SPX Corporation 2nd Quarter 2008 Results

2008 Second Quarter Results

July 30, 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

Q2 Financial Highlights

Q2 2008

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

Comments($ millions, except per share data)

Earnings Per Share

Revenue

Organic Growth

Segment Income Margin

Free Cash Flow

$1.70 +37%

$1,556 +29%

4% Strong Process Equipment Demand

13.4% +100 points

$22 On track operationally

37% Earnings Growth in Q2 2008;Raising 2008 Full Year EPS Guidance 20 Cents to $6.40 to $6.60

PAGE 5

Q2 Financial Results

$1,208

$1,556

Q2 2007 Q2 2008

$149

$209

Q2 2007 Q2 2008

4% Organic Growth;100 Points of Segment Margin Expansion

Revenue($ millions)

29%29%

21% acquisition growth

4% organic growth

5% benefit from foreign currency

40% increase in segment income

100 points of margin expansion:+ Power market strength

+ Lean and Supply-Chain improvements

– APV Dilution

Segment Income& Margin

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

12.4%

13.4%

40%40%

PAGE 6

$1.24

$1.70

Q2 2007 Q2 2008

Q2 Earnings Per Share

Improved Operating Performance and 2007 Acquisitions Were the Primary Drivers of Increased Earnings

Earnings Per Share

37%37%

Note: Data from continuing operations

Q2 2007 EPS $1.24

Segment income +$0.74

Interest expense ($0.15)

Tax rate ($0.15)

Other items $0.02

Q2 2008 EPS $1.70

Year-Over-Year Changes toEarnings Per Share

PAGE 7

Balance Sheet

12/31/07 6/30/08

Cash $354 $420

Other Current Assets 2,342 2,607

Total Assets 6,237 6,645

Total Debt $1,569 $1,596

Other Current Liabilities 1,837 1,936

Shareholders' Equity 2,006 2,312

Balance Sheet Generally In-Line with 12/31/2007;Gross Leverage Ratio at the Top End of Target Range

($ millions)Key Balance Sheet

Accounts at,

2.3x2.0x

1.8x 1.5x

Q4 2007 Q2 2008

Net Leverage Gross Leverage

Debt to Capital

Debt to EBITDA (1)

44.0%41.0%

Q4 2007 Q2 2008

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

PAGE 8

SPX Global End Markets

Order Trends Remain Positive in Most Key End Markets

2007 Pro Forma Revenue by End Market

Note: Data from continuing operations, pro forma for APV acquisition

General Industrial

13%

Global Infrastructure

53%

Sanitary14%

Tools & Diagnostics

20%

Power & Energy

33%

HVAC, Telecom,

Other20%

2008E Market Trends

Power & Energy

Sanitary

General Industrial

HVAC, Telecom, Other

Tools & Diagnostics

Double-Digit Growth

Mid/HighSingle Digit

Growth

Flat /Modest Decline

PAGE 9

2008 First Half Overview

63% Year-Over-Year Earnings Growth in 1H 2008;2H 2008 Focus on Operating Execution and APV Integration

1H 2008 Revenue and Segment Margins

Organic growth

Free Cash Flow conversion

APV integration

Capital allocation

2H 2008Key Initiatives

$2,223

$2,949

1st Half 2007 1st Half 2008

11.4%

12.6%

33%33%

($ millions)

PAGE 10

2008 Full Year Guidance

Raising 2008 EPS from Continuing Operations Guidance Range 20 Cents to $6.40 to $6.60

Previous Guidance Range

2008E EPS $6.20 to $6.40 $6.40 to $6.60 +$0.20

2008E Free Cash Flow: $260 to $300 $300 to $320 +$30

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

UpdatedGuidance Range

Mid-Point Increase

($ millions, except per share data)

PAGE 11

Q2 Segment Analysis

PAGE 12

Flow Technology: Q2 Financial Results

$278

$547

Q2 2007 Q2 2008

Strong Global Demand for Process Equipment;Core Margin Expansion Offset by APV Dilution

Q2 Revenue($ millions)

97%97%

$45

$70

Q2 2007 Q2 2008

16.0%17.4%

12.8%10.8%

Excluding APV

Including APV

Q2 Segment Income & Margin


APV Dilution:~460 points

79% acquisition growth from APV

14% organic growth:Demand in power, oil and gas and sanitary markets

4% foreign exchange benefit


140 points of margin expansion in core business

APV operating profit: 6%

PAGE 13

Flow Technology: Full Year Analysis

$1,121

2007 2008E

Targeting 7% to 8% Organic Growth in 2008

Full Year Revenue &Segment Margin

($ millions)

15.8%

Excluding APV Including APV

11.8% to 12.3%

+ 91% to 93%

16.5% to 17.0%

APV Revenue:$885 to $900m

APV Dilution:~470 points


Key 2008 Drivers:

APV Integration

Global energy infrastructure development:

Power, oil & gas, sanitary

Leverage on organic growth

11.3%

PAGE 14

$38

$46

Q2 2007 Q2 2008

9.7%11.1%

Thermal Equipment and Services: Q2 Financial Results

$388

$409

Q2 2007 Q2 2008

21% Increase in Segment Income;140 Points of Segment Margin Expansion

($ millions)

6%6%

Q2 Revenue Q2 Segment Income & Margin

2% organic decline:Increased local Chinese competitors

Uneven nature of infrastructure projects


Backlog increased 43% to $2b


140 points of margin expansion:

Improved contract execution

Operating improvements across all the product lines


PAGE 15

Thermal Equipment and Services: Full Year Analysis

$1,561

2007 2008E

Expect 11% to 13% Total Revenue Growth;Expect Margins Between 10.6% and 11.1%


($ millions)

10.4%10.6% to

11.1%

+11 to 13%


Key 2008 Drivers:

Global demand for power and energy infrastructure

$100m Qatar contract:Dry cooling system for Linde/Shell Pearl petrochemical complex

Majority of work expected to be completed in 2008

Discipline on project bids

Operating improvements

PAGE 16

Test and Measurement: Q2 Financial Results

$289

$324

Q2 2007 Q2 2008

Growth in Europe and Integration Actions,Offset Soft U.S. Aftermarket Demand

($ millions)

12%12%

$33

$37

Q2 2007 Q2 2008

11.3% 11.4%


11% acquisition growth:

JCD & Matra

3% organic decline



10 points of margin expansion:

+ Strong European OEM

+ U.S. manufacturing integration

– Reduced U.S. aftermarket volume


PAGE 17

Test and Measurement: Full Year Analysis

$1,098

2007 2008E

Challenging N.A. Aftermarket in 2008;Focused on Long-Term Strategy for Global Expansion


($ millions)

10.9%10.5% to

11.0%

+9 to 11%


Key 2008 Drivers:

Integration of European acquisitions

North American aftermarket remains challenging

Focus on long-term strategy:

Global expansion into Europe and Asia

Integration of U.S. manufacturing

New product development

PAGE 18

Industrial Products and Services: Q2 Financial Results

$253

$276

Q2 2007 Q2 2008

Strong Demand and Margin Expansion Continued in Q2

($ millions)

9%9%

$34

$57

Q2 2007 Q2 2008

20.5%

13.5%


8% organic growth

Strong demand for Broadcast and Solar equipment

Midwest flooding caused timing delays on transformer shipments


700 points of margin expansion:Pricing

Leverage on organic growth

Lean and supply chain improvements


PAGE 19

Industrial Products and Services: Full Year Analysis

$966

2007 2008E

Strong U.S. Demand for T&D Infrastructure Driving Margin Expansion and Double-Digit Organic Growth


($ millions)

16.2%

20.2% to 20.7%

+18% to20%


Key 2008 Drivers:

U.S. investment in transmission and distribution infrastructure

Strong backlog

Positive growth in aerospace, broadcast, hydraulic tools and solar equipment

Pricing strength

Lean process improvements and capacity expansion

PAGE 20

Free Cash Flow and Capital Allocation

PAGE 21

Free Cash Flow

Improved 1H Free Cash Flow Performance from Base Businesses,Offset by Interest and Tax Payments, APV and Capital Investments

1H Free Cash Flow($ millions)

Note: See appendix for non-GAAP reconciliations

Improved free cash flow performance from base businesses

Increased capital spending

APV working capital investments

Increased interest and tax payments

$25m reclass of employee income tax withholding on vested restricted stock awards from operating to financing

$23m related to Q1

($37)

$62

($3)

1H 2006 1H 2007 1H 2008

1H 2008 Key Drivers

PAGE 22

Free Cash Flow

$287

$251

$303m to

$323m

2H 2006 2H 2007 2H 2008E

Strong Second Half Expectations Consistent with Prior Years;On Track for 2008 Free Cash Flow Target of $300m to $320m

2H Free Cash Flow

($ millions)

Note: See appendix for non-GAAP reconciliations

Full Year Free Cash Flow

$250

$313

$300m to

$320m

2006 2007 2008(1) (1) (2)

(1) Excludes a $67m tax payment made in Q4 2006

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

PAGE 23

Capital Allocation Methodology

6/30/2008 Gross Debt to EBITDA at 2.0x

Gross Debt to EBITDA (1) Excess Capital Usage

> 2.0x

< 2.0x

Debt reduction

Strategic acquisitions

Share repurchases

Target Leverage Range: 1.5x to 2.0x Gross Debt to EBITDA (1)

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

PAGE 24

2008 Financial Targets

PAGE 25

2008 Q3 Targets

15% to 20% Earnings Growth Expected in Q3

($ millions, except per share data)Q3 2008E

Revenue $1,190 +34% to 36% +15% to 17%

Segment Income $ $168 $207 to $212

Segment Income % 14.2% 12.9% to 13.1% 13.8% to 14.0%

EPS $1.38 (1) $1.58 - $1.65 (1) Adjusted EPS, see appendix for reconciliation


Q3 2007

+23% to 26%+23% to 26%

(110) to (130) bps(110) to (130) bps

+15% to 20%+15% to 20%

Excluding APV

PAGE 26

2008 Financial Targets

Targeting Over 30% Revenue and Earnings Growth in 2008

2008 Target Range

Revenue

Segment Income Margin

Excluding APV

Earnings Per Share

Free Cash Flow

Capital Spending


Comments+30% to 33% Organic: 7% to 8%

12.8% to 13.3% ~flat

13.9% to 14.4% +90 to 140 bps

$6.40 to $6.60 32% to 36% (1)

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

$140 to $150 Capacity, Lean & IT Investments

($ millions, except per share data)

(1) As compared to 2007 adjusted EPS

PAGE 27

2008 Potential Upsides & Downsides

Certain Events Could Influence Actual Earnings Per Share

Stronger organic growth

Speed/cost of APV integration

Acquisitions

Foreign currency impacts

Lower tax rate

Upside Potentials

End market slowdown

Speed/cost of APV integration

Disposals

Increasing raw material costs

Foreign currency impacts

Downside Potentials

PAGE 28

Summary

PAGE 29

Backlog Development

SPX’s Total Backlog Has Grown 62 Percent Since Q2 2007;Power and Energy and Process Equipment Markets Have Driven Growth

($ millions)

$1,201 $365 $568

$1,254 $731 $640

$1,401 $799 $696

$2,003 $782 $721

$0 $1,000 $2,000 $3,000 $4,000

Q2 2007

Q4 2007

Q1 2008

Q2 2008

Thermal Flow Industrial

62%62%

PAGE 30

Thermal Equipment Orders

SPX Now has More Than $700m of Backlog in South Africa

Customer: Alstom

Project: Provide Dry Cooling System and feedwater heaters for coal-fired power plants in South Africa

Order size: ~$500m

SPX Geothermal Example in IcelandSPX Dry Cooling ACC System

Customer: Orkuveita Reykjavikur

Project: Provide cold-end solution for 5 geothermal plants in Iceland

Order size: ~$100m

PAGE 31

Global, Special Service Tools and Equipment Order

5 Year Contract With John Deere Demonstrates SPX’s Global Capabilityand Increases SPX’s Exposure to Non-Automotive OEM’s

Customer:

Project: Provide all special service tools used throughout John Deere’s complete global network

Order length: 5-year, renewable contract

JOHN DEERE

PAGE 32

SPX Earnings Growth

SPX Well Positioned for Future Growth in GlobalInfrastructure, Process Equipment and Tools & Diagnostics Markets

Global Infra

structu

re Process Equipment

Tools & Diagnostics

2005 2006 2007 2008E

…Driving Earnings Growth*

$2.62

$4.85

$3.07

$6.40 to $6.60

17%17% 58%58% ~34%~34%

Three Global Growth Markets…

*2005 – 2007 adjusted for certain items, see appendix for reconciliations

PAGE 33

Questions

PAGE 34

Appendix

PAGE 35

Balance Sheet

($ millions) 12/31/07 6/30/08 Change

Cash $354 $420 $66

Other Current Assets 2,342 2,607 265

Goodwill 1,944 1,991 47

Other Assets 1,597 1,627 30

Total Assets $6,237 $6,645 $407

Other Current Liabilities $1,838 $1,936 $98

Total Debt 1,569 1,596 28

Long-Term Liabilities 825 801 (24)

Shareholders' Equity 2,006 2,312 306Total Liabilities and Shareholders' Equity

$6,237 $6,645 $407

Debt / Capital Ratio 44% 41%LTM EBITDA (1) $663 $779Net Debt / EBITDA (1) 1.83x 1.50xGross Debt / EBITDA (1) 2.29x 1.98x

(1) As defined in the SPX credit facility

PAGE 36

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 $6.50 Per Share

(1)

2007

2008E Guidance Mid-Point

Revenue $4,747 $6,260Segment Income Margin 13.0% 13.1%

Corporate overhead (95) (102) Pension / PRHC (44) (39) Stock-based compensation (41) (46) Special charges (8) (20) Operating Income $428 $615 % of revenues 9.0% 9.8%

Equity Earnings in J/V 40 46 Other Income/(Expense) (5) (10) Interest Expense (71) (110) Pre-Tax Income from Continuing Operations $392 $542Tax Provision (126) (186) Income from Continuing Operations $266.3 $356

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

EPS from continuing operations 4.73$ 6.50$ EPS from businesses discontinued in 2008 0.12$ Adjusted EPS 4.85$

Guidance Range $6.40 to $6.60

EBITDA 663$ 850$

PAGE 37

Expected APV Impact

Revenue: ~3-5% revenue growth ($885m to $900m)

Operating margin: ~5%

Interest expense: ~$40m

Cash restructuring $30m to $50m

Capital spending: ~$15m

Depreciation expense: ~$15m

2008E APV Financial Modeling Targets

Expect APV Acquisition to Dilute Consolidated Margin Performance;Neutral to Slightly Accretive Impact to EPS

Note: Quarterly results may vary

PAGE 38

Pro Forma APV Calculation

Base Flow Segment APV

Pro Forma Flow

SegmentQ2 2007

Revenue $278 $192 $470Segment Income $45 $6 $51Segment Margin 16.0% 3.1% 10.8%

Q2 2008Revenue $329 $217 $547Segment Income $57 $13 $70Segment Margin 17.4% 5.9% 12.8%


PAGE 39

Pro Forma Calculation

RevenueSegment Income

Segment Margin

2007SPX $4,747 $616 13.0%

APV $876 $19 2.2%

Pro Forma SPX $5,623 $635 11.3%

2008E

SPX $5,285 - $5,410 13.9% to 14.4%APV $885 - $900 ~5%

Total SPX $6,190 - $6,330 12.8% to 13.3%

2008ESPX Flow Technology 16.5% to 17.0%

APV ~5%

Total SPX Flow Technlogy 11.8% to 12.3%Note: Data from continuing operations

PAGE 40

Re-Stated Quarterly Segment Data


2006 2007 2006 2007 2006 2007 2006 2007 2006 2007

Flow Technology Revenue $194 $251 $215 $278 $212 $269 $244 $323 $866 $1,121 Segment Income $28 $38 $34 $45 $34 $45 $37 $50 $133 $177 Segment Margins 14.3% 15.0% 15.9% 16.0% 16.2% 16.8% 15.2% 15.4% 15.4% 15.8%

Test and Measurement Revenue $242 $240 $270 $289 $260 $250 $296 $320 $1,067 $1,098 Segment Income $22 $24 $40 $33 $42 $23 $46 $41 $150 $120 Segment Margins 9.3% 9.9% 14.7% 11.3% 16.3% 9.2% 15.6% 12.7% 14.1% 10.9%

Thermal Equipment and Services Revenue $275 $313 $300 $388 $322 $422 $431 $438 $1,328 $1,561 Segment Income $12 $16 $15 $38 $34 $57 $50 $52 $111 $163 Segment Margins 4.4% 5.2% 4.9% 9.8% 10.7% 13.4% 11.7% 12.0% 8.4% 10.4%

Industrial Products and Services Revenue $196 $212 $207 $253 $206 $249 $227 $253 $837 $966 Segment Income $19 $26 $22 $34 $25 $44 $33 $52 $99 $156 Segment Margins 9.6% 12.3% 10.8% 13.5% 11.9% 17.7% 14.6% 20.5% 11.8% 16.2%

Full YearFirst Quarter Second Quarter Third Quarter Fourth Quarter

PAGE 41

Non-GAAP Reconciliations

PAGE 42

Q2 2008 Organic Revenue Growth Reconciliation

Net Revenue Acquisitions/ Organic Growth Divestitures Growth

Flow 96.5% 78.6% 3.5% 14.4%

Test 12.4% 10.5% 4.7% -2.8%

Thermal 5.5% 0.0% 7.1% -1.6%

Industrial 9.0% 0.0% 1.2% 7.8%

Consolidated 28.8% 20.6% 4.5% 3.7%

Foreign Currency

Quarter Ended June 30, 2008


PAGE 43

Q2 Free Cash Flow Reconciliation to GAAP Financial Measures

($ millions) Q2 2006 Q2 2007 Q2 2008

Net cash from continuing operations (28)$ 81$ 48$ Capital expenditures (14)$ (17)$ (26)$

Free cash flow from continuing operations (42)$ 64$ 22$ Taxes paid on LYONs tax recapture 45$

Adjusted free cash flow from continuing operations 3$

Free Cash Flow Reconciliation(unaudited)

SPX Corporation and Subsidiaries

PAGE 44

1H Free Cash Flow Reconciliation to GAAP Financial Measures

($ millions) 1H 2006 1H 2007 1H 2008

Net cash from continuing operations (142)$ 90$ 43$ Capital expenditures (24)$ (28)$ (46)$

Free cash flow from continuing operations (166)$ 62$ (3)$ Interest paid on LYONS repurchase 84$ Taxes paid on LYONs tax recapture 45$

Adjusted free cash flow from continuing operations (37)$



PAGE 45

Full Year Free Cash Flow Reconciliation to GAAP Financial Measures

($ millions)2006 2007

Net cash from continuing operations 49$ 404$ Capital expenditures (56)$ (91)$

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 46

2008E Free Cash Flow Reconciliation to GAAP Financial Measures

($ millions)

Net cash from continuing operations 440$ 470$ Capital expenditures (140)$ (150)$

Free cash flow from continuing operations 300$ 320$

2008E Guidance Range



PAGE 47

EBITDA Reconciliations

Note: EBITDA as defined in the credit facility

($ millions) 2006 2007 2008E

Revenues $4,313 $4,822 $6,260

Net Income $171 $294 $356Income tax provision (benefit) 56 90 186Interest expense 50 77 110Income before interest and taxes $277 $461 $652

Depreciation and intangible amortization expense 90 83 112EBITDA from continuing operations $367 $544 $764

Adjustments:Non-cash compensation expense 38 41 46Extraordinary non-cash charges 41 14 0Extraordinary non-recurring cash charges 27 7 20Excess of JV distributions over JV income (12) 2 12Loss (Gain) on disposition or assets 56 4 0Pro Forma effect of acquisitions and divestitures 53 6Other 8 0 3

Adjusted LTM EBITDA from continuing operations $525 $663 $850

PAGE 48

Debt Reconciliations

($ millions) 12/31/2007 6/30/2008

Short-term debt 255$ 305$ Current maturities of long-term debt 79 79 Long-term debt 1,235 1,213

Gross Debt 1,569$ 1,596$

Less: Puchase card program and extended A/P programs (58)$ (55)$

Adjusted Gross Debt 1,511$ 1,542$

Less: Cash in excess of $50m (304)$ (370)$

Adjusted Net Debt 1,207$ 1,172$

Note: Debt as defined in the credit facility

PAGE 49

Q3 2007 Adjusted Earnings Per Share

Q3 2007

GAAP EPS from continuing operations $1.73

Q3 Tax Benefits (0.35)

Adjusted EPS from continuing operations $1.38


PAGE 50

2007 Adjusted Earnings Per Share

Adjusted EPS Presented Consistent with 2007 EPS Guidance


FY 2007


Q3 Tax Benefits (0.34)

Q4 Tax Benefits (0.25)Q4 Asset Impairment 0.05

Q4 Legacy Legal Matters (Corporate Expense) 0.06


PAGE 51

2006 Adjusted Earnings Per Share

FY 2006


Q2 Tax Accrual Reversal (0.57)

Q2 VSI Legal Settlement 0.20

Q4 Miscellaneous Tax Benefits (0.28)

Q4 Charges for Legacy Legal Matters 0.07


PAGE 52

2005 Adjusted EPS Reconciliation

Note: The model above has been presented on the same basis as the annual earnings per share model presented in SPX’s March 3, 2005 investor presentation

GAAP net income per share $15.33

Income from discontinued operations (15.61)SFAS 142 asset impairment 0.96Loss on early extinguishment of debt 0.96Normalized tax rate (40%) 0.41Projected share count (64m) 0.26Normalized interest expense ($37m) 0.12Other (1) 0.19

Adjusted earnings per share $2.62

(1) Includes income from businesses discontinued in the second half of 2005, other expense relating to FX losses on the repatriation of cash, a one-time legal settlement at our EGS joint venture and a one-time gain on the sale of property.

Year ended, Dec 31, 2005

SPX Corporation 2nd Quarter 2008 Results

Economy & Finance