Hubbell Reports Second Quarter Results: Net Sales of $801.3 Million and Earnings Per Diluted Share of $1.37
(Thomson Reuters ONE) -
SHELTON, CT. (July 18, 2013) - Hubbell Incorporated (NYSE: HUBA, HUBB) today
reported operating results for the second quarter ended June 30, 2013.
Net sales in the second quarter of 2013 were $801.3 million, an increase of 3%
compared to the $778.4 million reported in the second quarter of 2012.
Operating income was $132.1 million, or 16.5% of net sales, compared to $124.5
million, or 16.0% of net sales, for the comparable period of 2012. Net income
in the second quarter of 2013 was $82.1 million versus $77.5 million reported in
the second quarter of 2012. Earnings per diluted share were $1.37 in the second
quarter of 2013 compared to $1.29 reported in the second quarter of 2012. Free
cash flow (defined as cash flow from operations less capital expenditures) was
$52.8 million in the second quarter of 2013 versus $49.9 million reported in the
comparable period of 2012.
For the first six months of 2013 net sales were $1.5 billion, an increase of 3%
compared to the same period last year. Operating income was $229.8 million, or
14.9% of net sales, compared to $226.2 million, or 15.1% of net sales, for the
comparable period of 2012. Net income in the first six months of 2013 was
$148.0 million, an increase of 5% compared to the $140.7 million reported in the
first six months of 2012. Earnings per diluted share were $2.47, or 6% above
the $2.34 reported for the comparable period of 2012. Free cash flow was $82.5
million compared to $83.6 million reported in the first six months of 2012.
OPERATIONS REVIEW
David G. Nord, President and Chief Executive Officer, said, "I am pleased with
our performance in the quarter which included both higher sales and operating
margin compared to 2012. The sales increase was due to the impact of
acquisitions while our base business was in line with last year's strong
results. From a profitability perspective, we were able to expand our operating
margin by fifty basis points despite incurring costs associated with facility
consolidations in our Power segment. I am also pleased to announce that we
completed the acquisition of Connector Manufacturing Company during the second
quarter. CMC manufactures high quality mechanical and compression connectors and
has been added to our Electrical segment."
Mr. Nord continued "The macroeconomic environment in the second quarter modestly
improved from the beginning of the year. U.S. non-residential activity
benefitted from higher levels of renovation projects, particularly for our
lighting businesses. North American electrical utility demand was below the
prior year which benefitted from unusually strong spending due to favorable
weather conditions and high levels of transmission project activity. Demand for
our industrial businesses was mixed while the residential markets remained
strong."
SEGMENT REVIEW
The comments and year-over-year percentages in this segment review are based on
second quarter results in 2013 and 2012.
Electrical segment net sales in the second quarter of 2013 increased 5% to
$564.5 million compared to $536.3 million reported in the second quarter of
2012. The increase was primarily due to acquisitions which contributed 3% to
sales in the quarter. Organic volume increased due to higher shipments of
lighting products partially offset by weaker industrial demand, most notably in
high voltage test equipment. Compared to the second quarter of 2012, operating
income increased 9% to $88.9 million, or 15.7% of net sales. The increase in
operating income was primarily due to the benefit of pricing and material costs
while productivity offset all other cost increases.
Hubbell's Power segment net sales in the second quarter of 2013 were $236.8
million compared to $242.1 million reported in the second quarter of 2012. The
decrease was primarily due to lower levels of project related transmission
spending and weaker distribution sales partially offset by the favorable impact
of an acquisition. Compared to the second quarter of 2012, operating income
declined slightly to $43.2 million. Operating margin in the second quarter of
2013 was 18.2% compared to 17.9% reported in the comparable period of 2012. The
increase in operating margin was primarily due to a favorable product mix
partially offset by facility consolidation costs.
SUMMARY & OUTLOOK
Mr. Nord commented, "Looking to our full year outlook for 2013, we expect
overall sales to increase in the 4 to 6% range and operating margin to expand
approximately 30 basis points. The sales outlook has increased slightly due to
the impact of our recent acquisition. From a profitability perspective, the
impact of our acquisition activity will slightly mute the level of operating
margin improvement."
Mr. Nord concluded, "The first half results were largely in line with
expectations and we now turn our attention to navigating through the second half
of the year where we will be focused on integrating our recent acquisitions and
driving margin improvement. Our financial position remains strong and we plan
to continue deploying our capital in value creating ways. I am encouraged that
the investments we have made in productivity programs and business development
have translated into increased profitability."
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 capital resources, performance and results of
operations and are based on the Company's reasonable current expectations. In
addition, all statements regarding anticipated growth or improvement in
operating results, anticipated market conditions, and economic recovery are
forward-looking. These statements may be identified by the use of forward-
looking words or phrases such as "improved", "leading", "improving", "continuing
growth", "continued", "ranging", "contributing", "primarily", "plan", "expect",
"anticipated", "expected", "expectations," "should result", "uncertain",
"goals", "projected", "on track", "likely", "intend" and others. 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: achieving sales levels
to fulfill revenue expectations; unexpected costs or charges, certain of which
may be outside the control of the Company; expected benefits of process
improvement and other lean initiatives; the expected benefit and effect of the
business information system initiatives and streamlining programs; the
availability and costs of raw materials and purchased components; realization of
price increases; the ability to achieve projected levels of efficiencies and
cost reduction measures; general economic and business conditions; competition;
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, 2012.
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 2012 revenues of $3.0
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
Hubbell Incorporated
40 Waterview Drive
P.O. Box 1000
Shelton, Connecticut 06484
(475) 882-4000
HUBBELL INCORPORATED
Condensed Consolidated Statement of Income
(unaudited)
(in millions, except per share amounts)
Three Months Ended Six Months Ended
June 30 June 30
----------------------- ---------------------------
+---------+ +---------+ +-----------+ +-----------+
| 2013 | | 2012 | | 2013 | | 2012 |
+---------+ +---------+ +-----------+ +-----------+
Net Sales $ 801.3 $ 778.4 $ 1,541.4 $ 1,502.2
Cost of goods sold 529.3 518.6 1,033.1 1,008.3
----------- ----------- ------------- -------------
Gross Profit 272.0 259.8 508.3 493.9
Selling & administrative
expenses 139.9 135.3 278.5 267.7
----------- ----------- ------------- -------------
Operating income 132.1 124.5 229.8 226.2
Operating income as a % of
Net sales 16.5% 16.0% 14.9% 15.1%
Interest expense, net (7.3) (7.1) (14.6) (14.3)
Other expense, net (2.0) (1.3) (1.2) (1.2)
----------- ----------- ------------- -------------
Total other expense, net (9.3) (8.4) (15.8) (15.5)
Income before income taxes 122.8 116.1 214.0 210.7
Provision for income taxes 39.8 38.1 64.2 69.1
----------- ----------- ------------- -------------
Net income $ 83.0 $ 78.0 $ 149.8 $ 141.6
Less: Net income attributable
to noncontrolling interest 0.9 0.5 1.8 0.9
----------- ----------- ------------- -------------
Net income attributable to
Hubbell $ 82.1 $ 77.5 $ 148.0 $ 140.7
----------- ----------- ------------- -------------
Earnings Per Share:
Basic $ 1.38 $ 1.31 $ 2.49 $ 2.37
Diluted $ 1.37 $ 1.29 $ 2.47 $ 2.34
Cash dividends per common
share $ 0.45 $ 0.41 $ 0.90 $ 0.82
HUBBELL INCORPORATED
Condensed Consolidated Balance Sheet
(unaudited)
(in millions)
June 30, 2013 December 31, 2012
--------------- ------------------
ASSETS
Cash and cash equivalents $ 586.6 $ 645.0
Short-term investments 7.0 8.8
Accounts receivable, net 468.8 405.2
Inventories, net 384.7 341.7
Deferred taxes and other 57.7 55.5
----------------- --------------------
TOTAL CURRENT ASSETS 1,504.8 1,456.2
Property, plant and equipment, net 370.0 364.7
Investments 39.5 36.7
Goodwill 794.5 755.5
Intangible assets, net 293.0 288.1
Other long-term assets 39.2 45.8
----------------- --------------------
TOTAL ASSETS $ 3,041.0 $ 2,947.0
----------------- --------------------
LIABILITIES AND EQUITY
Accounts payable $ 245.4 $ 213.1
Accrued salaries, wages and employee
benefits 55.0 75.4
Accrued insurance 44.0 39.6
Other accrued liabilities 108.0 119.3
----------------- --------------------
TOTAL CURRENT LIABILITIES 452.4 447.4
Long-term debt 596.9 596.7
Other non-current liabilities 248.2 235.0
----------------- --------------------
TOTAL LIABILITIES 1,297.5 1,279.1
Hubbell Shareholders' Equity 1,735.7 1,661.2
Noncontrolling interest 7.8 6.7
----------------- --------------------
TOTAL EQUITY 1,743.5 1,667.9
----------------- --------------------
TOTAL LIABILITIES AND EQUITY $ 3,041.0 $ 2,947.0
----------------- --------------------
HUBBELL INCORPORATED
Condensed Consolidated Statement of Cash Flows
(unaudited)
(in millions)
Six Months Ended June
30
------------------------
+----------+ +---------+
| 2013 | | 2012 |
+----------+ +---------+
Cash Flows From Operating Activities
Net income attributable to Hubbell $ 148.0 $ 140.7
Depreciation and amortization 34.4 33.0
Stock-based compensation expense 5.7 5.3
Deferred income taxes 7.8 6.8
Changes in working capital (90.2) (76.1)
Contributions to defined benefit pension plans (1.9) (6.3)
Other, net 4.7 1.2
------------ -----------
Net cash provided by operating activities 108.5 104.6
------------ -----------
Cash Flows From Investing Activities
Capital expenditures (26.0) (21.0)
Acquisition of businesses, net of cash acquired (81.7) (53.0)
Net change in investments (1.1) 2.1
Other, net 4.0 6.3
------------ -----------
Net cash used in investing activities (104.8) (65.6)
------------ -----------
Cash Flows From Financing Activities
Short-term debt repayments, net - (2.7)
Payment of dividends (53.3) (46.9)
Repurchase of common shares (6.5) (42.1)
Proceeds from exercise of stock options 1.1 19.8
Other, net 5.0 8.8
------------ -----------
Net cash used in financing activities (53.7) (63.1)
------------ -----------
Effect of foreign exchange rate changes on cash and cash
equivalents (8.4) (0.9)
------------ -----------
Decrease in cash and cash equivalents (58.4) (25.0)
Cash and cash equivalents
Beginning of period 645.0 569.6
------------ -----------
End of period $ 586.6 $ 544.6
------------ -----------
HUBBELL INCORPORATED
Segment Information
(unaudited)
(in millions)
Three Months Ended
June 30 Six Months Ended June 30
----------------------- ---------------------------
+---------+ +---------+ +-----------+ +-----------+
| 2013 | | 2012 | | 2013 | | 2012 |
+---------+ +---------+ +-----------+ +-----------+
Net Sales
Electrical $ 564.5 $ 536.3 $ 1,079.8 $ 1,041.4
Power 236.8 242.1 461.6 460.8
----------- ----------- ------------- -------------
Total Net Sales $ 801.3 $ 778.4 $ 1,541.4 $ 1,502.2
----------- ----------- ------------- -------------
Operating Income
Electrical $ 88.9 $ 81.2 $ 150.5 $ 145.0
Power 43.2 43.3 79.3 81.2
----------- ----------- ------------- -------------
Total Operating
Income $ 132.1 $ 124.5 $ 229.8 $ 226.2
----------- ----------- ------------- -------------
Operating Income as a % of Net Sales
Electrical 15.7% 15.1% 13.9% 13.9%
Power 18.2% 17.9% 17.2% 17.6%
Total 16.5% 16.0% 14.9% 15.1%
HUBBELL INCORPORATED
Earnings Per Share Calculation
(unaudited)
(in millions, except per share amounts)
Three Months Ended Six Months Ended
June 30 June 30
--------------------- --------------------
2013 2012 2013 2012
---------- ---------- ---------- ---------
Numerator:
Net income attributable to Hubbell $ 82.1 $ 77.5 $ 148.0 $ 140.7
Less: Earnings allocated to
participating securities 0.3 0.3 0.5 0.5
---------- ---------- ---------- ---------
Net income available to common
shareholders $ 81.8 $ 77.2 $ 147.5 $ 140.2
Denominator:
Average number of common shares
outstanding 59.1 59.1 59.1 59.2
Potential dilutive shares 0.5 0.6 0.5 0.6
---------- ---------- ---------- ---------
Average number of diluted shares
outstanding 59.6 59.7 59.6 59.8
---------- ---------- ---------- ---------
Earnings per Share:
Basic $ 1.38 $ 1.31 $ 2.49 $ 2.37
Diluted $ 1.37 $ 1.29 $ 2.47 $ 2.34
HUBBELL INCORPORATED
Non-GAAP Financial Measures
(unaudited)
(in millions)
Ratios of Total Debt to Total Capital and Net Debt to Total Capital
--------------------------------------------------------------------------------
June
30, 2013 December 31, 2012
------------- -----------------------------
Total Debt $ 596.9 $ 596.7
Total Hubbell's Shareholders'
Equity 1,735.7 1,661.2
------------- -----------------------------
Total Capital $ 2,332.6 $ 2,257.9
------------- -----------------------------
Total Debt to Total Capital 26% 26%
Total Debt $ 596.9 $ 596.7
Less: Cash and cash equivalents (586.6) (645.0)
Investments (46.5) (45.5)
------------- -----------------------------
Net Debt $ (36.2) $ (93.8)
------------- -----------------------------
Net Debt to Total Capital (2%) (4%)
Note: Management believes that net debt to capital is a useful measure
regarding Hubbell's financial leverage for evaluating the Company's ability to
meet its funding needs.
Free Cash Flow Reconciliation
--------------------------------------------------------------------------------
Six Months Ended June 30
-------------------------------------------
2013 2012
------------- -----------------------------
Net cash provided by operating
activities $ 108.5 $ 104.6
Less: Capital Expenditures (26.0) (21.0)
------------- -----------------------------
Free cash flow $ 82.5 $ 83.6
------------- -----------------------------
Note: Management believes that free cash flow provides useful information
regarding Hubbell's ability to generate cash without reliance on external
financings. In addition, management uses free cash flow to evaluate the
resources available for investments in the business, strategic acquisitions
and further strengthening the balance sheet.
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other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Hubbell Inc. via Thomson Reuters ONE
[HUG#1717245]
Unternehmensinformation / Kurzprofil:
Datum: 18.07.2013 - 13:20 Uhr
Sprache: Deutsch
News-ID 279756
Anzahl Zeichen: 28377
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Kategorie:
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