Press Release
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ORANGE, CT. (January 17, 2001) -- Hubbell Incorporated (NYSE: HUBA, HUBB) today reported its fourth quarter and full year 2000 results.
For the fourth quarter of 2000, the Company reported a 4% increase in net income to $28.3 million versus $27.2 million reported in the same quarter of the prior year. Fully diluted earnings per share rose by 14% to $.48 versus $.42. On the same year-over-year comparative basis, sales were higher by less than 1% at $346.1 million as compared to $343.3 million.
For the full year 2000, the Company reported net income of $138.2 million and fully diluted earnings per share of $2.25 as compared to the prior years results of $145.8 million and $2.21, respectively. Sales in 2000 were $1,424.1 million versus $1,451.8 million in the prior year. On a continuing operations basis, sales rose modestly.
The reported results for all comparative periods were affected by a number of events. These events and their timing were:
- Hubbells continuing program of share repurchases on the open market which has been in place since January of 1998. During the year 2000, the Company purchased 5.6 million shares, and expects to complete the full $300 million authorization in the first quarter of 2001.
At its meeting in December 2000, the Board of Directors authorized repurchase of an additional $300 million of Class A and Class B shares. This authorization is expected to be completed over a three year period, and will begin after the current program is completed.
- The benefits of a full years results from the 1999 acquisitions of Chardon Electrical Components and Haefely Test AG.
- The sale of the Kerite operation in September of 1999; the April 2000 sale of WavePacer® DSL assets which provided a $36.2 million pre-tax gain in the second quarter.
- Special and non-recurring charges as well as the reversal of previous accruals for programs no longer needed recorded in the first two quarters of 2000 that totaled $23.7 million.
- The addition to the Company of the acquisitions of GAI-Tronics during the third quarter and Temco Electrical Products in the fourth quarter of 2000.
In commenting on its operating experience in the fourth quarter, the Company cited two countervailing trends:
- Internally, the Company continued to make progress in resolving difficulties at underperforming units,
- Externally, the pace of business across many of Hubbells industrial markets continued to slow.
The contrast was evident in the Power Systems segment where operating profit rose by 6% on a 2% decline in sales year-over-year. With return on sales for the segment reaching its highest level of the year in the fourth quarter, the Company is approaching its objectives for cost and manufacturing efficiencies under a reorganization program begun in 1999. At the same time order input, which had been relatively strong earlier in 2000, continued to decline in the years final quarter as utility industry customers postponed necessary upgrades to the transmission and distribution infrastructure.
Hubbells Electrical Segment was impacted by the same off-setting influences. In the fourth quarter and on the same year-over-year comparative basis, operating profit was flat on a 3% decline in sales. Improving profits were seen in the Wiring Systems business where the Pulsecom unit moved to significant profits compared to a loss in the prior year. The commodity product operations, which expect to reach and maintain profitability in the first quarter of 2001, reported a modest sales increase and continued to make progress in reducing its costs.
The Industrial Technology segment (re-named to better reflect its expanding product breadth) benefited from the inclusion of the GAI-Tronics acquisition completed in July and reported a 40% increase in sales. The segment did not escape the effects of the slowing industrial economy, operating profit in total declined at the segments continuing operations which serve those markets, but the strategic objective of transitioning this group to higher growth markets continued to make progress during the quarter.
Certain statements contained herein may constitute forward-looking statement within the meaning of the Private Securities Litigation Reform Act of 1995. 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: 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 competition.
Hubbell Incorporated is an international manufacturer of quality electrical and electronic products for commercial, industrial, utility, and telecommunications markets. With approximately $1.4 billion in annual revenues, Hubbell Incorporated operates manufacturing facilities in North America, Puerto Rico, Mexico, Switzerland, and the United Kingdom, participates in a joint venture in Taiwan, and maintains sales offices in Singapore, Hong Kong, South Korea, and the Middle East. The corporate headquarters is located in Orange, CT.
THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
||||||||
DECEMBER 31 |
DECEMBER 31 |
||||||||
2000 |
1999 |
2000 |
1999 |
||||||
Net sales |
$ |
346.1 |
$ |
343.3 |
$ |
1,424.1 |
$ |
1,451.8 |
|
Cost of Goods Sold |
254.8 |
249.3 |
1,055.0 |
* |
1,042.8 |
||||
Gross Profit |
91.3 |
94.0 |
369.1 |
409.0 |
|||||
Special charge (credit), net |
- |
- |
(0.1) |
- |
|||||
Selling & Administrative Expense |
53.6 |
56.4 |
220.9 |
223.4 |
|||||
(Gain) on Sale of Business |
- |
- |
(36.2) |
(8.8) |
|||||
Total Operating Income |
37.7 |
37.6 |
184.5 |
194.4 |
|||||
Investment Income |
3.9 |
2.8 |
15.9 |
13.4 |
|||||
Interest Expense |
(5.9) |
(3.5) |
(19.7) |
(15.9) |
|||||
Other income, net |
- |
(0.2) |
3.6 |
5.1 |
|||||
Total Other Income (Expense) |
(2.0) |
(0.9) |
(0.2) |
2.6 |
|||||
Income before income taxes |
35.7 |
36.7 |
184.3 |
197.0 |
|||||
Provision for income taxes |
7.4 |
9.5 |
46.1 |
51.2 |
|||||
Net income |
$ |
28.3 |
$ |
27.2 |
$ |
138.2 |
$ |
145.8 |
|
Earnings per share - basic |
$0.48 |
$0.42 |
$2.26 |
$2.24 |
|||||
Earnings per share - diluted |
$0.48 |
$0.42 |
$2.25 |
$2.21 |
|||||
Average number of shares outstanding - basic |
59,016 |
64,533 |
61,160 |
64,951 |
|||||
Average number of shares outstanding - diluted |
59,134 |
64,891 |
61,312 |
65,829 |
|||||
* 2000 includes a special charge of $20.3 for product rationalizations. |
|||||||||
THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
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DECEMBER 31 |
DECEMBER 31 |
||||||||
2000 |
1999 |
2000 |
1999 |
||||||
Net Sales |
|||||||||
Electrical |
$ |
216.9 |
$ |
222.8 |
$ |
928.6 |
$ |
965.4 |
|
Power |
92.2 |
94.3 |
372.9 |
399.5 |
|||||
Industrial |
37.0 |
26.2 |
122.6 |
86.9 |
|||||
Total Net Sales |
346.1 |
343.3 |
1,424.1 |
1,451.8 |
|||||
Operating Profit |
|||||||||
Electrical |
23.8 |
23.6 |
122.3 |
134.6 |
|||||
Special & Non-recurring Charge, net |
- |
- |
(19.2) |
- |
|||||
Gain on Sale of Business |
- |
- |
36.2 |
- |
|||||
Power |
10.7 |
10.1 |
39.7 |
42.6 |
|||||
Special & Non-recurring Charge, net |
- |
- |
(3.7) |
- |
|||||
Gain on Sale of Business |
- |
- |
8.8 |
||||||
Industrial |
3.2 |
3.9 |
10.0 |
8.4 |
|||||
Special Charge |
- |
- |
(0.8) |
- |
|||||
Total Operating Profit |
37.7 |
37.6 |
184.5 |
194.4 |
|||||
Other income, net |
(2.0) |
(0.9) |
(0.2) |
2.6 |
|||||
Income before income taxes |
35.7 |
36.7 |
184.3 |
197.0 |
|||||
Provision for income taxes |
7.4 |
9.5 |
46.1 |
51.2 |
|||||
Net income |
$ |
28.3 |
$ |
27.2 |
$ |
138.2 |
$ |
145.8 |
|
Earnings per share - basic |
$0.48 |
$0.42 |
$2.26 |
$2.24 |
|||||
Earnings per share - diluted |
$0.48 |
$0.42 |
$2.25 |
$2.21 |
|||||
Average number of shares outstanding - basic |
59,016 |
64,533 |
61,160 |
64,951 |
|||||
Average number of shares outstanding - diluted |
59,134 |
64,891 |
61,312 |
65,829 |
|||||