These preliminary results are anticipated to be consistent with the Company’s previously communicated expectation to deliver modest growth in adjusted diluted earnings per share relative to the first quarter of 2019. Strong results in the Utility Solutions segment driven by ongoing grid modernization and renewable energy trends, as well as footprint optimization productivity initiatives and positive price/cost drove performance in the first quarter. These factors allowed the Company to overcome headwinds incurred in the quarter as a result of disruptions related to the COVID-19 pandemic, primarily in the Electrical segment.
As a result of the challenging and highly uncertain economic environment, Hubbell also today announced that it is withdrawing 2020 guidance and provided an update on actions the Company is taking in response to current and anticipated impacts of the COVID-19 pandemic.
“At Hubbell, our priority is the safety and well-being of our employees, extended families, our customers and suppliers, our communities, and our shareholders,” said Chairman and CEO
As we consider the anticipated challenges we expect to face relating to the COVID-19 pandemic, we have reviewed all aspects of our business and implemented a series of cost management actions to sustain the organization through this economic uncertainty, including:
- The Board of Directors will forego its quarterly retainer payments for the second quarter
- Senior executives will take a 25% salary reduction in the second quarter
- All other executives will take a 15% salary reduction in the second quarter
- Salaried employees will take a 2-week furlough sometime during the second quarter
- Various other discretionary cost reduction and cash preservation actions
Concurrent with these cost actions, we are also providing additional support to our hourly employees that manufacture the products that are so essential to our communities. To that end, we are paying all applicable hourly employees with additional appreciation bonus pay during the second quarter.
To maximize our financial flexibility, the Company has also drawn
Conference Call Details
The full text of the press release announcing the results will be posted on Hubbell's corporate website under the Press Release section. You can also access this information by going to www.hubbell.com and selecting "Investors" from the options at the bottom of the page and then "Press Releases" from the drop-down menu.
The live audio of the conference call and accompanying materials will also be available and can be accessed by visiting Hubbell's Events and Presentations section. You can also access this information by going to www.hubbell.com and selecting "Investors" from the options at the bottom of the page and then "Events/Presentations" from the drop-down menu.
Audio replays of the conference call are available in three ways:
- Two hours after the conclusion of the original conference call by calling (855) 859-2056 and using passcode number 9341227. The replay will remain available until
May 30, 2020at 11:59 PM ET.
- One hour after the call by going to www.hubbell.com and selecting "Investors" from the options at the bottom of the page and then "Events/Presentations" from the drop-down menu.
- As a podcast 24 hours after the original conference call by going to www.hubbell.com and selecting "Investors" from the options at the bottom of the page and then "Events/Presentations" from the drop-down menu, then selecting "Past Events".
Forward Looking Statements
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 expectations regarding our financial results, condition and outlook, anticipated end markets and anticipated effects of the COVID-19 pandemic and the responses thereto, including the pandemic’s impact on general economic and market conditions, as well as on our business, customers, end markets, results of operations and financial condition and anticipated actions to be taken by management to sustain the Company during the economic uncertainty caused by the pandemic and related governmental and business actions, as well as other statements that are not strictly historic in nature. In addition, all statements regarding anticipated growth, changes in operating results, market conditions and economic conditions are forward-looking, including those regarding the adverse impact of the COVID-19 pandemic on the Company’s end markets. These statements may be identified by the use of forward-looking words or phrases such as “believe”, “expect”, “anticipate”, “plan”, “estimated”, “target”, “should”, “could”, “may”, "subject to", “continues”, “growing”, “projected”, “if”, “potential”, “will likely be”, and similar words and phrases. Such forward-looking statements are based on our current expectations and involve numerous assumptions, known and unknown risks, uncertainties and other factors which may cause actual and future performance or the Company’s achievements 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: our ability to effectively execute our business plan in light of the COVID-19 pandemic; the effectiveness of the actions that we take to address the effects of the COVID-19 pandemic; the outcome of contingencies or costs compared to amounts provided for such contingencies, including those with respect to pension withdrawal liabilities; achieving sales levels to meet revenue expectations; unexpected costs or charges, certain of which may be outside the Company’s control; the effects of tariffs and other trade actions taken by the
Hubbell Incorporated is an international manufacturer of high quality, reliable electrical products and utility solutions for a broad range of customer and end market applications. With 2019 revenues of
Dan Innamorato Hubbell Incorporated 40 Waterview DrivePO Box 1000 Shelton, CT06484 (475) 882-4000
Source: Hubbell Inc.