Raymond, Me.-based Dielectric has acquired the assets of Kline Towers, a division of Kline Iron & Steel Co. Based in Columbia, S.C., Kline had annual revenues last year of more than $10 million. Terms of the deal were not disclosed.
Kline has a 40 year history in the broadcast tower business, particularly in the engineering of tall and multi-array towers and platform structures.
"Kline Towers' quality reputation in the broadcast market will not only expand Dielectric's market presence, but will also provide customers with a more complete systems package," said John Capasso, president of Dielectric. "Dielectric and Kline Towers have worked together on several large projects over the years and we are delighted to have them join the team."
On the financial side, Dielectric's parent, SPX Corp., reported 2003 broadcast and communications fourth quarter organic revenues declined 23.5 percent compared with 2002, "due to regulatory delays in the HDTV rollout and a decline in demand for telecommunications line management systems." For the entire technical products and systems segment of SPX, income was $205.3 million in 2003, compared with $222.9 million in 2002. The SPX news release said, "Broad restructuring actions have been taken across broadcast and communication systems and further restructuring charges are expected as the Radiodetection unit is integrated with this platform."
For SPX as a whole, fourth quarter earnings per share from continuing operations were up 31 percent in the fourth quarter of 2003, compared to 2002.
Bloomberg.com posted a story, SPX Shares Plunge as Analysts Cut Ratings on Forecast saying analysts expected no revenue growth this year, noting "the shortfall would come from waning sales and profit at the company's power-systems and TV antenna business." However, looking at the numbers in the article, power systems sales, which dropped 45 percent in 2003, appeared to be much more of a problem for SPX than the decline in the broadcast TV antenna business.
