SHELTON, CT. (October 21, 2014) - The Board of Directors of Hubbell Incorporated (NYSE: HUBA, HUBB) today declared a 12% increase in the dividend rate, and announced the authorization of a stock repurchase program.
The Board declared a 12% increase in the common stock dividend rate. The new annual payment rate of $2.24 per share or $0.56 per quarter compares to the former rate of $2.00 or $0.50 per quarter. The dividend will be paid on December 15, 2014 to shareholders of record on November 28, 2014.
The share repurchase program authorizes the repurchase from time to time of up to $300 million of the Company's Class A and Class B common stock. Depending on numerous factors, including market conditions and alternative uses of cash, the Company may conduct discretionary repurchases through open market and privately negotiated transactions during the Company's normal trading window. The repurchase program that was authorized today expires in October of 2017.
"These two actions demonstrate our continued confidence in the Company's earnings outlook and commitment to delivering value to our shareholders," said Hubbell Chairman, President and Chief Executive Officer David G. Nord.
Certain statements contained in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements about the potential amount and annual rate of any future dividends, future repurchases of the Company's stock, and the Company's earnings outlook, and are based on the Company's reasonable current expectations.
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: the fact that future dividends are declared at the discretion of the Board of Directors; achieving sales levels to fulfill revenue expectations; unexpected costs or charges, certain of which may be outside the control of the Company; general economic and business conditions; 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, 2013.
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
40 Waterview Drive
P.O. Box 1000
Shelton, Connecticut 06484