Du är här


Hubbell Reports First Quarter Results: Net Sales of $759.5 Million and Earnings Per Diluted Share of $1.08

SHELTON, CT. (April 22, 2014) - Hubbell Incorporated (NYSE: HUBA, HUBB)
today reported operating results for the first quarter ended March 31, 2014.

Net sales in the first quarter of 2014 were $759.5 million, an increase of 3%
compared to the $740.1 million reported in the first quarter of 2013.
Operating income was $104.8 million, or 13.8% of net sales, compared to $97.7
million, or 13.2% of net sales, for the comparable period of 2013. The
effective tax rate in the first quarter of 2014 was 32.0%. This compares to
an effective tax rate of 26.8% reported in the first quarter of 2013, which
included the retroactive application of the U.S. Federal R&D tax credit that
was part of the American Taxpayer Relief Act of 2012. Net income in the
first quarter of 2014 was $64.2 million, a decrease of 3% compared to the
$65.9 million reported in the first quarter of 2013. Earnings per diluted
share were $1.08, a decrease of 2% compared to the $1.10 reported in the
first quarter of 2013. Free cash flow (defined as cash flow from operations
less capital expenditures) was $30.7 million in the first quarter of 2014
versus $29.7 million reported in the comparable period of 2013.


David G. Nord, President and Chief Executive Officer, said, "The first quarter
results were generally in line with our expectations given the adverse
weather conditions that hampered much of the U.S. during January and
February. However, we were encouraged by the incoming order rates for March,
which did improve significantly but were not enough to offset the weakness
experienced in the first two months. Despite these headwinds, the
organization remained focused on the things that we can control including
executing our productivity programs and carefully managing costs. These
efforts resulted in Hubbell expanding its operating margins by 60 basis
points compared to last year despite flat organic sales. We have also
continued to focus on executing our growth strategy and I am pleased to
report that we completed two acquisitions in April, one in Lighting and the
other in our Power business. The lighting acquisition increases the strength
of our overall lighting offering in key vertical markets including education
and healthcare. The power acquisition, while relatively small, is a natural
extension of our existing product lines in bushings and switching. These
deals will add approximately $45 million in annual revenues and reflect our
ongoing commitment to growing the enterprise."


The comments and year-over-year comparisons in this segment review are based
on first quarter results in 2014 and 2013.

Electrical segment net sales in the first quarter of 2014 increased 5% to
$538.8 million compared to $515.3 million reported in the first quarter of
2013. Acquisitions added 4% to sales in the quarter while organic volume was
essentially flat as severe weather conditions in January and February
negatively impacted demand. Compared to the first quarter of 2013, operating
income increased 11% to $68.1 million. Operating margin in the first quarter
of 2014 was 12.6%, compared to 12.0% reported in the comparable period of
2013. The increase in operating income and margin was primarily due to the
benefit of productivity and pricing in excess of all cost increases.

Hubbell's Power segment net sales in the first quarter of 2014 were $220.7
million compared to $224.8 million reported in the first quarter of 2013.
The sales decline was primarily due to weaker demand for construction related
products that were impacted by unfavorable weather conditions while spending
for distribution and transmission was relatively flat. The decline in organic
volume was partially offset by acquisitions which contributed 2% to sales in
the quarter. Compared to the first quarter of 2013, operating income
increased 2% to $36.7 million. Operating margin in the first quarter of 2014
was 16.6%, compared to 16.1% reported in the comparable period of 2013. The
increase in operating margin was primarily due to productivity improvements
and lower facility consolidation costs, partially offset by unfavorable
pricing and material costs.


Mr. Nord commented, "Looking to our full year outlook for 2014, we expect
overall sales to increase in the 5 to 6% range with completed acquisitions
contributing between 3 and 4% of the growth. Despite the lower than
anticipated demand to start the year, the relative strength of our March
orders gives us cautious optimism about the remainder of the year. We also
plan to expand our operating margins by approximately 20 to 30 basis points
by remaining focused on executing our productivity and pricing plans to
offset all cost increases, which should enable the higher organic volume to
drive our margin improvement."

Mr. Nord concluded, I am confident that we have the people and strategies in
place to deliver another strong financial performance in 2014. We are also
highly engaged and focused on growing the enterprise. Over the past several
years we have increased our investment in resources to support our growth
objectives. These investments are beginning to yield results as evidenced by
the five acquisitions completed in the first four months of this year. Our
balance sheet remains in a strong position to pursue acquisitions and
continue to enhance shareholder value."

Certain statements contained herein may constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
These include statements about capital resources, performance and results of
operations and are based on the Company's reasonable current expectations.
In addition, all statements regarding anticipated growth or improvement in
operating results, anticipated market conditions, and economic recovery are
forward-looking. These statements may be identified by the use of
forward-looking words or phrases such as "improved", "leading", "improving",
"continuing growth", "continued", "ranging", "contributing", "primarily",
"plan", "expect", "anticipated", "expected", "expectations," "should result",
"uncertain", "goals", "projected", "on track", "likely", "intend" and others.
Such forward-looking statements involve numerous assumptions, known and
unknown risks, uncertainties and other factors which may cause actual and
future performance or achievements of the Company to be materially different
from any future results, performance, or achievements expressed or implied by
such forward-looking statements. Such factors include, but are not limited
to: achieving sales levels to fulfill revenue expectations; unexpected costs
or charges, certain of which may be outside the control of the Company;
expected benefits of process improvement and other lean initiatives; the
expected benefit and effect of the business information system initiatives
and streamlining programs; the availability and costs of raw materials and
purchased components; realization of price increases; the ability to achieve
projected levels of efficiencies and cost reduction measures; general
economic and business conditions; competition; and other factors described in
our Securities and Exchange Commission filings, including the "Business",
"Risk Factors", and "Quantitative and Qualitative Disclosures about Market
Risk" Sections in the Annual Report on Form 10-K for the year ended December
31, 2013.

Hubbell Incorporated is an international manufacturer of quality electrical
and electronic products for a broad range of non-residential and residential
construction, industrial and utility applications. With 2013 revenues of
$3.2 billion, Hubbell Incorporated operates manufacturing facilities in the
United States, Canada, Switzerland, Puerto Rico, Mexico, the People's
Republic of China ("China"), Italy, the United Kingdom, Brazil and Australia.
Hubbell also participates in joint ventures in Taiwan and Hong Kong, and
maintains sales offices in Singapore, China, India, Mexico, South Korea and
countries in the Middle East. The corporate headquarters is located in
Shelton, CT.


|Condensed Consolidated Statement of Income |
|(unaudited) |
|(in millions, except per share amounts) |
| |
| |
| Three Months Ended |
| March 31 |
| |
| 2014 2013 |
| |
|Net sales $ 759.5 $ 740.1 |
|Cost of goods sold 514.5 503.8 |
|Gross profit 245.0 236.3 |
|Selling&administrative expenses 140.2 138.6 |
|Operating income 104.8 97.7 |
|Operating income as a % of Net sales 13.8% 13.2% |
|Interest expense, net (7.5) (7.3) |
|Other (expense) income, net (1.2) 0.8 |
|Total other expense, net (8.7) (6.5) |
|Income before income taxes 96.1 91.2 |
|Provision for income taxes 30.8 24.4 |
|Net income 65.3 66.8 |
|Less: Net income attributable to noncontrolling interest 1.1 0.9 |
|Net income attributable to Hubbell $ 64.2 $ 65.9 |
| |
| |
|Earnings Per Share: |
|Basic $ 1.08 $ 1.11 |
|Diluted $ 1.08 $ 1.10 |
| |
|Cash dividends per common share $ 0.50 $ 0.45 |
| |
| |


Författare Hugin

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.