Hubbell Inc.

$HUB.B - NYSE - Electrical Equipment
0 LAST
0 CHANGE $
0 CHANGE %
loader
ON 0
WATCHLISTS

COMMUNIQUÉ DETAILS

posts/post

Press Release $HUB.B Hubbell Inc.

0 COMMENTs 18 Apr
Up 0 0 Down
HUBBELL REPORTS FIRST QUARTER RESULTS; NET SALES OF $740.1 MILLION AND EARNINGS PER DILUTED SHARE OF $1.10


Hubbell Incorporated
40 Waterview Drive
Shelton, CT  06484
475-882-4000

Contact:     James M. Farrell

SHELTON,  CT.  (April 18, 2013) - Hubbell Incorporated (NYSE:  HUBA, HUBB) today
reported operating results for the first quarter ended March 31, 2013.

Net  sales in the first quarter of  2013 were $740.1 million, an increase of 2%
compared to the $723.8 million reported in the first quarter of 2012.  Operating
income  was $97.7 million, or 13.2% of net sales, compared to $101.7 million, or
14.1% of  net sales, for the comparable  period of 2012.  The effective tax rate
in   the  first  quarter  of  2013 was  26.8%, which  includes  the  retroactive
application  of the U.S.  Federal R&D tax  credit that was  part of the American
Taxpayer  Relief Act of 2012.  This compares to  an effective tax rate of 32.8%
reported in the first quarter of 2012.  Net income in the first quarter of 2013
was  $65.9 million versus $63.2 million reported  in the first quarter of 2012.
Earnings  per diluted share were $1.10 in  the first quarter of 2013 compared to
$1.05  reported in the first  quarter of 2012.  Free cash  flow (defined as cash
flow  from operations less capital expenditures)  was $29.7 million in the first
quarter of 2013 versus $33.7 million reported in the comparable period of 2012.








OPERATIONS REVIEW

David  G. Nord, President and Chief  Executive Officer, said, "The first quarter
results  were in line with our expectations with sales increasing 2% compared to
the  prior year.  Acquisitions  added 3% to sales  in the quarter which included
contributions  from Continental Industries, Inc. that  we acquired in January of
this  year. The level of organic sales  in the quarter was essentially unchanged
compared  to last  year's strong  start.  From  a profitability  perspective, we
reported   operating   margin   of  13.2%, below  last  year  due  to  costs  of
approximately  $2 million associated  with facility consolidations  in our Power
segment  and lower  sales of  higher margin  industrial products.  We anticipate
incurring additional charges related to these plant consolidations in the second
quarter of this year.  The total costs related to facility actions for the first
half of 2013 are expected to be approximately $5 million.

"Turning  to  our  end  markets,  U.S. non-residential new construction activity
improved  as most of our businesses that  are exposed to this market experienced
order  growth in the  quarter. North American  electrical utility demand for our
products  was in line with the prior year which benefitted from unusually strong
spending  due to  favorable weather  conditions and  high levels of transmission
project  activity. Industrial demand  was lower primarily  due to our extractive
industry  related businesses which  also experienced strong  demand in the first
quarter  of  2012. We  were  encouraged  that  orders  at  our high voltage test
businesses  increased  in  the  quarter  and,  not surprisingly, the residential
market experienced strong growth."



SEGMENT REVIEW

The  comments and year-over-year percentages in this segment review are based on
first quarter results in 2013 and 2012.

Electrical segment net sales in the first quarter of 2013 increased 2% to $515.3
million  compared to $505.1  million reported in  the first quarter of 2012. The
increase  was due to acquisitions which  contributed 3% to sales in the quarter.
Organic  volume  was  impacted  by  lower  shipments  in  the industrial related
businesses,  most notably in high voltage  test equipment. Compared to the first
quarter of 2012, operating income decreased 3% to $61.6 million, or 12.0% of net
sales.  The decrease  in operating  income was  primarily due  to lower sales of
higher margin industrial products. Price and productivity essentially offset all
cost increases.

Hubbell's  Power  segment  net  sales  in  the first quarter of 2013 were $224.8
million  compared to $218.7  million reported in  the first quarter of 2012. The
acquisition  that was completed in the  fourth quarter of 2012 contributed 3% to
sales.  Organic sales were essentially flat  as utility maintenance spending was
modest compared to an unusually strong start in the first quarter of 2012 due to
favorable weather conditions. Transmission related project spending continued at
a high level but slightly below last year's strong first quarter. In the quarter
the  consolidation  of  facilities  was  initiated  and will be completed in the
second  quarter of 2013. Compared to the first quarter of 2012, operating income
decreased  5% to $36.1 million, or 16.1% of net sales. The decrease in operating
income  was primarily due to these  facility consolidation costs and unfavorable
material costs and pricing.



SUMMARY & OUTLOOK

Mr.  Nord commented, "Looking to our full  year outlook for 2013, we continue to
expect   overall   sales  to  increase  in  the  3 to  5% range  with  completed
acquisitions  contributing 2% of the  growth. Within our  Electrical segment, we
expect  3 to 5% growth led by an anticipated continuation of double digit growth
rates  in  our  residential  businesses.  Our  view  for the non-residential new
construction market is unchanged; we expect low single digit growth for the year
with  some acceleration in the second half. The industrial market is expected to
grow slightly as increases in factory utilization and the energy markets will be
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 already
completed contributing 2%. We expect low single digit growth for maintenance and
repair  work  on  the  distribution  and  transmission  networks.  Spending  for
transmission related projects is expected to remain at a high level but the year
over  year growth rate will be modest compared to record levels in 2012. I would
also  add  that  we  continue  to  seek  out acquisitions to support growing the
enterprise and the pipeline remains active. "

Mr.  Nord concluded, "Turning to profitability, we are still targeting to expand
our  operating  margins  by  approximately  40 basis  points in 2013. The margin
improvement  will be  heavily weighted  to the  second half  of the  year due to
anticipated improvement in year over year volume increases. We plan on achieving
this  goal by operating with discipline and focusing in areas including: driving
productivity  programs throughout the Company, managing pricing in a slow growth
environment   and   carefully   balancing  costs  associated  with  longer  term
investments  in the business. Our ability to execute in these areas should allow
us to expand our margins in 2013 and beyond."



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, 2012.


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,  and 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

                                                                March 31
                                                         -----------------------

                                                         +---------+ +---------+
                                                         |  2013   | |  2012   |
                                                         +---------+ +---------+


Net Sales                                                 $  740.1    $  723.8

Cost of goods sold                                           503.8       489.7
                                                         ----------- -----------
Gross Profit                                                 236.3       234.1

Selling & administrative expenses                            138.6       132.4
                                                         ----------- -----------
Operating income                                              97.7       101.7

  Operating income as a % of Net sales                        13.2%       14.1%

Interest expense, net                                         (7.3)       (7.2)

Other income, net                                              0.8         0.1
                                                         ----------- -----------
Total other expense, net                                      (6.5)       (7.1)

Income before income taxes                                    91.2        94.6

Provision for income taxes                                    24.4        31.0
                                                         ----------- -----------
Net income                                                $   66.8    $   63.6

Less: Net income attributable to noncontrolling
interest                                                       0.9         0.4
                                                         ----------- -----------
Net income attributable to Hubbell                        $   65.9    $   63.2
                                                         ----------- -----------




Earnings Per Share:

  Basic                                                   $   1.11    $   1.06

  Diluted                                                 $   1.10    $   1.05



Cash dividends per common share                           $   0.45    $   0.41






                              HUBBELL INCORPORATED

                      Condensed Consolidated Balance Sheet

                                  (unaudited)

                                 (in millions)





                                            March 31, 2013     December 31, 2012
                                           ----------------   ------------------
ASSETS



Cash and cash equivalents                 $         606.2    $            645.0

Short-term investments                               10.1                   8.8

Accounts receivable, net                            443.6                 405.2

Inventories, net                                    350.6                 341.7

Deferred taxes and other                             60.0                  55.5
                                         ------------------ --------------------


   TOTAL CURRENT ASSETS                           1,470.5               1,456.2



Property, plant and equipment, net                  364.5                 364.7

Investments                                          41.4                  36.7

Goodwill                                            772.4                 755.5

Intangible assets, net                              294.0                 288.1

Other long-term assets                               44.9                  45.8
                                         ------------------ --------------------


   TOTAL ASSETS                           $       2,987.7    $          2,947.0
                                         ------------------ --------------------


LIABILITIES AND EQUITY



Accounts payable                          $         235.6    $            213.1

Accrued salaries, wages and employee
benefits                                             51.0                  75.4

Accrued insurance                                    43.4                  39.6

Other accrued liabilities                           114.6                 119.3
                                         ------------------ --------------------


   TOTAL CURRENT LIABILITIES                        444.6                 447.4



Long-term debt                                      596.8                 596.7

Other non-current liabilities                       242.3                 235.0
                                         ------------------ --------------------


   TOTAL LIABILITIES                              1,283.7               1,279.1



Hubbell Shareholders' Equity                      1,696.8               1,661.2

Noncontrolling interest                               7.2                   6.7
                                         ------------------ --------------------
   TOTAL EQUITY                                   1,704.0               1,667.9
                                         ------------------ --------------------


TOTAL LIABILITIES AND EQUITY              $       2,987.7    $          2,947.0
                                         ------------------ --------------------

                             HUBBELL INCORPORATED

                Condensed Consolidated Statement of Cash Flows

                                  (unaudited)

                                 (in millions)





                                                           Three Months Ended
                                                                March 31
                                                         -----------------------

                                                         +---------+ +---------+
                                                         |  2013   | |  2012   |
                                                         +---------+ +---------+




Cash Flows From Operating Activities

   Net income attributable to Hubbell                     $   65.9    $   63.2

   Depreciation and amortization                              17.2        16.2

   Stock-based compensation expense                            3.0         2.8

   Deferred income taxes                                       4.3         5.4

   Changes in working capital                                (47.9)      (38.6)

   Contributions to defined benefit pension plans             (0.7)       (0.6)

   Other, net                                                  0.9        (3.3)
                                                         ----------- -----------


        Net cash provided by operating activities             42.7        45.1
                                                         ----------- -----------


Cash Flows From Investing Activities

   Capital expenditures                                      (13.0)      (11.4)

   Acquisition of businesses, net of cash acquired           (37.5)      (10.9)

   Net change in investments                                  (5.5)        0.5

   Other, net                                                  0.2         5.5
                                                         ----------- -----------


        Net cash used in investing activities                (55.8)      (16.3)
                                                         ----------- -----------


Cash Flows From Financing Activities

   Short-term debt repayments, net                               -        (2.6)

   Payment of dividends                                      (26.7)      (22.4)

   Repurchase of common shares                                   -       (42.1)

   Proceeds from exercise of stock options                     0.8        18.3

   Other, net                                                  4.2         8.2
                                                         ----------- -----------


        Net cash used in financing activities                (21.7)      (40.6)
                                                         ----------- -----------


Effect of foreign exchange rate changes on cash and cash
equivalents                                                   (4.0)        4.6
                                                         ----------- -----------


Decrease in cash and cash equivalents                        (38.8)       (7.2)

Cash and cash equivalents

    Beginning of period                                      645.0       569.6
                                                         ----------- -----------
    End of period                                         $  606.2    $  562.4
                                                         ----------- -----------

                           HUBBELL INCORPORATED

                           Segment Information

                               (unaudited)

                              (in millions)







                                         Three Months Ended March 31
                                      ---------------------------------

                                      +-------------+   +-------------+
                                      |    2013     |   |    2012     |
                                      +-------------+   +-------------+




 Net Sales

      Electrical                        $    515.3        $    505.1

      Power                                  224.8             218.7
                                      ---------------   ---------------
           Total Net Sales              $    740.1        $    723.8
                                      ---------------   ---------------




 Operating Income

      Electrical                        $     61.6        $     63.8

      Power                                   36.1              37.9
                                      ---------------   ---------------
           Total Operating Income       $     97.7        $    101.7
                                      ---------------   ---------------




 Operating Income as a % of Net Sales

      Electrical                              12.0%             12.6%

      Power                                   16.1%             17.3%

           Total                              13.2%             14.1%


                            HUBBELL INCORPORATED

                       Earnings Per Share Calculation

                                (unaudited)

                  (in millions, except per share amounts)



                                                         Three Months Ended

                                                              March 31
                                                        --------------------
                                                          2013       2012
                                                        ---------- ---------
Numerator:

  Net income attributable to Hubbell                     $  65.9    $  63.2

  Less: Earnings allocated to participating securities       0.2        0.2
                                                        ---------- ---------
  Net income available to common shareholders            $  65.7    $  63.0



Denominator:

  Average number of common shares outstanding               59.1       59.2

  Potential dilutive shares                                  0.5        0.7
                                                        ---------- ---------
  Average number of diluted shares outstanding              59.6       59.9
                                                        ---------- ---------


Earnings per Share:

  Basic                                                  $  1.11    $  1.06

  Diluted                                                $  1.10    $  1.05


                              HUBBELL INCORPORATED

                          Non-GAAP Financial Measures

                                  (unaudited)

                                 (in millions)



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


                                         March
                                        31, 2013          December 31, 2012
                                     -------------- ----------------------------
  Total Debt                          $     596.8    $                    596.7

  Total Hubbell's Shareholders'
  Equity                                  1,696.8                       1,661.2
                                     -------------- ----------------------------
  Total Capital                       $   2,293.6    $                  2,257.9
                                     -------------- ----------------------------


  Total Debt to Total Capital                  26%                           26%



  Total Debt                          $     596.8    $                    596.7

  Less: Cash and cash equivalents          (606.2)                       (645.0)

        Investments                         (51.5)                        (45.5)
                                     -------------- ----------------------------
  Net Debt                            $     (60.9)   $                    (93.8)
                                     -------------- ----------------------------


  Net Debt to Total Capital                   (3%)                          (4%)



  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
--------------------------------------------------------------------------------


                                             Three Months Ended March 31
                                     -------------------------------------------
                                         2013                   2012
                                     -------------- ----------------------------


  Net cash provided by operating
  activities                          $      42.7    $                     45.1

  Less: Capital Expenditures                (13.0)                        (11.4)
                                     -------------- ----------------------------
  Free cash flow                      $      29.7    $                     33.7
                                     -------------- ----------------------------


  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.





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#1693960]



SHARE THIS: Twitter StockTwits LinkedIn Google Plus SHORT URL: http://bdvt.co/Q4k

SIGN IN TO BOARDVOTE

FORGOT PASSWORD?