Hubbell Inc.

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Press Release $HUB.B Hubbell Inc.

0 COMMENTs 24 Jan
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Hubbell Reports Fourth Quarter Results: Net Sales of $752.5 Million and Earnings Per Diluted Share of $1.20


SHELTON,  CT.   (January  24, 2013) -  Hubbell  Incorporated (NYSE:  HUBA, HUBB)
today reported operating results for the fourth quarter ended December 31, 2012.

Net  sales in the fourth quarter of 2012 were $752.5 million, an increase of 2%
compared to the $740.0 million reported in the fourth quarter of 2011. Operating
income was $110.5 million, or 14.7% of net sales, compared to $109.8 million, or
14.8% of  net sales, for the comparable period of 2011. Net income in the fourth
quarter  of 2012 was $71.9  million versus $70.0  million reported in the fourth
quarter  of 2011. Earnings per diluted share were $1.20 in the fourth quarter of
2012 compared  to $1.17 reported  in the fourth  quarter of 2011. Free cash flow
(defined  as cash  flow from  operations less  capital expenditures)  was $139.3
million  in the  fourth quarter  of 2012 versus  $103.7 million  reported in the
comparable period of 2011.

Net  sales for the full year 2012 were  $3.0 billion, an increase of 6% compared
to 2011. Operating income was $471.8 million, or 15.5% of net sales, compared to
$423.8  million, or 14.8% of  net sales, for  the comparable period of 2011. Net
income for the full year 2012 was $299.7 million, an increase of 12% compared to
the  $267.9 million reported in 2011. Earnings  per diluted share were $5.00, or
13% above  the $4.42 reported for the  comparable period of 2011. Free cash flow
was $300.0 million compared to $279.6 million reported in 2011.


OPERATIONS REVIEW

Timothy  H. Powers, Chairman of the Board  said "Before we discuss the financial
results,  I would  like to  take this  opportunity to  express what an honor and
privilege  it has  been leading  Hubbell over  the past  decade. As  many of you
already know, Dave Nord has been appointed President and Chief Executive Officer
while  I will remain Chairman of the Board. I am looking forward to working with
Dave  and the  Board during  this transition  and am  highly confident  that the
Company will continue to prosper under Dave's leadership.

"Now  turning to the results, the  uncertainty surrounding the U.S. election and
the  "fiscal cliff" appeared to have a  dampening effect on demand in the fourth
quarter.  Our overall sales  increased slightly in  the quarter with essentially
flat  organic demand while acquisitions added two percentage points to our sales
growth.  From  a  profitability  perspective,  we  reported  operating margin of
14.7%, in  line with our expectations despite some market softening as we exited
the  year.  I  am  pleased  to  report  that  we  completed  the  acquisition of
Continental  Industries, Inc. in  January which will  be added to our Electrical
segment.  Continental  makes  high  quality  exothermic  welding  and  connector
products  and is a strong  fit with our Burndy  business. This marks the seventh
deal  we  have  completed  in  the  past  year  and  a  half  and highlights our
capabilities in this area.

"Looking  at our end markets, we  experienced a slightly weaker environment than
anticipated during the fourth quarter. U.S. non-residential new construction was
weak  as  it  appeared  that  spending  decisions  may  have been delayed due to
economic  uncertainty. Within this  market, relight projects  and demand for LED
fixtures  were  areas  of  strength  in  the quarter. The residential market was
another  area  of  growth  for  us  and  the recovery is clearly underway. North
American electrical utility demand for our products was higher due in large part
to  Hurricane Sandy as  well as increased  spending on transmission projects. At
the same time, we experienced weaker demand for maintenance related distribution
products  as  utility  budgets  were  limited  due  to higher levels of spending
earlier in the year. Industrial demand was mixed with solid growth in the energy
related industries while our high voltage test businesses were much weaker."

Mr.  Powers added "In reviewing  the full year results,  we achieved the highest
sales  and earnings per share in our  history. For the year, our sales increased
6% with  balanced  growth  between  our  two  segments. We experienced growth in
several  key areas;  utility, oil  and gas  and residential  markets as  well as
continued  higher demand for  energy efficient lighting  used for renovation and
relighting.  Looking  at  our  profitability,  we  finished  the  year at 15.5%
operating  margin which is well above the same point in our previous cycle. This
margin  level was attained  through a disciplined  process of managing costs and
driving  productivity across the enterprise and as a result we have evolved into
a structurally more profitable organization. I would also like to highlight that
we  have  increased  the  pace  of  acquisitions;  adding to our branded product
breadth.  In addition, we raised our dividend two times during the course of the
year  and  returned  approximately  $75  million to shareholders by repurchasing
nearly  one  million  shares  reflecting  our  confidence in Hubbell's cash flow
generating abilities and commitment to increasing shareholder value."


SEGMENT REVIEW

The  comments and year-over-year percentages in this segment review are based on
fourth quarter results in 2012 and 2011.

Electrical  segment  net  sales  in  the  fourth quarter of 2012 increased 2% to
$521.4  million compared  to $513.6  million reported  in the  fourth quarter of
2011. The  increase was due to acquisitions which contributed 2% to sales in the
quarter.  In addition, higher  demand in the  energy and residential markets was
offset  by  weakness  in  high  voltage  test  equipment. Compared to the fourth
quarter of 2011, operating income decreased 8% to $68.0 million, or 13.0% of net
sales.  The decrease in operating  income was primarily due  to a less favorable
product mix and higher costs, including pension and benefit related expenses.


Hubbell's  Power segment  net sales  in the  fourth quarter  of 2012 were $231.1
million  compared to $226.4 million reported  in the fourth quarter of 2011. The
acquisition  that was completed  in the 4(th) quarter  of 2012 contributed 2% to
sales.  The organic sales were essentially flat as the favorable impact of storm
sales  and large  transmission related  projects were  offset by lower levels of
spending  for distribution maintenance. Compared to the fourth quarter of 2011,
operating  income increased  18% to $42.5  million, or  18.4% of net  sales. The
increase  in operating income was primarily due to productivity improvements and
price realization in excess of cost increases.


SUMMARY & OUTLOOK

David  G.  Nord,  President  and  Chief  Executive Officer commented "Looking to
2013, we  expect overall sales to increase in the 3 to 5% range comprised of low
single  digit growth from organic volume and 2% from acquisitions. We expect the
volume  increases to be more weighted towards the second half of the year due to
anticipated  strengthening in the markets and  more favorable comparisons to the
prior  year.  Within  our  Electrical  segment,  we expect 3 to 5% growth led by
strong   growth   in   our   residential  businesses.  The  non-residential  new
construction  market is likely to remain challenging  in the near term but third
party  forecasts still point to some improvement  in the second half of the year
and  relight opportunities should  also have a  favorable impact. The industrial
market  is  expected  to  be  flat  to  slightly higher with modest increases in
factory  utilization and the energy markets partially offset by lower demand for
high  voltage test equipment. The Power segment  is expected to grow in the 4 to
6% range   with  acquisitions  contributing  2%. We  expect  modest  growth  for
maintenance  and  repair  work  on  the  distribution and transmission networks.
Spending for transmission related projects is expected to remain at historically
high levels but the growth rate will be lower than the past couple of years."

Mr.  Nord added "Turning to profitability, we expect that operating margins will
expand  by approximately 40 basis points in 2013 primarily due to leveraging the
higher  volume.  As  always,  we  will  continue focusing on carefully balancing
productivity  and pricing actions to offset all  cost increases. Our tax rate is
expected  to be approximately 31.5% in 2013 which  includes the two year benefit
of the reinstatement of the R&D tax credit."

Mr.  Nord concluded "On a more personal  note, I am energized by the opportunity
to lead an organization with such a rich heritage as Hubbell. As I look forward,
I  am excited  to work  with Tim,  the Board  and all  of Hubbell's employees to
continue to build upon our successes."




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;  anticipated impacts from the
Federal  stimulus package;  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, 2011.

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 2012 revenues of $3.0
billion,  Hubbell Incorporated  operates manufacturing  facilities in the United
States,  Canada,  Switzerland,  Puerto  Rico,  Mexico,  the People's Republic of
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, the People's Republic of China, India, Mexico, South Korea
and the Middle East.  The corporate headquarters is located in Shelton, CT.


                                    #######


                              HUBBELL INCORPORATED

                   Condensed Consolidated Statement of Income

                                  (unaudited)

                    (in millions, except per share amounts)





                               Three Months Ended            Year Ended

                                   December 31               December 31
                             ----------------------- ---------------------------

                             +---------+ +---------+ +-----------+ +-----------+
                             |  2012   | |  2011   | |   2012    | |   2011    |
                             +---------+ +---------+ +-----------+ +-----------+


 Net Sales                    $  752.5    $  740.0    $  3,044.4    $  2,871.6

 Cost of goods sold              502.7       503.7       2,032.2       1,947.9
                             ----------- ----------- ------------- -------------
 Gross Profit                    249.8       236.3       1,012.2         923.7

 Selling & administrative
 expenses                        139.3       126.5         540.4         499.9
                             ----------- ----------- ------------- -------------
 Operating income                110.5       109.8         471.8         423.8

   Operating income as a % of
   Net sales                      14.7%       14.8%         15.5%         14.8%

 Interest expense, net            (7.5)       (7.3)        (29.0)        (29.6)

 Other income (expense), net      (0.9)       (0.6)         (1.0)         (4.4)
                             ----------- ----------- ------------- -------------
 Total other expense, net         (8.4)       (7.9)        (30.0)        (34.0)

 Income before income taxes      102.1       101.9         441.8         389.8

 Provision for income taxes       29.2        31.4         139.7         119.6
                             ----------- ----------- ------------- -------------
 Net income                   $   72.9    $   70.5    $    302.1    $    270.2

 Less: Net income
 attributable to
 noncontrolling interest           1.0         0.5           2.4           2.3
                             ----------- ----------- ------------- -------------
 Net income attributable to
 Hubbell                      $   71.9    $   70.0    $    299.7    $    267.9
                             ----------- ----------- ------------- -------------




 Earnings Per Share:

   Basic                      $   1.21    $   1.18    $     5.05    $     4.47

   Diluted                    $   1.20    $   1.17    $     5.00    $     4.42



 Cash dividends per common
 share                        $   0.45    $   0.38    $     1.68    $     1.52








                              HUBBELL INCORPORATED

                      Condensed Consolidated Balance Sheet

                                  (unaudited)

                                 (in millions)





                                        December 31, 2012     December 31, 2011
                                       -------------------   ------------------
 ASSETS



 Cash and cash equivalents            $            645.0    $            569.6

 Short-term investments                              8.8                  12.8

 Accounts receivable, net                          405.2                 394.3

 Inventories, net                                  341.7                 318.3

 Deferred taxes and other                           55.5                  58.5
                                     --------------------- --------------------


    TOTAL CURRENT ASSETS                         1,456.2               1,353.5



 Property, plant and equipment, net                364.7                 359.6

 Investments                                        36.7                  42.0

 Goodwill                                          755.5                 727.3

 Intangible assets, net                            288.1                 269.5

 Other long-term assets                             45.8                  94.6
                                     --------------------- --------------------


    TOTAL ASSETS                      $          2,947.0    $          2,846.5
                                     --------------------- --------------------


 LIABILITIES AND EQUITY



 Short-term debt                      $                -    $              2.9

 Accounts payable                                  213.1                 215.7

 Accrued salaries, wages and employee
 benefits                                           75.4                  71.1

 Accrued insurance                                  39.6                  46.2

 Dividends payable                                     -                  22.5

 Other accrued liabilities                         119.3                 133.7
                                     --------------------- --------------------


    TOTAL CURRENT LIABILITIES                      447.4                 492.1



 Long-term debt                                    596.7                 596.3

 Other non-current liabilities                     235.0                 284.6
                                     --------------------- --------------------


    TOTAL LIABILITIES                            1,279.1               1,373.0



 Hubbell Shareholders' Equity                    1,661.2               1,467.8

 Noncontrolling interest                             6.7                   5.7
                                     --------------------- --------------------
    TOTAL EQUITY                                 1,667.9               1,473.5
                                     --------------------- --------------------


 TOTAL LIABILITIES AND EQUITY         $          2,947.0    $          2,846.5
                                     --------------------- --------------------



                              HUBBELL INCORPORATED

                         Earnings Per Share Calculation

                                  (unaudited)

                    (in millions, except per share amounts)




                                      Three Months Ended        Year Ended

                                          December 31           December 31
                                     --------------------- --------------------
                                       2012       2011       2012       2011
                                     ---------- ---------- ---------- ---------
 Numerator:

   Net income attributable to Hubbell $  71.9    $  70.0    $ 299.7    $ 267.9

   Less: Earnings allocated to
   participating securities               0.2        0.3        1.0        1.0
                                     ---------- ---------- ---------- ---------
   Net income available to common
   shareholders                       $  71.7    $  69.7    $ 298.7    $ 266.9



 Denominator:

   Average number of common shares
   outstanding                           59.1       58.9       59.1       59.7

   Potential dilutive shares              0.5        0.6        0.7        0.7
                                     ---------- ---------- ---------- ---------
   Average number of diluted shares
   outstanding                           59.6       59.5       59.8       60.4
                                     ---------- ---------- ---------- ---------


 Earnings per Share:

   Basic                              $  1.21    $  1.18    $  5.05    $  4.47

   Diluted                            $  1.20    $  1.17    $  5.00    $  4.42




                              HUBBELL INCORPORATED

                 Condensed Consolidated Statement of Cash Flows

                                  (unaudited)

                                 (in millions)





                                                        Year Ended December 31
                                                       -------------------------

                                                       +----------+ +----------+
                                                       |  2012    | |  2011    |
                                                       +----------+ +----------+




 Cash Flows From Operating Activities

    Net income attributable to Hubbell                  $   299.7    $   267.9

    Depreciation and amortization                            66.8         68.2

    Stock-based compensation expense                         15.8         15.1

    Deferred income taxes                                    27.5         18.8

    Changes in working capital                              (45.3)       (21.5)

    Contributions to defined benefit pension plans          (22.6)       (22.7)

    Other, net                                                7.2          9.2
                                                       ------------ ------------


         Net cash provided by operating activities          349.1        335.0
                                                       ------------ ------------


 Cash Flows From Investing Activities

    Capital expenditures                                    (49.1)       (55.4)

    Acquisition of businesses, net of cash acquired         (90.7)       (29.6)

    Net change in investments                                 9.9        (14.4)

    Other, net                                               13.8         12.9
                                                       ------------ ------------


         Net cash used in investing activities             (116.1)       (86.5)
                                                       ------------ ------------


 Cash Flows From Financing Activities

    Short-term debt (repayments) borrowings, net             (2.9)         1.4

    Payment of dividends                                   (122.3)       (90.1)

    Repurchase of common shares                             (75.6)      (137.7)

    Proceeds from exercise of stock options                  24.9         21.9

    Other, net                                               14.2          6.2
                                                       ------------ ------------


         Net cash used in financing activities             (161.7)      (198.3)
                                                       ------------ ------------


 Effect of foreign exchange rate changes on cash and
 cash equivalents                                             4.1         (1.3)
                                                       ------------ ------------


 Increase in cash and cash equivalents                       75.4         48.9

 Cash and cash equivalents

     Beginning of period                                    569.6        520.7
                                                       ------------ ------------
     End of period                                      $   645.0    $   569.6
                                                       ------------ ------------


                              HUBBELL INCORPORATED

                              Segment Information

                                  (unaudited)

                                 (in millions)







                               Three Months Ended
                                  December 31          Year Ended December 31
                            ------------------------ ---------------------------

                            +---------+ +----------+ +-----------+ +-----------+
                            |  2012   | |  2011    | |   2012    | |   2011    |
                            +---------+ +----------+ +-----------+ +-----------+




 Net Sales

      Electrical             $  521.4    $   513.6    $  2,114.6    $  2,004.2

      Power                     231.1        226.4         929.8         867.4
                            ----------- ------------ ------------- -------------
           Total Net Sales   $  752.5    $   740.0    $  3,044.4    $  2,871.6
                            ----------- ------------ ------------- -------------




 Operating Income

      Electrical             $   68.0    $    73.7    $    303.7    $    282.0

      Power                      42.5         36.1         168.1         141.8
                            ----------- ------------ ------------- -------------
           Total Operating
 Income                      $  110.5    $   109.8    $    471.8    $    423.8
                            ----------- ------------ ------------- -------------




 Operating Income as a % of Net Sales

      Electrical                 13.0%        14.3%         14.4%         14.1%

      Power                      18.4%        15.9%         18.1%         16.3%

           Total                 14.7%        14.8%         15.5%         14.8%




                              HUBBELL INCORPORATED

                          Non-GAAP Financial Measures

                                  (unaudited)

                                 (in millions)



 Ratios of Total Debt to Total Capital and Net Debt to Total Capital
-------------------------------------------------------------------------------


                                       December
                                       31, 2012           December 31, 2011
                                   ----------------- --------------------------
   Total Debt                       $        596.7    $                  599.2

   Total Hubbell's Shareholders'
   Equity                                  1,661.2                     1,467.8
                                   ----------------- --------------------------
   Total Capital                    $      2,257.9    $                2,067.0
                                   ----------------- --------------------------


   Total Debt to Total Capital                  26%                         29%



   Total Debt                       $        596.7    $                  599.2

   Less: Cash and cash equivalents          (645.0)                     (569.6)

         Investments                         (45.5)                      (54.8)
                                   ----------------- --------------------------
   Net Debt                         $        (93.8)   $                  (25.2)
                                   ----------------- --------------------------


   Net Debt to Total Capital                   (4%)                        (1%)



   Note: Management believes that net debt to capital is a useful measure
   regarding Hubbell's financial leverage for evaluating the Company's ability
   to meet its funding needs.





 Free Cash Flow Reconciliation
-------------------------------------------------------------------------------


                                              Year Ended December 31
                                   --------------------------------------------
                                         2012                   2011
                                   ----------------- --------------------------


   Net cash provided by operating
   activities                       $        349.1    $                  335.0

   Less: Capital Expenditures                (49.1)                      (55.4)
                                   ----------------- --------------------------
   Free cash flow                   $        300.0    $                  279.6
                                   ----------------- --------------------------


   Note: Management believes that free cash flow provides useful information
   regarding Hubbell's ability to generate cash without reliance on external
   financings.  In addition, management uses free cash flow to evaluate the
   resources available for investments in the business, strategic acquisitions
   and further strengthening the balance sheet.







Contact:   James M. Farrell
           Hubbell Incorporated
           40 Waterview Drive
           P.O. Box 1000
           Shelton, Connecticut  06484
           (475) 882-4000




This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
    other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
     originality of the information contained therein.

Source: Hubbell Inc. via Thomson Reuters ONE
[HUG#1672720]



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