Hubbell Inc.

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Press Release $HUB.B Hubbell Inc.

0 COMMENTs 18 Jul
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Hubbell Reports Second Quarter Results: Net Sales of $801.3 Million and Earnings Per Diluted Share of $1.37


SHELTON,  CT.  (July 18, 2013) - Hubbell  Incorporated (NYSE:  HUBA, HUBB) today
reported operating results for the second quarter ended June 30, 2013.

Net  sales in the second quarter of 2013 were $801.3 million, an increase of 3%
compared  to  the  $778.4  million  reported  in  the  second  quarter of 2012.
 Operating  income was $132.1 million, or 16.5% of net sales, compared to $124.5
million,  or 16.0% of net sales, for  the comparable period of 2012.  Net income
in the second quarter of 2013 was $82.1 million versus $77.5 million reported in
the  second quarter of 2012. Earnings per diluted share were $1.37 in the second
quarter  of 2013 compared to $1.29 reported in the second quarter of 2012.  Free
cash  flow (defined as cash flow  from operations less capital expenditures) was
$52.8 million in the second quarter of 2013 versus $49.9 million reported in the
comparable period of 2012.

For the first six months of 2013 net sales were $1.5 billion, an increase of 3%
compared  to the same period last year.  Operating income was $229.8 million, or
14.9% of  net sales, compared to $226.2 million,  or 15.1% of net sales, for the
comparable  period  of  2012.  Net  income  in  the first six months of 2013 was
$148.0 million, an increase of 5% compared to the $140.7 million reported in the
first  six months of  2012.  Earnings per diluted  share were $2.47, or 6% above
the  $2.34 reported for the comparable period of 2012.  Free cash flow was $82.5
million compared to $83.6 million reported in the first six months of 2012.

OPERATIONS REVIEW

David  G. Nord, President and Chief Executive  Officer, said, "I am pleased with
our  performance in the  quarter which included  both higher sales and operating
margin  compared  to  2012.  The  sales  increase  was  due  to  the  impact  of
acquisitions  while  our  base  business  was  in  line  with last year's strong
results.  From a profitability perspective, we were able to expand our operating
margin  by fifty basis  points despite incurring  costs associated with facility
consolidations  in our  Power segment.   I am  also pleased  to announce that we
completed  the acquisition of Connector  Manufacturing Company during the second
quarter. CMC manufactures high quality mechanical and compression connectors and
has been added to our Electrical segment."

Mr. Nord continued "The macroeconomic environment in the second quarter modestly
improved   from  the  beginning  of  the  year.  U.S.  non-residential  activity
benefitted  from  higher  levels  of  renovation  projects, particularly for our
lighting  businesses.  North  American electrical  utility demand  was below the
prior  year which  benefitted from  unusually strong  spending due  to favorable
weather  conditions and high levels of transmission project activity. Demand for
our  industrial  businesses  was  mixed  while  the residential markets remained
strong."

SEGMENT REVIEW

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

Electrical  segment  net  sales  in  the  second quarter of 2013 increased 5% to
$564.5  million compared  to $536.3  million reported  in the  second quarter of
2012.  The  increase was primarily  due to acquisitions  which contributed 3% to
sales  in  the  quarter.   Organic  volume  increased due to higher shipments of
lighting  products partially offset by weaker industrial demand, most notably in
high  voltage test equipment.  Compared to the second quarter of 2012, operating
income  increased 9% to $88.9  million, or 15.7% of  net sales.  The increase in
operating  income was primarily due to the benefit of pricing and material costs
while productivity offset all other cost increases.

Hubbell's  Power segment  net sales  in the  second quarter  of 2013 were $236.8
million  compared to $242.1 million reported in the second quarter of 2012.  The
decrease  was  primarily  due  to  lower  levels of project related transmission
spending  and weaker distribution sales partially offset by the favorable impact
of  an acquisition.   Compared to  the second  quarter of 2012, operating income
declined  slightly to $43.2 million.  Operating  margin in the second quarter of
2013 was  18.2% compared to 17.9% reported in the comparable period of 2012. The
increase  in  operating  margin  was  primarily  due  to a favorable product mix
partially offset by facility consolidation costs.

SUMMARY & OUTLOOK

Mr.  Nord  commented,  "Looking  to  our  full  year outlook for 2013, we expect
overall  sales to increase in  the 4 to 6% range and  operating margin to expand
approximately  30 basis points. The sales outlook  has increased slightly due to
the  impact of  our recent  acquisition.  From  a profitability perspective, the
impact  of our  acquisition activity  will slightly  mute the level of operating
margin improvement."

Mr.  Nord  concluded,  "The  first  half  results  were  largely  in  line  with
expectations and we now turn our attention to navigating through the second half
of  the year where we will be focused on integrating our recent acquisitions and
driving  margin improvement.  Our financial position  remains strong and we plan
to  continue deploying our capital in value creating ways.  I am encouraged that
the  investments we have made in  productivity programs and business development
have translated into increased profitability."



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, 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, 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.

                                    #######

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




                             HUBBELL INCORPORATED

                  Condensed Consolidated Statement of Income

                                  (unaudited)

                    (in millions, except per share amounts)





                               Three Months Ended         Six Months Ended

                                     June 30                   June 30
                             ----------------------- ---------------------------

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


Net Sales                     $  801.3    $  778.4    $  1,541.4    $  1,502.2

Cost of goods sold               529.3       518.6       1,033.1       1,008.3
                             ----------- ----------- ------------- -------------
Gross Profit                     272.0       259.8         508.3         493.9

Selling & administrative
expenses                         139.9       135.3         278.5         267.7
                             ----------- ----------- ------------- -------------
Operating income                 132.1       124.5         229.8         226.2

  Operating income as a % of
  Net sales                       16.5%       16.0%         14.9%         15.1%

Interest expense, net             (7.3)       (7.1)        (14.6)        (14.3)

Other expense, net                (2.0)       (1.3)         (1.2)         (1.2)
                             ----------- ----------- ------------- -------------
Total other expense, net          (9.3)       (8.4)        (15.8)        (15.5)

Income before income taxes       122.8       116.1         214.0         210.7

Provision for income taxes        39.8        38.1          64.2          69.1
                             ----------- ----------- ------------- -------------
Net income                    $   83.0    $   78.0    $    149.8    $    141.6

Less: Net income attributable
to noncontrolling interest         0.9         0.5           1.8           0.9
                             ----------- ----------- ------------- -------------
Net income attributable to
Hubbell                       $   82.1    $   77.5    $    148.0    $    140.7
                             ----------- ----------- ------------- -------------




Earnings Per Share:

  Basic                       $   1.38    $   1.31    $     2.49    $     2.37

  Diluted                     $   1.37    $   1.29    $     2.47    $     2.34



Cash dividends per common
share                         $   0.45    $   0.41    $     0.90    $     0.82






                              HUBBELL INCORPORATED

                      Condensed Consolidated Balance Sheet

                                  (unaudited)

                                 (in millions)





                                             June 30, 2013     December 31, 2012
                                            ---------------   ------------------
ASSETS



Cash and cash equivalents                  $        586.6    $            645.0

Short-term investments                                7.0                   8.8

Accounts receivable, net                            468.8                 405.2

Inventories, net                                    384.7                 341.7

Deferred taxes and other                             57.7                  55.5
                                          ----------------- --------------------


   TOTAL CURRENT ASSETS                           1,504.8               1,456.2



Property, plant and equipment, net                  370.0                 364.7

Investments                                          39.5                  36.7

Goodwill                                            794.5                 755.5

Intangible assets, net                              293.0                 288.1

Other long-term assets                               39.2                  45.8
                                          ----------------- --------------------


   TOTAL ASSETS                            $      3,041.0    $          2,947.0
                                          ----------------- --------------------


LIABILITIES AND EQUITY



Accounts payable                           $        245.4    $            213.1

Accrued salaries, wages and employee
benefits                                             55.0                  75.4

Accrued insurance                                    44.0                  39.6

Other accrued liabilities                           108.0                 119.3
                                          ----------------- --------------------


   TOTAL CURRENT LIABILITIES                        452.4                 447.4



Long-term debt                                      596.9                 596.7

Other non-current liabilities                       248.2                 235.0
                                          ----------------- --------------------


   TOTAL LIABILITIES                              1,297.5               1,279.1



Hubbell Shareholders' Equity                      1,735.7               1,661.2

Noncontrolling interest                               7.8                   6.7
                                          ----------------- --------------------
   TOTAL EQUITY                                   1,743.5               1,667.9
                                          ----------------- --------------------


TOTAL LIABILITIES AND EQUITY               $      3,041.0    $          2,947.0
                                          ----------------- --------------------

                             HUBBELL INCORPORATED

                Condensed Consolidated Statement of Cash Flows

                                  (unaudited)

                                 (in millions)





                                                         Six Months Ended June
                                                                   30
                                                        ------------------------

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




Cash Flows From Operating Activities

   Net income attributable to Hubbell                    $   148.0    $  140.7

   Depreciation and amortization                              34.4        33.0

   Stock-based compensation expense                            5.7         5.3

   Deferred income taxes                                       7.8         6.8

   Changes in working capital                                (90.2)      (76.1)

   Contributions to defined benefit pension plans             (1.9)       (6.3)

   Other, net                                                  4.7         1.2
                                                        ------------ -----------


        Net cash provided by operating activities            108.5       104.6
                                                        ------------ -----------


Cash Flows From Investing Activities

   Capital expenditures                                      (26.0)      (21.0)

   Acquisition of businesses, net of cash acquired           (81.7)      (53.0)

   Net change in investments                                  (1.1)        2.1

   Other, net                                                  4.0         6.3
                                                        ------------ -----------


        Net cash used in investing activities               (104.8)      (65.6)
                                                        ------------ -----------


Cash Flows From Financing Activities

   Short-term debt repayments, net                               -        (2.7)

   Payment of dividends                                      (53.3)      (46.9)

   Repurchase of common shares                                (6.5)      (42.1)

   Proceeds from exercise of stock options                     1.1        19.8

   Other, net                                                  5.0         8.8
                                                        ------------ -----------


        Net cash used in financing activities                (53.7)      (63.1)
                                                        ------------ -----------


Effect of foreign exchange rate changes on cash and cash
equivalents                                                   (8.4)       (0.9)
                                                        ------------ -----------


Decrease in cash and cash equivalents                        (58.4)      (25.0)

Cash and cash equivalents

    Beginning of period                                      645.0       569.6
                                                        ------------ -----------
    End of period                                        $   586.6    $  544.6
                                                        ------------ -----------

                             HUBBELL INCORPORATED

                              Segment Information

                                  (unaudited)

                                 (in millions)







                               Three Months Ended
                                     June 30          Six Months Ended June 30
                             ----------------------- ---------------------------

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




Net Sales

     Electrical               $  564.5    $  536.3    $  1,079.8    $  1,041.4

     Power                       236.8       242.1         461.6         460.8
                             ----------- ----------- ------------- -------------
          Total Net Sales     $  801.3    $  778.4    $  1,541.4    $  1,502.2
                             ----------- ----------- ------------- -------------




Operating Income

     Electrical               $   88.9    $   81.2    $    150.5    $    145.0

     Power                        43.2        43.3          79.3          81.2
                             ----------- ----------- ------------- -------------
          Total Operating
Income                        $  132.1    $  124.5    $    229.8    $    226.2
                             ----------- ----------- ------------- -------------




Operating Income as a % of Net Sales

     Electrical                   15.7%       15.1%         13.9%         13.9%

     Power                        18.2%       17.9%         17.2%         17.6%

          Total                   16.5%       16.0%         14.9%         15.1%


                              HUBBELL INCORPORATED

                         Earnings Per Share Calculation

                                  (unaudited)

                    (in millions, except per share amounts)



                                       Three Months Ended     Six Months Ended

                                             June 30               June 30
                                      --------------------- --------------------
                                        2013       2012       2013       2012
                                      ---------- ---------- ---------- ---------
Numerator:

  Net income attributable to Hubbell   $  82.1    $  77.5    $ 148.0    $ 140.7

  Less: Earnings allocated to
  participating securities                 0.3        0.3        0.5        0.5
                                      ---------- ---------- ---------- ---------
  Net income available to common
  shareholders                         $  81.8    $  77.2    $ 147.5    $ 140.2



Denominator:

  Average number of common shares
  outstanding                             59.1       59.1       59.1       59.2

  Potential dilutive shares                0.5        0.6        0.5        0.6
                                      ---------- ---------- ---------- ---------
  Average number of diluted shares
  outstanding                             59.6       59.7       59.6       59.8
                                      ---------- ---------- ---------- ---------


Earnings per Share:

  Basic                                $  1.38    $  1.31    $  2.49    $  2.37

  Diluted                              $  1.37    $  1.29    $  2.47    $  2.34


                              HUBBELL INCORPORATED

                          Non-GAAP Financial Measures

                                  (unaudited)

                                 (in millions)



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


                                         June
                                       30, 2013          December 31, 2012
                                     ------------- -----------------------------
  Total Debt                          $    596.9    $                     596.7

  Total Hubbell's Shareholders'
  Equity                                 1,735.7                        1,661.2
                                     ------------- -----------------------------
  Total Capital                       $  2,332.6    $                   2,257.9
                                     ------------- -----------------------------


  Total Debt to Total Capital                 26%                            26%



  Total Debt                          $    596.9    $                     596.7

  Less: Cash and cash equivalents         (586.6)                        (645.0)

        Investments                        (46.5)                         (45.5)
                                     ------------- -----------------------------
  Net Debt                            $    (36.2)   $                     (93.8)
                                     ------------- -----------------------------


  Net Debt to Total Capital                  (2%)                           (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
--------------------------------------------------------------------------------


                                               Six Months Ended June 30
                                     -------------------------------------------
                                         2013                  2012
                                     ------------- -----------------------------


  Net cash provided by operating
  activities                          $    108.5    $                     104.6

  Less: Capital Expenditures               (26.0)                         (21.0)
                                     ------------- -----------------------------
  Free cash flow                      $     82.5    $                      83.6
                                     ------------- -----------------------------


  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.








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#1717245]



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