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ORANGE, Conn.--(BUSINESS WIRE)--April 19, 2001--Hubbell Incorporated (NYSE: HUBA, HUBB) today reported its results for the first quarter.
For the three months ended March 31, 2001, sales were $344.1 million versus $360.7 million reported for the corresponding period last year. Net income was $21.1 million and fully diluted earnings per share were $.36 as compared to $35.1 million and $.55, respectively, reported in 2000. The prior year's profit totals included gains on the sale of a surplus facility and an investment which contributed $.13 per share.
In commenting on its operating experience during the quarter, the Company cited a continuing decline in customer demand across many markets. The slowing which began in the second half of last year has progressively broadened reflecting the negative macroeconomic indicators for the national economy. Higher energy prices, forecasted declines in commercial construction and manufacturing contract awards, and a dramatic decline in capital spending by the automotive industry have steadily dampened demand. Exacerbating the impact have been on-going inventory reductions throughout distribution channels and among end-users as each contends with the slumping economy.
The company initiated contingency planning in mid-year 2000 to offset the slowdown by reducing labor and other costs by 10%. Nonetheless, with total volume declining by 8% for the Electrical and Power Systems segments, operating profit was reduced by a substantially higher rate. The Industrial Technology segment reported higher sales and operating profit for the period as the addition of GAI-Tronics to the group more than balanced the decline in the segment's operations that supply industrial customers.
While contending throughout the quarter with the negative economic environment, Hubbell's progress in raising internal profitability continued. On a year-over-year comparative basis both the Pulsecom unit and the commodity products operations within the base Electrical segment reported profits in the quarter versus losses last year even under the constraints of lower volume.
Certain statements contained herein may constitute forward-looking statements 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, Italy,
Switzerland, and the United Kingdom, participates in a joint venture
in Taiwan, and maintains sales offices in Singapore, Hong Kong, South
Korea, People's Republic of China, and the Middle East. The corporate
headquarters is located in Orange, CT.
HUBBELL INCORPORATED
CONSOLIDATED STATEMENT OF EARNINGS
(in millions, except per share data) unaudited
THREE MONTHS ENDED
MARCH 31
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2001 2000
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Net sales $ 344.1 $ 360.7
Cost of Goods Sold 257.6 257.5
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Gross Profit 86.5 103.2
Special charge, net - 0.2
Selling & Administrative Expense 56.6 58.6
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Total Operating Income 29.9 44.4
Investment Income 3.4 3.7
Interest Expense (5.3) (4.1)
Other income, net 0.2 3.4
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Total Other Income (Expense) (1.7) 3.0
Income before income taxes 28.2 47.4
Provision for income taxes 7.1 12.3
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Net income $ 21.1 $ 35.1
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Earnings per share - basic $0.36 $0.55
Earnings per share - diluted $0.36 $0.55
Average number of shares outstanding - basic 58,432 63,419
Average number of shares outstanding - diluted 58,766 63,611
HUBBELL INCORPORATED
CONSOLIDATED STATEMENT OF EARNINGS
(in millions, except per share data) unaudited
THREE MONTHS ENDED
MARCH 31
-------- --------
2001 2000
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Net Sales
Electrical $ 219.3 $ 242.9
Power 88.0 92.8
Industrial Technology 36.8 25.0
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Total Net Sales 344.1 360.7
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Operating Profit
Electrical 20.3 34.4
Special & Nonrecurring Charge, net - (1.6)
Power 7.7 8.4
Special & Nonrecurring Charge, net - 1.4
Industrial Technology 1.9 1.8
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Total Operating Profit 29.9 44.4
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Other income, net (1.7) 3.0
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Income before income taxes 28.2 47.4
Provision for income taxes 7.1 12.3
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Net income $ 21.1 $ 35.1
======== ========
Earnings per share - basic $0.36 $0.55
Earnings per share - diluted $0.36 $0.55
Average number of shares outstanding - basic 58,432 63,419
Average number of shares outstanding - diluted 58,766 63,611
Contact:
Hubbell Incorporated, Orange
Thomas R. Conlin, 203/799-4100