,426 6% organic growth

12.4% 13.1% 240 points of margin expansion excluding APV

YTD 2007 YTD 2008 2008 Comments

(1) YTD 2007 EPS excludes $0.33 of tax benefits, YTD 2008 excludes $0.47 of tax benefits and a $0.11 legal charge


PAGE 7

SPX Global End Markets

General Industrial

13%

Global Infrastructure

53%

Sanitary14%

Tools & Diagnostics

20%

Targeting Q4 Organic Growth Between 8% and 10%;Tools & Diagnostics Declining

Pro Forma Revenueby End Market

Note: 2007 data from continuing operations, pro forma for APV acquisition

Power & Energy

33%

HVAC, Telecom,

Other20%

Q4 2008E OrganicGrowth Expectations

Power & Energy

Sanitary

General Industrial

HVAC, Telecom, Other

Tools & Diagnostics

Mid-Single DigitGrowth

Single Digit DeclineFlatDouble Digit

GrowthROW4%

North America49%

Asia-Pacific15%

Europe32%

Pro Forma Revenueby Geography

(Food, Beverage, Dairy, Pharmaand Personal Care Markets)

PAGE 8

Backlog Development

Backlog Decline Primarily Driven by Foreign Exchange Rate Changes;Total Backlog Down ~$120m or 3% During Q3

($ millions)

$1,401 $799 $696

$2,003 $782 $721

$2,077 $796 $648

$2,002 $763 $648

$0 $1,000 $2,000 $3,000

Q1 '08

Q2 '08

Q3 '08*

Q3 '08

Thermal Flow Industrial

Q3 ending backlog at $3.6b, down $120m or 3% from Q2:

– Foreign currency fluctuations reduced the backlog value by $108m

– Industrial backlog down 10%:• 28% organic growth in Q3• Distribution transformer orders

slowing

~60% of annual revenue from short-cycle businesses

No major contract cancellations

Last 3 Quarters Ending Backlog

*Q3 2008 backlog excluding the impact of foreign currency fluctuations

PAGE 9

Recent Strategic Actions

Continue to Execute Long-Term Strategy; Consistent Approach to Capital Allocation

Discontinued 2 non-core product lines:– Flow product line: ~$50m in annual sales– Test and Measurement product line: ~$20m in annual sales

Signed definitive agreement to sell LDS, our vibration testing and data acquisition equipment business, for ~$102m:

– Expect to complete the sale by the end of 2008

Acquired Autoboss:– Chinese-based manufacturer of diagnostic tools and equipment

– ~$10m in annual sales

APV integration progressing:– Targeting headcount reduction of ~500 people

Announced 10b5-1 share repurchase plan:– Plan becomes active on November 3, 2008 and is designed to facilitate the

repurchase of up to 3 million shares

PAGE 10

Financial Position

12/31/07 9/27/08

Cash $354 $466

Other Current Assets 2,362 2,540

Total Assets 6,237 6,523

Total Debt $1,569 $1,531

Other Current Liabilities 1,837 1,842

Shareholders' Equity 2,006 2,361

$466m of Cash on Hand at September 27th;Gross Leverage Ratio Within Target Range of 1.5x to 2.0x EBITDA

($ millions)Key Balance Sheet

Accounts at,

2.3x

1.9x

1.8x1.4x

Q4 2007 Q3 2008

Net Leverage Gross Leverage

Debt to Capital

Debt to EBITDA (1)

44.0%

39.0%

Q4 2007 Q3 2008

(1) Consolidated leverage ratios; Net and Gross Debt to EBITDA as defined in the credit facility

PAGE 11

Q3 2008 Consolidated Results

PAGE 12

Q3 Earnings Per Share

$1.74

$2.01

$1.39

$1.66

Q3 2007 Q3 2008

Adjusted EPS GAAP EPS

19% Adjusted Earnings Growth Driven Primarily by Increased Segment Income

Q3 Earnings Per ShareFrom Continuing Operations

Q3 2007 Adjusted EPS (1) $1.39

Segment Income +$0.53

Tax Rate ($0.09)

Interest Expense ($0.06)

Pension Expense ($0.05)

Other Items ($0.05)

Q3 2008 Adjusted EPS (1) $1.66

19%19%

Year-Over-Year Changes inAdjusted Earnings Per Share

(1)

(1) Q3 2007 EPS excludes $0.35 of tax benefits, Q3 2008 excludes $0.47 of tax benefits and a $0.11 legal charge


16%16%

PAGE 13

Q3 Financial Results

$1,172

$1,510

Q3 2007 Q3 2008

$167

$209

Q3 2007 Q3 2008

6.5% Organic Growth; 120 Points of Segment Margin Expansion Excluding APV Dilution

Revenue($ millions)

29%29%

20% acquisition growth

6.5% organic growth

3% benefit from foreign currency

25% increase in segment income

120 points of margin expansion excluding the dilutive impact of the APV acquisition

Segment Income& Margin

Note: Data from continuing operations; see appendix for non-GAAP reconciliations

14.2% 13.8%

25%25%

15.4%APV Dilution:

160 pts

PAGE 14

Segment Analysis

PAGE 15

Flow Technology: Q3 Financial Results & Q4 Targets

$256

$493

Q3 2007 Q3 2008

8% Organic Growth in Q3;APV Q3 Margin Dilution: 550 Points

Q3 Revenue and Segment Income Margins

($ millions)

92%92%

11.3%

17.2%


83% acquisition growth from APV:APV margin dilution: 550 points

8% organic growth:

Strong power, oil and gas and dehydration sales

Shipping delays caused by Hurricane

APV acquisition expected to drive top-line growth:

Cost reduction actions expected to benefit margins

Expect mid-single digit organic growth

Negative foreign currency impact

Q4E Revenue and Segment Income Margins

$311

+58% to 61%

Q4 2007 Q4 2008E

14.2% to 14.5%

16.4%

PAGE 16

$422 $437

Q3 2007 Q3 2008

13.4%12.0%

Thermal Equipment and Services: Q3 Financial Results & Q4 Targets

2 Percent Organic Revenue Decline in Q3;Targeting Double Digit Organic Revenue Growth in Q4

($ millions)

4%4%

2% organic decline:Uneven nature of infrastructure projects

Lower China sales

28% organic growth in Q3 2007

5% foreign exchange benefit

Lower mix of higher margin dry cooling sales

Targeting double-digit organic growth


Expect 60 to 110 points of margin expansion




$438

+18% to 22%

Q4 2007 Q4 2008E

12.0%

12.6% to13.1%

PAGE 17

Test and Measurement: Q3 Financial Results & Q4 Targets

$245$260

Q3 2007 Q3 2008

US Tools and Diagnostics Market Remains Challenging;Expect Double-Digit Revenue Decline in Q4

($ millions)

6%6%

9.0%

11.7%

7% acquisition growth: JCD & Matra

3% organic decline:– Weak U.S. market volume

270 points of margin expansion:

– $7m write-off in Q3 2007

Challenging US tools and diagnostics market

Reduced volume of OE programs in Q4 2008 vs. Q4 2007





$315

(13%) to (17%)

Q4 2007 Q4 2008E

13.0%

10.2% to 10.5%

PAGE 18

Industrial Products and Services: Q3 Financial Results & Q4 Targets

$249

$320

Q3 2007 Q3 2008

28% Organic Revenue Growth and22% Segment Income Margins in Q3

($ millions)

29%29%

22.0%

17.7%

28% organic growth:

Strong sales for transformers and crystal growers

60% increase in segment income

430 points of margin expansion




$253

+13% to 17%

Q4 2007 Q4 2008E

19.5% to 19.7%

20.5%

Targeting double-digit organic growth in Q4

PAGE 19

2008 Q4 Targets

14% to 20% Earnings Growth Expected in Q4

($ millions, except per share data)Q4 2008E

Revenue $1,316 +18% to 22% +8% to 10%

Segment Income $ $196 $220 to $230

Segment Income % 14.9% 14.1% to 14.3% 14.8% to 15.0%

EPS $1.67 (1) $1.90 - $2.00 (1) Adjusted EPS, see appendix for reconciliation

Note: Data from continuing operations

Q4 2007

+12% to 17%+12% to 17%

(60) to (80) bps(60) to (80) bps

+14% to 20%+14% to 20%

Excluding APV

Organic Growth

PAGE 20

2008 Full Year Segment Targets

IndustrialIndustrial

FlowFlow

ThermalThermal

Test & Measurement

Test & Measurement

July 30th

FY Targets

Revenue Growth

Operating Margins

Revenue Growth

Operating Margins

Revenue Growth

Operating Margins

Revenue Growth

Operating Margins

October 29th

FY Targets

Note: All data from continuing operations

+88% to 89%

12.0% to 12.2%

+91% to 93%

11.8% to 12.3%

+10% to 11%

11.7% to 11.9%

+11% to 13%

10.6% to 11.1%

Primary Drivers for Change

+3% to 4%

10.5% to 10.7%

+9% to 11%

10.5% to 11.0%

+19% to 20%

20.6% to 20.8%

+18% to 20%

20.2% to 20.7%

FX fluctuations

Discontinued product line

FX fluctuations

Strong Q3 margin execution

FX fluctuations,

Softness in U.S. market

Discontinued product line

Strong Q3 operating execution

Targets Have Been Adjusted to Reflect Foreign Currency Fluctuations, Discontinued Operations and Q3 Performance

PAGE 21

2008 Financial Targets and Updated Guidance

Targeting 7% to 8% Organic Growth and More Than 30% Earnings Growth in 2008

2008 Target Range

Revenue


Excluding APV

Adjusted Earnings Per Share

Free Cash Flow

Capital Spending


Comments+28% to 29% Organic: 7% to 8%

13.2% to 13.4% +10 to 30 bps

14.6% to 14.8% +150 to 170 bps

$6.40 to $6.50 32% to 34%

$300 to $320 85% to 90% of NI

$140 to $150 Capacity, Lean & IT Investments

($ millions, except per share data)

PAGE 22

2008 Guidance

Updated 2008 EPS Guidance Range of $6.40 to $6.50;Free Cash Flow Guidance Range Unchanged at $300 to $320

2008 EPS Guidance

Previous:

$6.40 to $6.60

Current:$6.40 to $6.50


Potential Upsides/Downsides

Additional foreign currency fluctuations

Short-cycle end market developments

Project timing

APV integration

Effective tax rate change

PAGE 23

Free Cash Flow, Debt Structure and Liquidity

PAGE 24

Free Cash Flow

$313

$300 to$320

2007 2008E

Strong Q4 Expectations Consistent with Last Year

1st Nine MonthsFree Cash Flow

($ millions)

Note: See appendix for non-GAAP reconciliations

Full YearFree Cash Flow

(1)

(1) Includes $30m to $50m of cash restructuring for the APV acquisition and elevated capital spending of $140m to $150m

$88

$68

YTD Sept. 2007 YTD Sept. 2008

PAGE 25

Debt Structure

Minimal Debt Repayment Requirements for the Next 2 Years

($ millions)

$19$75 $75

$190

$486

$28

$500

Q42008

2009 2010 2011 2012 2013 2014

Outstanding Debt (1)

(1) As of 9/27/2008

Term loan $712

Domestic revolver $130

Global revolver $0

7.625% Senior Notes $500



A/R Securitization (2) $70

Other indebtedness $69

Total debt $1,531

Debt Maturity Schedule

Part of GlobalCredit Facility

(2) One year term

PAGE 26

Projected Liquidity

Over $800m of Projected Liquidity After Completing Planned Share Repurchases

Cash on hand at 9/27/2008 $466

Expected cash proceeds from the sale of LDS 102

2008E free cash flow remaining 242Available, committed credit lines 400

Total Projected Availability $1,210

Remaining dividend payments ($15)

2008 minimum remaining debt payments (19)

Working capital management needs (200)

Projected Liquidity $976

Repurchase 3m shares (based on 10/28 closing stock price of $43.88) ($132)

Projected Liquidity after Share Repurchases $844

Note: Our ability to access these sources under our various facilities may be limited by the terms of our credit facility and by certain tax regulations that pertain to cash in overseas locations

($ millions)

Expected Sources

RequiredUses

PlannedUse

Amount

PAGE 27

Summary

PAGE 28

Current SPX Situation

Exceeded Q3 2008 earnings per share guidance

Targeting growth in Q4 2008:– Targeting 8% to 10% organic growth

– Targeting 14% to 20% earnings growth

Solid financial position and liquidity:– Expect to repurchase 3m shares of SPX stock

– Significant flexibility in uncertain economic environment

Reducing cost through APV integration

Evaluating and preparing for 2009

Carefully Monitoring Risks In Uncertain Economic Environment

PAGE 29

Questions

PAGE 30

Appendix

PAGE 31

Balance Sheet

($ millions) 12/31/07 9/27/08 Change

Cash $354 $466 $112

Other Current Assets 2,362 2,540 178

Goodwill 1,930 1,921 (9)

Other Assets 1,591 1,595 4

Total Assets $6,237 $6,523 $286

Other Current Liabilities $1,838 $1,842 $4

Total Debt 1,568 1,531 (37)

Long-Term Liabilities 825 790 (35)

Shareholders' Equity 2,006 2,361 355Total Liabilities and Shareholders' Equity

$6,237 $6,523 $286

Debt / Capital Ratio 44% 39%LTM EBITDA (1) $663 $772Net Debt / EBITDA (1) 1.83x 1.35xGross Debt / EBITDA (1) 2.29x 1.89x

(1) As defined in the SPX credit facility

PAGE 32

Full Year Financial Model($ millions, except per share data)

(1) Adjusted EPS, includes businesses discontinued in 2008, see appendix for reconciliationNote: Data from continuing operations

2008E Mid-Point EPS Guidance is $6.45 Per Share

(1)

2007

2008E Guidance Mid-Point

Revenue $4,677 $6,000Segment Income Margin 13.1% 13.3%

Corporate overhead (95) (107) Pension / PRHC (44) (37) Stock-based compensation (41) (43) Special charges (5) (16) Operating Income $428 $598 % of revenues 9.1% 10.0%

Equity Earnings in J/V 40 46 Other Income/(Expense) (5) (7) Interest Expense (71) (107) Pre-Tax Income from Continuing Operations $392 $530Tax Provision (126) (178) Income from Continuing Operations $266 $352

Tax Rate 32% 34%Weighted Average Dilutive Shares Outstanding 56 55

EPS from continuing operations 4.73$ 6.45$ EPS from businesses discontinued in 2008 0.12$ Adjusted EPS 4.85$

Adjusted EPS Guidance Range $6.40 to $6.50

EBITDA 663$ 800$

PAGE 33

Pro Forma APV Calculation: Q3 2008

Excluding APV APV

Including APV

SPX Consolidated Q3 2008Revenue $1,298 $212 $1,510Segment Income $200 $9 $209Segment Margin 15.4% 4.2% 13.8%

Flow Technology Q3 2008Revenue $282 $212 $493Segment Income $47 $9 $56Segment Margin 16.7% 4.2% 11.3%


PAGE 34

Re-Stated Quarterly Segment Data


Fourth Quarter Full Year2007 2008 2007 2008 2007 2008 2007 2007

Flow Technology Revenue $237 $492 $266 $535 $256 $493 $311 $1,070 Segment Income $37 $47 $44 $70 $44 $56 $51 $175 Segment Margins 15.4% 9.5% 16.5% 13.1% 17.2% 11.3% 16.4% 16.4%

Test and Measurement Revenue $236 $270 $284 $320 $245 $260 $315 $1,080 Segment Income $24 $24 $32 $37 $22 $30 $41 $118 Segment Margins 10.0% 8.9% 11.2% 11.4% 9.0% 11.7% 13.0% 11.0%

Thermal Equipment and Services Revenue $313 $347 $388 $409 $422 $437 $438 $1,561 Segment Income $16 $36 $38 $46 $57 $52 $52 $163 Segment Margins 5.2% 10.5% 9.8% 11.1% 13.4% 12.0% 12.0% 10.4%

Industrial Products and Services Revenue $212 $267 $253 $276 $249 $320 $253 $966 Segment Income $26 $54 $34 $57 $44 $70 $52 $156 Segment Margins 12.3% 20.3% 13.5% 20.5% 17.7% 22.0% 20.5% 16.2%

First Quarter Second Quarter Third Quarter

PAGE 35

Non-GAAP Reconciliations

PAGE 36

Adjusted Q3 Earnings Per Share

Q3 2007

Q3 2008

GAAP EPS from continuing operations $1.74 $2.01

Q3 Tax Benefits (0.35) ($0.47)

Q3 Legal Settlement (Other Expense) $0.11

Adjusted EPS from continuing operations $1.39 $1.66


Adjusted EPS Presented Consistent with 2008 EPS Guidance

PAGE 37

Adjusted YTD Earnings Per Share

Sept. 2007

Sept. 2008


Q3 Tax Benefits (0.33) (0.47)

Q3 Legal Settlement (Other Expense) 0.11


Nine Months Ended,


Adjusted EPS Presented Consistent with 2008 EPS Guidance

PAGE 38

Adjusted Full Year Earnings Per Share


2007 2008E


Q3 Tax Benefits (0.34) (0.47)

Q3 Legal Settlement (Other Expense) 0.11

Q4 Tax Benefits (0.25)

Q4 Asset Impairment 0.05

Q4 Legacy Legal Matters (Corporate Expense) 0.06


PAGE 39

Q3 2008 Organic Revenue Growth Reconciliation

Net Revenue Acquisitions/ Organic Growth Divestitures Growth

Flow 92.4% 83.1% 1.0% 8.3%

Test 6.1% 7.4% 1.8% -3.1%

Thermal 3.5% 0.0% 5.3% -1.8%

Industrial 28.6% 0.0% 0.4% 28.2%

Consolidated 28.8% 19.7% 2.6% 6.5%

Foreign Currency

Quarter Ended September 27, 2008


PAGE 40

YTD 2008 Organic Revenue Growth Reconciliation

Net Revenue Acquisitions/ Organic Growth Divestitures Growth

Flow 100.1% 86.9% 3.3% 9.9%

Test 11.1% 10.4% 3.7% -3.0%

Thermal 6.2% 0.0% 6.1% 0.1%

Industrial 21.0% 0.0% 1.1% 19.9%

Consolidated 31.7% 22.0% 3.9% 5.8%

Foreign Currency

YTD September 27, 2008


PAGE 41

Q3 Free Cash Flow Reconciliation to GAAP Financial Measures

($ millions) Q3 2007 Q3 2008

Net cash from continuing operations 48$ 104$ Capital expenditures (19)$ (33)$

Free cash flow from continuing operations 30$ 71$

Free Cash Flow Reconciliation(unaudited)

SPX Corporation and Subsidiaries

PAGE 42

Nine Months Free Cash Flow Reconciliation to GAAP Financial Measures

($ millions) Nine Months Ended September

2007

Nine Months Ended September

2008

Net cash from continuing operations $135 $147Capital expenditures ($47) ($79)

Free cash flow from continuing operations $88 $68



PAGE 43

Full Year Free Cash Flow Reconciliation to GAAP Financial Measures

($ millions)2006 2007


Free cash flow from continuing operations (7)$ 313$ Interst paid on LYONS repurchase 84$ Taxes paid on LYONs tax recapture 91$

Adjusted free cash flow from continuing operations 168$

FCF from operations discontinued in 2007 15$

Adjusted free cash flow as reported 2/28/2007 183$



PAGE 44

2008E Free Cash Flow Reconciliation to GAAP Financial Measures

($ millions)


Free cash flow from continuing operations 300$ 320$

2008E Guidance Range



PAGE 45

EBITDA Reconciliations

Note: EBITDA as defined in the credit facility

($ millions) 2006 2007

LTM Sept. 2008

Revenues $4,313 $4,822 $5,742

Net Income $171 $294 $381Income tax provision (benefit) 56 90 127Interest expense 50 77 110Income before interest and taxes $277 $461 $618

Depreciation and intangible amortization expense 90 83 102EBITDA from continuing operations $367 $544 $720

Adjustments:Non-cash compensation expense 38 41 43Extraordinary non-cash charges 41 14 (9)Extraordinary non-recurring cash charges 27 7 11Excess of JV distributions over JV income (12) 2 3Loss (Gain) on disposition of assets 56 4 (14)Pro Forma effect of acquisitions and divestitures 53 20Other 8 0

Adjusted LTM EBITDA from continuing operations $525 $663 $772

PAGE 46

Debt Reconciliations

($ millions) 12/31/2007 9/27/2008

Short-term debt 254$ 260$ Current maturities of long-term debt 79 76 Long-term debt 1,235 1,194

Gross Debt 1,568$ 1,531$

Less: Puchase card program and extended A/P programs (58)$ (59)$

Adjusted Gross Debt 1,510$ 1,472$

Less: Cash in excess of $50m (304)$ (416)$

Adjusted Net Debt 1,206$ 1,055$

Note: Debt as defined in the credit facility

PAGE 47

Economy & Finance

SPX Corporation 3rd Quarter 2008 Results