Hubbell Reports Third Quarter Results: Net Sales of $835.9 Million and Earnings Per Diluted Share of $1.62
(Thomson Reuters ONE) -
SHELTON, CT. (October 17, 2013) - Hubbell Incorporated (NYSE: HUBA, HUBB)
today reported operating results for the third quarter ended September
30, 2013.
Net sales in the third quarter of 2013 were $835.9 million, an increase of 6%
compared to the $789.7 million reported in the third quarter of 2012. Operating
income was $151.6 million, or 18.1% of net sales, compared to $135.1 million, or
17.1% of net sales, for the comparable period of 2012. Net income in the third
quarter of 2013 was $96.5 million versus $87.1 million reported in the third
quarter of 2012. Earnings per diluted share were $1.62 in the third quarter of
2013 compared to $1.45 reported in the third quarter of 2012. Free cash flow
(defined as cash flow from operations less capital expenditures) was $103.0
million in the third quarter of 2013 versus $77.1 million reported in the
comparable period of 2012.
For the first nine months of 2013 net sales were $2.4 billion, an increase of
4% compared to the same period last year. Operating income was $381.4 million,
or 16.0% of net sales, compared to $361.3 million, or 15.8% of net sales, for
the comparable period of 2012. Net income in the first nine months of 2013 was
$244.5 million, an increase of 7% compared to the $227.8 million reported in the
first nine months of 2012. Earnings per diluted share were $4.09, or 8% above
the $3.80 reported for the comparable period of 2012. Free cash flow was $185.5
million compared to $160.7 million reported in the first nine months of 2012.
OPERATIONS REVIEW
David G. Nord, President and Chief Executive Officer, said, "We reported
another quarter of strong performance with higher sales and operating margin
compared to 2012. The sales increase was largely due to the impact of
acquisitions as well as strength in several areas of the Electrical segment.
From a profitability perspective, we were able to increase earnings per diluted
share by 12% and I am proud of the organization's ability to deliver these
results with little help from our markets. I would also like to report that the
two recent acquisitions that we announced on our July earnings call are
integrating very smoothly into the Hubbell family."
Mr. Nord continued "The demand in our end markets during the third quarter was
mixed. In the construction markets, U.S. non-residential activity increased due
to renovation and relight activities while the residential market continued to
expand at a double-digit pace. North American electrical utility demand was
below the prior year as utility companies continue to face regulatory issues,
weak electricity usage and few rate increases. Our businesses that serve the
industrial markets were higher primarily due to the strength of the extractive
industry sector."
SEGMENT REVIEW
The comments and year-over-year percentages in this segment review are based on
third quarter results in 2013 and 2012.
Electrical segment net sales in the third quarter of 2013 increased 8% to
$597.6 million compared to $551.8 million reported in the third quarter of
2012. The increase was primarily due to acquisitions which contributed 5% to
sales in the quarter. The organic volume increase was led by higher shipments
of lighting products. Compared to the third quarter of 2012, operating income
increased 15% to $104.5 million, or 17.5% of net sales. The increase in
operating income was primarily due to the benefit of higher volume and lower
material costs.
Hubbell's Power segment net sales in the third quarter of 2013 were $238.3
million compared to $237.9 million reported in the third quarter of 2012. The
sales were impacted by weaker overall utility demand and unfavorable foreign
currency translation offset by the favorable impact of an acquisition. Compared
to the third quarter of 2012, operating income increased to $47.1 million.
Operating margin in the third quarter of 2013 was 19.8% compared to 18.7%
reported in the comparable period of 2012. The increase in operating margin was
primarily due to productivity and a favorable product mix.
SUMMARY & OUTLOOK
Mr. Nord commented, "Looking to the remainder of 2013, we remain highly focused
and committed to achieving our financial goals for the year. For the full year
2013, we expect net sales to increase by approximately 5% and operating margins
to expand by approximately 40 basis points."
Mr. Nord concluded, "Turning to 2014, third party forecasts for our markets
point towards growth in the upcoming year. That growth is expected to be led by
the construction markets, which account for approximately fifty percent of our
overall sales. We would also expect modest growth in our industrial markets
while utility spending is likely to remain challenging given the level of
uncertainty that persists in that market. So overall we currently believe the
end market growth to be in the two to four percent range for 2014. From a
profitability perspective, we continue to plan for expanding our operating
margins into the future. The organization remains highly engaged in driving
productivity programs. This will continue to be a critical element of improving
operating margins as the price and material benefits experienced in 2013 are not
likely to continue. However, given the level of near term volatility, we expect
to provide a more detailed outlook on our next scheduled conference call in
January."
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 Nine Months Ended
September 30 September 30
----------------------- ---------------------------
+---------+ +---------+ +-----------+ +-----------+
| 2013 | | 2012 | | 2013 | | 2012 |
+---------+ +---------+ +-----------+ +-----------+
Net sales $ 835.9 $ 789.7 $ 2,377.3 $ 2,291.9
Cost of goods sold 544.6 521.2 1,577.7 1,529.5
----------- ----------- ------------- -------------
Gross profit 291.3 268.5 799.6 762.4
Selling & administrative
expenses 139.7 133.4 418.2 401.1
----------- ----------- ------------- -------------
Operating income 151.6 135.1 381.4 361.3
Operating income as a % of
Net sales 18.1% 17.1% 16.0% 15.8%
Interest expense, net (7.4) (7.2) (22.0) (21.5)
Other (expense) income, net (0.9) 1.1 (2.1) (0.1)
----------- ----------- ------------- -------------
Total other expense, net (8.3) (6.1) (24.1) (21.6)
Income before income taxes 143.3 129.0 357.3 339.7
Provision for income taxes 46.1 41.4 110.3 110.5
----------- ----------- ------------- -------------
Net income 97.2 87.6 247.0 229.2
Less: Net income
attributable to
noncontrolling interest 0.7 0.5 2.5 1.4
----------- ----------- ------------- -------------
Net income attributable to
Hubbell $ 96.5 $ 87.1 $ 244.5 $ 227.8
----------- ----------- ------------- -------------
Earnings Per Share:
Basic $ 1.63 $ 1.47 $ 4.12 $ 3.84
Diluted $ 1.62 $ 1.45 $ 4.09 $ 3.80
Cash dividends per common
share $ 0.45 $ 0.41 $ 1.35 $ 1.23
HUBBELL INCORPORATED
Condensed Consolidated Balance Sheet
(unaudited)
(in millions)
September 30, 2013 December 31, 2012
-------------------- ------------------
ASSETS
Cash and cash equivalents $ 630.4 $ 645.0
Short-term investments 10.5 8.8
Accounts receivable, net 499.5 405.2
Inventories, net 401.9 341.7
Deferred taxes and other 54.0 55.5
---------------------- --------------------
TOTAL CURRENT ASSETS 1,596.3 1,456.2
Property, plant and equipment, net 370.3 364.7
Investments 35.7 36.7
Goodwill 805.2 755.5
Intangible assets, net 292.8 288.1
Other long-term assets 40.9 45.8
---------------------- --------------------
TOTAL ASSETS $ 3,141.2 $ 2,947.0
---------------------- --------------------
LIABILITIES AND EQUITY
Short-term debt $ 0.1 $ -
Accounts payable 235.2 213.1
Accrued salaries, wages and
employee benefits 68.8 75.4
Accrued insurance 46.0 39.6
Other accrued liabilities 134.5 119.3
---------------------- --------------------
TOTAL CURRENT LIABILITIES 484.6 447.4
Long-term debt 597.1 596.7
Other non-current liabilities 255.6 235.0
---------------------- --------------------
TOTAL LIABILITIES 1,337.3 1,279.1
Hubbell Shareholders' Equity 1,795.8 1,661.2
Noncontrolling interest 8.1 6.7
---------------------- --------------------
TOTAL EQUITY 1,803.9 1,667.9
---------------------- --------------------
TOTAL LIABILITIES AND EQUITY $ 3,141.2 $ 2,947.0
---------------------- --------------------
HUBBELL INCORPORATED
Condensed Consolidated Statement of Cash Flows
(unaudited)
(in millions)
Nine Months Ended
September 30
------------------------
+----------+ +---------+
| 2013 | | 2012 |
+----------+ +---------+
Cash Flows From Operating Activities
Net income attributable to Hubbell $ 244.5 $ 227.8
Depreciation and amortization 52.5 49.2
Stock-based compensation expense 8.4 8.0
Deferred income taxes 14.7 16.0
Changes in working capital (106.1) (98.0)
Contributions to defined benefit pension plans (2.5) (22.0)
Other, net 14.4 11.0
------------ -----------
Net cash provided by operating activities 225.9 192.0
------------ -----------
Cash Flows From Investing Activities
Capital expenditures (40.4) (31.3)
Acquisition of businesses, net of cash acquired (96.5) (53.0)
Net change in investments (0.8) 8.7
Other, net 4.4 13.7
------------ -----------
Net cash used in investing activities (133.3) (61.9)
------------ -----------
Cash Flows From Financing Activities
Short-term debt borrowings (repayments) 0.1 (2.7)
Payment of dividends (79.9) (71.3)
Repurchase of common shares (31.0) (55.6)
Proceeds from exercise of stock options 1.5 21.4
Other, net 5.4 10.7
------------ -----------
Net cash used in financing activities (103.9) (97.5)
------------ -----------
Effect of foreign exchange rate changes on cash and
cash equivalents (3.3) 3.4
------------ -----------
(Decrease) increase in cash and cash equivalents (14.6) 36.0
Cash and cash equivalents
Beginning of period 645.0 569.6
------------ -----------
End of period $ 630.4 $ 605.6
------------ -----------
HUBBELL INCORPORATED
Segment Information
(unaudited)
(in millions)
Three Months Ended Nine Months Ended
September 30 September 30
------------------------- ---------------------------
+---------+ +-----------+ +-----------+ +-----------+
| 2013 | | 2012 | | 2013 | | 2012 |
+---------+ +-----------+ +-----------+ +-----------+
Net Sales
Electrical $ 597.6 $ 551.8 $ 1,677.4 $ 1,593.2
Power 238.3 237.9 699.9 698.7
----------- ------------- ------------- -------------
Total Net
Sales $ 835.9 $ 789.7 $ 2,377.3 $ 2,291.9
----------- ------------- ------------- -------------
Operating Income
Electrical $ 104.5 $ 90.7 $ 255.0 $ 235.7
Power 47.1 44.4 126.4 125.6
----------- ------------- ------------- -------------
Total
Operating Income $ 151.6 $ 135.1 $ 381.4 $ 361.3
----------- ------------- ------------- -------------
Operating Income as a % of Net Sales
Electrical 17.5% 16.4% 15.2% 14.8%
Power 19.8% 18.7% 18.1% 18.0%
Total 18.1% 17.1% 16.0% 15.8%
HUBBELL INCORPORATED
Earnings Per Share Calculation
(unaudited)
(in millions, except per share amounts)
Three Months Ended Nine Months Ended
September 30 September 30
--------------------- --------------------
2013 2012 2013 2012
---------- ---------- ---------- ---------
Numerator:
Net income attributable to Hubbell $ 96.5 $ 87.1 $ 244.5 $ 227.8
Less: Earnings allocated to
participating securities 0.3 0.3 0.8 0.8
---------- ---------- ---------- ---------
Net income available to common
shareholders $ 96.2 $ 86.8 $ 243.7 $ 227.0
Denominator:
Average number of common shares
outstanding 59.1 59.1 59.1 59.2
Potential dilutive shares 0.4 0.6 0.4 0.6
---------- ---------- ---------- ---------
Average number of diluted shares
outstanding 59.5 59.7 59.5 59.8
---------- ---------- ---------- ---------
Earnings per Share:
Basic $ 1.63 $ 1.47 $ 4.12 $ 3.84
Diluted $ 1.62 $ 1.45 $ 4.09 $ 3.80
HUBBELL INCORPORATED
Non-GAAP Financial Measures
(unaudited)
(in millions)
Ratios of Total Debt to Total Capital and Net Debt to Total Capital
-------------------------------------------------------------------------------
September
30, 2013 December 31, 2012
------------------ -------------------------
Total Debt $ 597.2 $ 596.7
Total Hubbell's Shareholders'
Equity 1,795.8 1,661.2
------------------ -------------------------
Total Capital $ 2,393.0 $ 2,257.9
------------------ -------------------------
Total Debt to Total Capital 25% 26%
Total Debt $ 597.2 $ 596.7
Less: Cash and cash equivalents (630.4) (645.0)
Investments (46.2) (45.5)
------------------ -------------------------
Net Debt $ (79.4) $ (93.8)
------------------ -------------------------
Net Debt to Total Capital (3%) (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
-------------------------------------------------------------------------------
Nine Months Ended September 30
--------------------------------------------
2013 2012
------------------ -------------------------
Net cash provided by operating
activities $ 225.9 $ 192.0
Less: Capital Expenditures (40.4) (31.3)
------------------ -------------------------
Free cash flow $ 185.5 $ 160.7
------------------ -------------------------
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.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
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#1736256]
Unternehmensinformation / Kurzprofil:
Datum: 17.10.2013 - 13:15 Uhr
Sprache: Deutsch
News-ID 306821
Anzahl Zeichen: 28664
contact information:
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Kategorie:
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