Hubbell Inc.

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Press Release $HUB.B Hubbell Inc.

0 COMMENTs 28 Jan
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Hubbell Reports Fourth Quarter Results: Net Sales of $806.6 Million and Earnings Per Diluted Share of $1.38


SHELTON,  CT.   (January  28, 2014) -  Hubbell  Incorporated (NYSE:  HUBA, HUBB)
today reported operating results for the fourth quarter ended December 31, 2013.

Net  sales in the fourth quarter of 2013 were $806.6 million, an increase of 7%
compared  to  the  $752.5  million  reported  in  the  fourth  quarter of 2012.
 Operating  income was $126.2 million, or 15.6% of net sales, compared to $110.5
million,  or 14.7% of net sales, for  the comparable period of 2012.  Net income
in  the fourth quarter of 2013 was $82.0 million, an increase of 14% compared to
the  $71.9 million reported in the  fourth quarter of 2012. Earnings per diluted
share  were $1.38,  an increase  of 15% compared  to the  $1.20 reported  in the
fourth  quarter of 2012.  Free  cash flow (defined  as cash flow from operations
less  capital expenditures)  was $137.5  million in  the fourth quarter of 2013
versus $139.3 million reported in the comparable period of 2012.

Net  sales for the full year 2013 were  $3.2 billion, an increase of 5% compared
to  2012.  Operating income was $507.6 million,  or 15.9% of net sales, compared
to  $471.8 million, or 15.5% of  net sales, for the  comparable period of 2012.
 Net  income  for  the  full  year  2013 was  $326.5 million, an increase of 9%
compared  to the  $299.7 million  reported in  2012.  Earnings per diluted share
were  $5.47, or 9% above the $5.00 reported  for the comparable period of 2012.
 Free cash flow was $323.0 million compared to $300.0 million reported in 2012.

OPERATIONS REVIEW

David  G. Nord, President and Chief  Executive Officer, said, "Hubbell performed
well  in  the  fourth  quarter  as  our businesses remained focused on executing
through  mixed market conditions.  Our sales grew  7% while earnings per diluted
share  increased 15% compared to the fourth quarter  of 2012.  I am proud of the
organization's ability to close out 2013 on such a strong note and we are off to
a  good start in 2014 with three acquisitions  already completed in the month of
January.   These deals will add approximately $45 million in annual revenues and
demonstrate  our  continued  commitment  to  growing  the  enterprise  by adding
strategically attractive brands to the portfolio."

Mr.  Nord added "In reviewing  the full year results,  Hubbell delivered a solid
year  of operational performance.  Our entire team's  commitment to productivity
and  operational excellence enabled the organization  to reach a record level of
operating profit. In addition, our continued strong cash flow generation allowed
us  to create value  through a combination  of dividends, acquisitions and share
repurchases.  During 2013, the dividend was increased 11% and we spent over $125
million on a combination of acquisitions and share repurchases.  In addition, we
increased  our capital  expenditures by  20% to support  growth and productivity
initiatives.  These actions, along with our strong financial performance, helped
Hubbell increase total shareholder return."

SEGMENT REVIEW

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

Electrical  segment net  sales in  the fourth  quarter of  2013 increased 12% to
$585.2  million compared  to $521.4  million reported  in the  fourth quarter of
2012.  Acquisitions  added 5% to sales in the  quarter with the remainder of the
increase  being primarily driven by higher shipments of residential products and
high  voltage test equipment.  Compared to the fourth quarter of 2012, operating
income  increased 27% to $86.1 million, or  14.7% of net sales.  The increase in
operating  income was primarily  due to the  benefit of higher  volume and lower
costs.

Hubbell's  Power segment  net sales  in the  fourth quarter  of 2013 were $221.4
million  compared to $231.1 million reported in the fourth quarter of 2012.  The
sales  were impacted  by weaker  transmission spending  and lower  storm related
shipments.   Compared to the fourth  quarter of 2012, operating income decreased
6% to $40.1 million.  Operating margin in the fourth quarter of 2013 was 18.1%,
compared  to 18.4% reported  in the  comparable period  of 2012. The decrease in
operating  margin  was  primarily  due  to  lower  volume  partially  offset  by
productivity.

SUMMARY & OUTLOOK

Mr.  Nord commented, "As  I reflect back  on our performance  in 2013, I am very
proud  of  the  Hubbell  team's  accomplishments.  During  the  past  year,  our
leadership  team  spent  a  significant  amount  of time and energy building the
foundation  for a One  Hubbell strategy. We  made a lot  of progress and enjoyed
several  early successes with  this new approach.   I am confident this strategy
should  result  in  long-term  benefits  to  the  Company,  and  further enhance
shareholder value."

Mr.  Nord concluded, "Turning to 2014, third party forecasts for our end markets
suggest  a better  environment than  we experienced  in 2013. We expect the non-
residential  market for new  construction to improve,  the industrial markets to
expand  and  the  residential  market  to  remain  strong. The utility market is
expected  to  remain  challenging  in  the  near  term  where  overall demand is
anticipated to be flat. The combination of the end market growth and our already
completed  acquisitions should result in  sales increasing by approximately five
to  six  percent.  From  a  profitability  perspective,  we  plan  to expand our
operating  margins  by  approximately  20 to  30 basis  points.  The tax rate is
expected to increase to approximately 32.5%, which excludes any benefit from the
R&D  Tax  Credit.  We  also  plan  to  leverage our strong financial position to
enhance shareholder value through capital deployment with particular emphasis on
acquisitions.  This  puts  us  in  good  position  to continue to build upon the
positive momentum created in the past year."



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 2013 revenues of $3.2
billion,  Hubbell Incorporated  operates manufacturing  facilities in the United
States, Canada, Switzerland, Puerto Rico, Mexico, the People's Republic of China
("China"),  Italy,  the  United  Kingdom,  Brazil  and  Australia.  Hubbell also
participates  in joint  ventures in  Taiwan and  Hong Kong,  and maintains sales
offices  in Singapore,  China, India,  Mexico, South  Korea and countries in the
Middle East.  The corporate headquarters is located in Shelton, CT.

                                    #######

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            Year Ended

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

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


Net sales                     $  806.6    $  752.5    $  3,183.9    $  3,044.4

Cost of goods sold               535.7       502.7       2,113.4       2,032.2
                             ----------- ----------- ------------- -------------
Gross profit                     270.9       249.8       1,070.5       1,012.2

Selling & administrative
expenses                         144.7       139.3         562.9         540.4
                             ----------- ----------- ------------- -------------
Operating income                 126.2       110.5         507.6         471.8

  Operating income as a % of
  Net sales                       15.6%       14.7%         15.9%         15.5%

Interest expense, net             (7.5)       (7.5)        (29.5)        (29.0)

Other income (expense), net       (2.2)       (0.9)         (4.3)         (1.0)
                             ----------- ----------- ------------- -------------
Total other expense, net          (9.7)       (8.4)        (33.8)        (30.0)

Income before income taxes       116.5       102.1         473.8         441.8

Provision for income taxes        33.7        29.2         144.0         139.7
                             ----------- ----------- ------------- -------------
Net income                        82.8        72.9         329.8         302.1

Less: Net income attributable
to noncontrolling interest         0.8         1.0           3.3           2.4
                             ----------- ----------- ------------- -------------
Net income attributable to
Hubbell                       $   82.0    $   71.9    $    326.5    $    299.7
                             ----------- ----------- ------------- -------------




Earnings Per Share:

  Basic                       $   1.39    $   1.21    $     5.51    $     5.05

  Diluted                     $   1.38    $   1.20    $     5.47    $     5.00



Cash dividends per common
share                         $   0.50    $   0.45    $     1.85    $     1.68






                              HUBBELL INCORPORATED

                      Condensed Consolidated Balance Sheet

                                  (unaudited)

                                 (in millions)





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



Cash and cash equivalents              $            740.7    $            645.0

Short-term investments                               10.1                   8.8

Accounts receivable, net                            440.9                 405.2

Inventories, net                                    385.7                 341.7

Deferred taxes and other                             55.0                  55.5
                                      --------------------- --------------------


   TOTAL CURRENT ASSETS                           1,632.4               1,456.2



Property, plant and equipment, net                  377.1                 364.7

Investments                                          35.8                  36.7

Goodwill                                            800.4                 755.5

Intangible assets, net                              286.6                 288.1

Other long-term assets                               54.9                  45.8
                                      --------------------- --------------------


   TOTAL ASSETS                        $          3,187.2    $          2,947.0
                                      --------------------- --------------------


LIABILITIES AND EQUITY



Short-term debt                        $              0.3    $                -

Accounts payable                                    225.9                 213.1

Accrued salaries, wages and employee
benefits                                             74.7                  75.4

Accrued insurance                                    41.8                  39.6

Other accrued liabilities                           124.3                 119.3
                                      --------------------- --------------------


   TOTAL CURRENT LIABILITIES                        467.0                 447.4



Long-term debt                                      597.2                 596.7

Other non-current liabilities                       208.2                 235.0
                                      --------------------- --------------------


   TOTAL LIABILITIES                              1,272.4               1,279.1



Hubbell Shareholders' Equity                      1,906.4               1,661.2

Noncontrolling interest                               8.4                   6.7
                                      --------------------- --------------------
   TOTAL EQUITY                                   1,914.8               1,667.9
                                      --------------------- --------------------


TOTAL LIABILITIES AND EQUITY           $          3,187.2    $          2,947.0
                                      --------------------- --------------------

                              HUBBELL INCORPORATED

                         Earnings Per Share Calculation

                                  (unaudited)

                    (in millions, except per share amounts)



                                       Three Months Ended        Year Ended

                                           December 31           December 31
                                      --------------------- --------------------
                                        2013       2012       2013       2012
                                      ---------- ---------- ---------- ---------
Numerator:

  Net income attributable to Hubbell   $  82.0    $  71.9    $ 326.5    $ 299.7

  Less: Earnings allocated to
  participating securities                 0.2        0.2        1.0        1.0
                                      ---------- ---------- ---------- ---------
  Net income available to common
  shareholders                         $  81.8    $  71.7    $ 325.5    $ 298.7



Denominator:

  Average number of common shares
  outstanding                             59.0       59.1       59.1       59.1

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


Earnings per Share:

  Basic                                $  1.39    $  1.21    $  5.51    $  5.05

  Diluted                              $  1.38    $  1.20    $  5.47    $  5.00


                             HUBBELL INCORPORATED

                Condensed Consolidated Statement of Cash Flows

                                  (unaudited)

                                 (in millions)





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

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




Cash Flows From Operating Activities

   Net income attributable to Hubbell                   $   326.5    $   299.7

   Depreciation and amortization                             70.6         66.8

   Stock-based compensation expense                          14.3         15.8

   Deferred income taxes                                     13.3         27.5

   Changes in working capital                               (55.1)       (45.3)

   Contributions to defined benefit pension plans            (3.2)       (22.6)

   Other, net                                                15.4          7.2
                                                       ------------ ------------


        Net cash provided by operating activities           381.8        349.1
                                                       ------------ ------------


Cash Flows From Investing Activities

   Capital expenditures                                     (58.8)       (49.1)

   Acquisition of businesses, net of cash acquired          (96.5)       (90.7)

   Net change in investments                                 (0.6)         9.9

   Other, net                                                 4.8         13.8
                                                       ------------ ------------


        Net cash used in investing activities              (151.1)      (116.1)
                                                       ------------ ------------


Cash Flows From Financing Activities

   Short-term debt borrowings (repayments), net               0.3         (2.9)

   Payment of dividends                                    (109.5)      (122.3)

   Repurchase of common shares                              (31.0)       (75.6)

   Proceeds from exercise of stock options                    2.4         24.8

   Other, net                                                 6.9         14.3
                                                       ------------ ------------


        Net cash used in financing activities              (130.9)      (161.7)
                                                       ------------ ------------


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


Increase in cash and cash equivalents                        95.7         75.4

Cash and cash equivalents

    Beginning of period                                     645.0        569.6
                                                       ------------ ------------
    End of period                                       $   740.7    $   645.0
                                                       ------------ ------------

                             HUBBELL INCORPORATED

                              Segment Information

                                  (unaudited)

                                 (in millions)





                               Three Months Ended            Year Ended

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

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




Net Sales

     Electrical               $  585.2    $  521.4    $  2,262.6    $  2,114.6

     Power                       221.4       231.1         921.3         929.8
                             ----------- ----------- ------------- -------------
          Total Net Sales     $  806.6    $  752.5    $  3,183.9    $  3,044.4
                             ----------- ----------- ------------- -------------




Operating Income

     Electrical               $   86.1    $   68.0    $    341.1    $    303.7

     Power                        40.1        42.5         166.5         168.1
                             ----------- ----------- ------------- -------------
          Total Operating
Income                        $  126.2    $  110.5    $    507.6    $    471.8
                             ----------- ----------- ------------- -------------




Operating Income as a % of Net Sales

     Electrical                   14.7%       13.0%         15.1%         14.4%

     Power                        18.1%       18.4%         18.1%         18.1%

          Total                   15.6%       14.7%         15.9%         15.5%


                              HUBBELL INCORPORATED

                          Non-GAAP Financial Measures

                                  (unaudited)

                                 (in millions)



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


                                       December
                                       31, 2013           December 31, 2012
                                   ----------------- ---------------------------
  Total Debt                        $        597.5    $                   596.7

  Total Hubbell's Shareholders'
  Equity                                   1,906.4                      1,661.2
                                   ----------------- ---------------------------
  Total Capital                     $      2,503.9    $                 2,257.9
                                   ----------------- ---------------------------


  Total Debt to Total Capital                   24%                          26%



  Total Debt                        $        597.5    $                   596.7

  Less: Cash and cash equivalents           (740.7)                      (645.0)

        Investments                          (45.9)                       (45.5)
                                   ----------------- ---------------------------
  Net Debt                          $       (189.1)   $                   (93.8)
                                   ----------------- ---------------------------


  Net Debt to Total Capital                    (8%)                         (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
--------------------------------------------------------------------------------


                                               Year Ended December 31
                                   ---------------------------------------------
                                         2013                   2012
                                   ----------------- ---------------------------


  Net cash provided by operating
  activities                        $        381.8    $                   349.1

  Less: Capital Expenditures                 (58.8)                       (49.1)
                                   ----------------- ---------------------------
  Free cash flow                    $        323.0    $                   300.0
                                   ----------------- ---------------------------


  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 GlobeNewswire on behalf of
GlobeNewswire 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 GlobeNewswire
[HUG#1757423]



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