Hubbell Inc.

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Press Release $HUB.B Hubbell Inc.

0 COMMENTs 17 Oct
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Hubbell Reports Third Quarter Results: Net Sales of $835.9 Million and Earnings Per Diluted Share of $1.62


SHELTON,  CT.   (October  17, 2013) -  Hubbell  Incorporated (NYSE:  HUBA, HUBB)
today   reported  operating  results  for  the  third  quarter  ended  September
30, 2013.

Net  sales in the third quarter of  2013 were $835.9 million, an increase of 6%
compared to the $789.7 million reported in the third quarter of 2012.  Operating
income was $151.6 million, or 18.1% of net sales, compared to $135.1 million, or
17.1% of  net sales, for the comparable period of 2012.  Net income in the third
quarter  of 2013 was  $96.5 million  versus $87.1  million reported in the third
quarter  of 2012. Earnings per diluted share were  $1.62 in the third quarter of
2013 compared  to $1.45 reported  in the third  quarter of 2012.  Free cash flow
(defined  as cash  flow from  operations less  capital expenditures)  was $103.0
million  in  the  third  quarter  of  2013 versus  $77.1 million reported in the
comparable period of 2012.

For  the first nine months  of 2013 net sales were  $2.4 billion, an increase of
4% compared  to the same period last year.  Operating income was $381.4 million,
or  16.0% of net sales, compared  to $361.3 million, or  15.8% of net sales, for
the  comparable period of 2012.  Net income in the first nine months of 2013 was
$244.5 million, an increase of 7% compared to the $227.8 million reported in the
first  nine months of 2012.  Earnings per  diluted share were $4.09, or 8% above
the $3.80 reported for the comparable period of 2012.  Free cash flow was $185.5
million compared to $160.7 million reported in the first nine months of 2012.

 OPERATIONS REVIEW

 David  G.  Nord,  President  and  Chief  Executive  Officer, said, "We reported
another  quarter of  strong performance  with higher  sales and operating margin
compared  to  2012.  The  sales  increase  was  largely  due  to  the  impact of
acquisitions  as well  as strength  in several  areas of the Electrical segment.
 From a profitability perspective, we were able to increase earnings per diluted
share  by 12% and  I am  proud of  the organization's  ability to  deliver these
results with little help from our markets.  I would also like to report that the
two  recent  acquisitions  that  we  announced  on  our  July  earnings call are
integrating very smoothly into the Hubbell family."

 Mr.  Nord continued "The demand in our end markets during the third quarter was
mixed.  In the construction markets, U.S. non-residential activity increased due
to  renovation and relight activities while  the residential market continued to
expand  at a  double-digit pace.   North American  electrical utility demand was
below  the prior year  as utility companies  continue to face regulatory issues,
weak  electricity usage  and few  rate increases.  Our businesses that serve the
industrial  markets were higher primarily due  to the strength of the extractive
industry sector."

 SEGMENT REVIEW

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

 Electrical  segment  net  sales  in  the  third quarter of 2013 increased 8% to
$597.6  million  compared  to  $551.8  million  reported in the third quarter of
2012.  The  increase was primarily  due to acquisitions  which contributed 5% to
sales  in the quarter.  The organic volume  increase was led by higher shipments
of  lighting products.  Compared to the  third quarter of 2012, operating income
increased  15% to  $104.5  million,  or  17.5% of  net  sales.   The increase in
operating  income was primarily  due to the  benefit of higher  volume and lower
material costs.

 Hubbell's  Power segment  net sales  in the  third quarter  of 2013 were $238.3
million  compared to $237.9 million reported  in the third quarter of 2012.  The
sales  were impacted  by weaker  overall utility  demand and unfavorable foreign
currency translation offset by the favorable impact of an acquisition.  Compared
to  the  third  quarter  of  2012, operating  income increased to $47.1 million.
 Operating  margin in  the third  quarter of  2013 was 19.8% compared  to 18.7%
reported  in the comparable period of 2012. The increase in operating margin was
primarily due to productivity and a favorable product mix.

 SUMMARY & OUTLOOK

 Mr. Nord commented, "Looking to the remainder of 2013, we remain highly focused
and  committed to achieving our financial goals  for the year. For the full year
2013, we  expect net sales to increase by approximately 5% and operating margins
to expand by approximately 40 basis points."

 Mr.  Nord concluded,  "Turning to  2014, third party  forecasts for our markets
point  towards growth in the upcoming year. That growth is expected to be led by
the  construction markets, which account for  approximately fifty percent of our
overall  sales. We  would also  expect modest  growth in  our industrial markets
while  utility  spending  is  likely  to  remain  challenging given the level of
uncertainty  that persists in  that market. So  overall we currently believe the
end  market growth  to be  in the  two to  four percent  range for  2014. From a
profitability  perspective,  we  continue  to  plan  for expanding our operating
margins  into the  future. The  organization remains  highly engaged  in driving
productivity  programs. This will continue to be a critical element of improving
operating margins as the price and material benefits experienced in 2013 are not
likely  to continue. However, given the level of near term volatility, we expect
to  provide a  more detailed  outlook on  our next  scheduled conference call in
January."

 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         Nine Months Ended

                                  September 30              September 30
                             ----------------------- ---------------------------

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


 Net sales                    $  835.9    $  789.7    $  2,377.3    $  2,291.9

 Cost of goods sold              544.6       521.2       1,577.7       1,529.5
                             ----------- ----------- ------------- -------------
 Gross profit                    291.3       268.5         799.6         762.4

 Selling & administrative
 expenses                        139.7       133.4         418.2         401.1
                             ----------- ----------- ------------- -------------
 Operating income                151.6       135.1         381.4         361.3

   Operating income as a % of
   Net sales                      18.1%       17.1%         16.0%         15.8%

 Interest expense, net            (7.4)       (7.2)        (22.0)        (21.5)

 Other (expense) income, net      (0.9)        1.1          (2.1)         (0.1)
                             ----------- ----------- ------------- -------------
 Total other expense, net         (8.3)       (6.1)        (24.1)        (21.6)

 Income before income taxes      143.3       129.0         357.3         339.7

 Provision for income taxes       46.1        41.4         110.3         110.5
                             ----------- ----------- ------------- -------------
 Net income                       97.2        87.6         247.0         229.2

 Less: Net income
 attributable to
 noncontrolling interest           0.7         0.5           2.5           1.4
                             ----------- ----------- ------------- -------------
 Net income attributable to
 Hubbell                      $   96.5    $   87.1    $    244.5    $    227.8
                             ----------- ----------- ------------- -------------




 Earnings Per Share:

   Basic                      $   1.63    $   1.47    $     4.12    $     3.84

   Diluted                    $   1.62    $   1.45    $     4.09    $     3.80



 Cash dividends per common
 share                        $   0.45    $   0.41    $     1.35    $     1.23






                              HUBBELL INCORPORATED

                      Condensed Consolidated Balance Sheet

                                  (unaudited)

                                 (in millions)





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



 Cash and cash equivalents           $             630.4    $            645.0

 Short-term investments                             10.5                   8.8

 Accounts receivable, net                          499.5                 405.2

 Inventories, net                                  401.9                 341.7

 Deferred taxes and other                           54.0                  55.5
                                    ---------------------- --------------------


    TOTAL CURRENT ASSETS                         1,596.3               1,456.2



 Property, plant and equipment, net                370.3                 364.7

 Investments                                        35.7                  36.7

 Goodwill                                          805.2                 755.5

 Intangible assets, net                            292.8                 288.1

 Other long-term assets                             40.9                  45.8
                                    ---------------------- --------------------


    TOTAL ASSETS                     $           3,141.2    $          2,947.0
                                    ---------------------- --------------------


 LIABILITIES AND EQUITY



 Short-term debt                     $               0.1    $                -

 Accounts payable                                  235.2                 213.1

 Accrued salaries, wages and
 employee benefits                                  68.8                  75.4

 Accrued insurance                                  46.0                  39.6

 Other accrued liabilities                         134.5                 119.3
                                    ---------------------- --------------------


    TOTAL CURRENT LIABILITIES                      484.6                 447.4



 Long-term debt                                    597.1                 596.7

 Other non-current liabilities                     255.6                 235.0
                                    ---------------------- --------------------


    TOTAL LIABILITIES                            1,337.3               1,279.1



 Hubbell Shareholders' Equity                    1,795.8               1,661.2

 Noncontrolling interest                             8.1                   6.7
                                    ---------------------- --------------------
    TOTAL EQUITY                                 1,803.9               1,667.9
                                    ---------------------- --------------------


 TOTAL LIABILITIES AND EQUITY        $           3,141.2    $          2,947.0
                                    ---------------------- --------------------

                              HUBBELL INCORPORATED

                 Condensed Consolidated Statement of Cash Flows

                                  (unaudited)

                                 (in millions)





                                                           Nine Months Ended
                                                              September 30
                                                        ------------------------

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




 Cash Flows From Operating Activities

    Net income attributable to Hubbell                   $   244.5    $  227.8

    Depreciation and amortization                             52.5        49.2

    Stock-based compensation expense                           8.4         8.0

    Deferred income taxes                                     14.7        16.0

    Changes in working capital                              (106.1)      (98.0)

    Contributions to defined benefit pension plans            (2.5)      (22.0)

    Other, net                                                14.4        11.0
                                                        ------------ -----------


         Net cash provided by operating activities           225.9       192.0
                                                        ------------ -----------


 Cash Flows From Investing Activities

    Capital expenditures                                     (40.4)      (31.3)

    Acquisition of businesses, net of cash acquired          (96.5)      (53.0)

    Net change in investments                                 (0.8)        8.7

    Other, net                                                 4.4        13.7
                                                        ------------ -----------


         Net cash used in investing activities              (133.3)      (61.9)
                                                        ------------ -----------


 Cash Flows From Financing Activities

    Short-term debt borrowings (repayments)                    0.1        (2.7)

    Payment of dividends                                     (79.9)      (71.3)

    Repurchase of common shares                              (31.0)      (55.6)

    Proceeds from exercise of stock options                    1.5        21.4

    Other, net                                                 5.4        10.7
                                                        ------------ -----------


         Net cash used in financing activities              (103.9)      (97.5)
                                                        ------------ -----------


 Effect of foreign exchange rate changes on cash and
 cash equivalents                                             (3.3)        3.4
                                                        ------------ -----------


 (Decrease) increase in cash and cash equivalents            (14.6)       36.0

 Cash and cash equivalents

     Beginning of period                                     645.0       569.6
                                                        ------------ -----------
     End of period                                       $   630.4    $  605.6
                                                        ------------ -----------

                              HUBBELL INCORPORATED

                              Segment Information

                                  (unaudited)

                                 (in millions)







                              Three Months Ended          Nine Months Ended
                                 September 30               September 30
                           ------------------------- ---------------------------

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




 Net Sales

      Electrical            $  597.6    $    551.8    $  1,677.4    $  1,593.2

      Power                    238.3         237.9         699.9         698.7
                           ----------- ------------- ------------- -------------
           Total Net
 Sales                      $  835.9    $    789.7    $  2,377.3    $  2,291.9
                           ----------- ------------- ------------- -------------




 Operating Income

      Electrical            $  104.5    $     90.7    $    255.0    $    235.7

      Power                     47.1          44.4         126.4         125.6
                           ----------- ------------- ------------- -------------
           Total
 Operating Income           $  151.6    $    135.1    $    381.4    $    361.3
                           ----------- ------------- ------------- -------------




 Operating Income as a % of Net Sales

      Electrical                17.5%         16.4%         15.2%         14.8%

      Power                     19.8%         18.7%         18.1%         18.0%

           Total                18.1%         17.1%         16.0%         15.8%


                              HUBBELL INCORPORATED

                         Earnings Per Share Calculation

                                  (unaudited)

                    (in millions, except per share amounts)



                                      Three Months Ended     Nine Months Ended

                                         September 30          September 30
                                     --------------------- --------------------
                                       2013       2012       2013       2012
                                     ---------- ---------- ---------- ---------
 Numerator:

   Net income attributable to Hubbell $  96.5    $  87.1    $ 244.5    $ 227.8

   Less: Earnings allocated to
   participating securities               0.3        0.3        0.8        0.8
                                     ---------- ---------- ---------- ---------
   Net income available to common
   shareholders                       $  96.2    $  86.8    $ 243.7    $ 227.0



 Denominator:

   Average number of common shares
   outstanding                           59.1       59.1       59.1       59.2

   Potential dilutive shares              0.4        0.6        0.4        0.6
                                     ---------- ---------- ---------- ---------
   Average number of diluted shares
   outstanding                           59.5       59.7       59.5       59.8
                                     ---------- ---------- ---------- ---------


 Earnings per Share:

   Basic                              $  1.63    $  1.47    $  4.12    $  3.84

   Diluted                            $  1.62    $  1.45    $  4.09    $  3.80


                              HUBBELL INCORPORATED

                          Non-GAAP Financial Measures

                                  (unaudited)

                                 (in millions)



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


                                       September
                                        30, 2013          December 31, 2012
                                   ------------------ -------------------------
   Total Debt                       $         597.2    $                 596.7

   Total Hubbell's Shareholders'
   Equity                                   1,795.8                    1,661.2
                                   ------------------ -------------------------
   Total Capital                    $       2,393.0    $               2,257.9
                                   ------------------ -------------------------


   Total Debt to Total Capital                   25%                        26%



   Total Debt                       $         597.2    $                 596.7

   Less: Cash and cash equivalents           (630.4)                    (645.0)

         Investments                          (46.2)                     (45.5)
                                   ------------------ -------------------------
   Net Debt                         $         (79.4)   $                 (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
-------------------------------------------------------------------------------


                                          Nine Months Ended September 30
                                   --------------------------------------------
                                         2013                   2012
                                   ------------------ -------------------------


   Net cash provided by operating
   activities                       $         225.9    $                 192.0

   Less: Capital Expenditures                 (40.4)                     (31.3)
                                   ------------------ -------------------------
   Free cash flow                   $         185.5    $                 160.7
                                   ------------------ -------------------------


   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#1736256]



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