Press Release
« Back
Hubbell Reports Results for Third Quarter, Nine Months 2000
ORANGE, Conn.--(BUSINESS WIRE)--Oct. 19, 2000--Hubbell
Incorporated (NYSE: HUBA, HUBB) today reported its results for the
third quarter and nine months ended September 30, 2000.
For the third quarter, sales were $360.8 million versus $372.4 million in the prior year. Net income totaled $33.0 million and diluted earnings per share, were $.55 versus the prior year's totals for the equivalent period of $35.8 million and $.54, respectively.
Sales for the first nine months of 2000 were $1,078.0 million as compared to $1,108.5 million for the corresponding period of the prior year. Net income was $109.9 versus $118.6 and diluted earnings per share, were $1.78 versus $1.82.
Results and their consequent comparisons for all periods were impacted by a number of events. These events and their timing were:
In commenting on its business during the third quarter of 2000, the Company noted two countervailing influences:
-- The Company continued to make progress in addressing recent
underperformance at its Power Systems segment and in its
commodity product manufacture and distribution.
-- Concurrently, however, the pace of business in a number of
industrial markets continued to slow generating lower volume
of orders and sales at some Hubbell operations.
Internal operating improvement was most evident in the Power Systems segment where, on a continuing operations basis, operating profit rose by better than 54% on 15% lower sales volume year-over-year. While the pace of order input is likely to remain modest for the remainder of the year, continuing profitability improvements are possible.
Hubbell's Electrical Segment demonstrated the offsetting influences as well. The segment's total sales declined by 3% even as operating profit rose by nearly the same percentage. Lower sales at the Pulsecom and commodity product operations offset modest increases reported by the wiring systems and lighting product lines. Conversely, operating profit increases for the quarter at wiring systems and Pulsecom were sufficient to counter year-over-year declines at Lighting and in commodity products to keep the segment on a positive comparison. Those commodity product operations reported their first profitable quarter since the third quarter of 1999; while normalized profitability from these operations is not expected until next year, the progress to-date is encouraging.
Hubbell's Other Segment reported strong comparisons for the quarter before or after acquisitions. Reported sales grew by better than 40% and operating profit more than doubled. The Haefely and GAI-Tronics acquisitions contributed the majority of the improvement, but the Gleason Reel and Industrial Controls operations also reported higher profits.
Certain statements contained herein may constitute forward-looking statement within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words or phrases such as "expects," "projected," "scheduled," and "unanticipated." 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; competition; successfully completing the Company's consolidation, streamlining, and reorganization program and other factors.
Hubbell Incorporated is an international manufacturer of quality electrical and electronic products for commercial, industrial, utility, and telecommunications markets. With $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.
For the third quarter, sales were $360.8 million versus $372.4 million in the prior year. Net income totaled $33.0 million and diluted earnings per share, were $.55 versus the prior year's totals for the equivalent period of $35.8 million and $.54, respectively.
Sales for the first nine months of 2000 were $1,078.0 million as compared to $1,108.5 million for the corresponding period of the prior year. Net income was $109.9 versus $118.6 and diluted earnings per share, were $1.78 versus $1.82.
Results and their consequent comparisons for all periods were impacted by a number of events. These events and their timing were:
| -- | Hubbell's program of stock repurchase on the open market which has been in place since January of 1998. During the third quarter of the current year, the Company purchased 1.6 million shares. |
| -- | In 1999: the acquisition of Haefely and the sale of the Kerite subsidiary during the third quarter. |
| -- | In 2000: Asset sales in the first quarter, a number of special charges as well as reversals of prior restructuring charges impacted the first and second quarters, the sale of WavePacer assets during the second quarter, and the acquisition of GAI-Tronics during the third quarter. |
In commenting on its business during the third quarter of 2000, the Company noted two countervailing influences:
-- The Company continued to make progress in addressing recent
underperformance at its Power Systems segment and in its
commodity product manufacture and distribution.
-- Concurrently, however, the pace of business in a number of
industrial markets continued to slow generating lower volume
of orders and sales at some Hubbell operations.
Internal operating improvement was most evident in the Power Systems segment where, on a continuing operations basis, operating profit rose by better than 54% on 15% lower sales volume year-over-year. While the pace of order input is likely to remain modest for the remainder of the year, continuing profitability improvements are possible.
Hubbell's Electrical Segment demonstrated the offsetting influences as well. The segment's total sales declined by 3% even as operating profit rose by nearly the same percentage. Lower sales at the Pulsecom and commodity product operations offset modest increases reported by the wiring systems and lighting product lines. Conversely, operating profit increases for the quarter at wiring systems and Pulsecom were sufficient to counter year-over-year declines at Lighting and in commodity products to keep the segment on a positive comparison. Those commodity product operations reported their first profitable quarter since the third quarter of 1999; while normalized profitability from these operations is not expected until next year, the progress to-date is encouraging.
Hubbell's Other Segment reported strong comparisons for the quarter before or after acquisitions. Reported sales grew by better than 40% and operating profit more than doubled. The Haefely and GAI-Tronics acquisitions contributed the majority of the improvement, but the Gleason Reel and Industrial Controls operations also reported higher profits.
Certain statements contained herein may constitute forward-looking statement within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words or phrases such as "expects," "projected," "scheduled," and "unanticipated." 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; competition; successfully completing the Company's consolidation, streamlining, and reorganization program and other factors.
Hubbell Incorporated is an international manufacturer of quality electrical and electronic products for commercial, industrial, utility, and telecommunications markets. With $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.
HUBBELL INCORPORATED
CONSOLIDATED STATEMENT OF INCOME
(000's omitted except per share data) unaudited
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2000 1999 2000 1999
Net Sales
Electrical $ 234.4 $ 241.5 $ 711.7 $ 742.6
Power 89.9 105.3 280.7 305.2
Other 36.5 25.6 85.6 60.7
-------- -------- --------- --------
Total Net Sales 360.8 372.4 1,078.0 1,108.5
-------- -------- --------- --------
Operating Profit
Electrical 33.2 32.4 98.5 111.0
Special &
Non-recurring Charge, net -- -- (19.2) --
Gain on Sale
of Business -- -- 36.2 --
Power 9.7 6.3 29.0 32.5
Special &
Non-recurring
Charge, net -- -- (3.7) --
Gain on Sale
of Business -- 8.8 -- 8.8
Other 3.2 1.5 6.8 4.4
Special Charge -- -- (0.8) --
-------- -------- --------- --------
Total Operating
Profit 46.1 49.0 146.8 156.7
-------- -------- --------- --------
Other income, net (1.5) (0.6) 1.7 3.6
-------- -------- --------- --------
Income before
income taxes 44.6 48.4 148.5 160.3
Provision for
income taxes 11.6 12.6 38.6 41.7
-------- -------- --------- --------
Net income $ 33.0 $ 35.8 $ 109.9 $ 118.6
-------- -------- --------- --------
Earnings per
share -- basic $ 0.55 $ 0.55 $ 1.78 $ 1.82
Earnings per
share - diluted $ 0.55 $ 0.54 $ 1.77 $ 1.79
Average number of shares
outstanding - basic 60,257 64,961 61,875 65,090
Average number of shares
outstanding - diluted 60,406 65,992 62,039 66,164
HUBBELL INCORPORATED
CONSOLIDATED STATEMENT OF INCOME
(000's omitted except per share data) unaudited
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2000 1999 2000 1999
Net sales $ 360.8 $ 372.4 $ 1,078.0 $ 1,108.5
Cost of Goods Sold 260.4 266.3 800.1 793.5
-------- -------- --------- --------
Gross Profit 100.4 106.1 277.9 315.0
Special charge, net -- -- (0.1) --
Selling &
Administrative
Expense 54.3 57.1 167.3 167.1
Gain on Sale
of Business -- -- 36.2 8.8
-------- -------- --------- --------
Total Operating
Income 46.1 49.0 146.8 156.7
Investment Income 4.4 3.8 11.9 10.6
Interest Expense (5.7) (4.6) (13.8) (12.3)
Other income, net (0.2) 0.2 3.6 5.3
-------- -------- --------- --------
Total Other
Income (Expense) (1.5) (0.6) 1.7 3.6
Income before
income taxes 44.6 48.4 148.5 160.3
Provision for
income taxes 11.6 12.6 38.6 41.7
-------- -------- --------- --------
Net income $ 33.0 $ 35.8 $ 109.9 $ 118.6
-------- -------- --------- --------
Earnings per
share -- basic $ 0.55 $ 0.55 $ 1.78 $ 1.82
Earnings per
share -- diluted $ 0.55 $ 0.54 $ 1.77 $ 1.79
Average number of shares
outstanding - basic 60,257 64,961 61,875 65,090
Average number of shares
outstanding - diluted 60,406 65,992 62,039 66,164
[Hubbell Incorporated home page] [Press Releases] [About Hubbell]