Hubbell Reports First Quarter Results: Net Sales of $809.7 Million and Earnings Per Diluted Share of $1.07, Including $0.05 of Restructuring and Related Costs
(Thomson Reuters ONE) -
* Net sales up 7% (4% organic, 4% acquisitions, -1% FX)
* Diluted EPS up 4%, excluding restructuring and related costs ((1))
* Acquisition investment of $126 million; share repurchases of $76 million
SHELTON, CT. (April 23, 2015) - Hubbell Incorporated (NYSE: HUBA, HUBB) today
reported operating results for the first quarter ended March 31, 2015.
Net sales in the first quarter of 2015 were $809.7 million, an increase of 7%
compared to the $759.5 million reported in the first quarter of 2014. Operating
income in the quarter was $105.0 million and flat compared to the same period in
2014. Excluding $4.4 million of restructuring and related costs, operating
income increased 4% ((1)). Net income in the first quarter of 2015 was $62.4
million compared to $64.2 million reported in the comparable period of 2014.
Earnings per diluted share for the first quarter of 2015 were $1.07, compared to
$1.08 reported in the first quarter of 2014. Excluding restructuring and related
costs, earnings per diluted share increased 4% to $1.12 ((1)). Free cash flow
(defined as cash flow from operations less capital expenditures) was $9.5
million in the first quarter of 2015 versus $30.7 million reported in the
comparable period of 2014.
OPERATIONS REVIEW
David G. Nord, Chairman, President and Chief Executive Officer, said, "Hubbell
had a solid start to the year, with a 7% sales increase driven by a balance of
organic and acquisition growth. End markets performed largely as expected, as
notable strength in non-residential was partially offset by ongoing weakness in
energy-related industries." Mr. Nord continued, "We are progressing nicely with
our cost reduction efforts, which include rationalizing facilities, reducing
personnel cost, and streamlining back-office processes. We are focused on
continuing to identify and execute opportunities to improve our cost structure
and position the Company over the long-term for strong conversion on top line
growth.
"Turning to capital deployment, we previously announced the closing of three
acquisitions in January totaling $126 million. I am pleased to report that the
integration of these businesses into the Hubbell family is progressing smoothly
and we continue to see an attractive acquisition pipeline that we believe will
support our future growth," Mr. Nord added. "We also returned $109 million to
shareholders during the quarter through share repurchases and dividends.
Combined with our fourth quarter activity, we have utilized approximately half
of the $300 million share repurchase program authorized by our Board of
Directors in October of 2014."
SEGMENT REVIEW
The comments and year-over-year comparisons in this segment review are based on
first quarter results in 2015 and 2014.
Electrical segment net sales in the first quarter of 2015 increased 6% to $569.7
million compared to $538.8 million reported in the first quarter of 2014.
Acquisitions added 4% to net sales in the quarter while the unfavorable impact
of foreign currency translation reduced sales by 2%. Organic volume increased
4% due to strength in businesses that support the non-residential construction
market partially offset by lower shipments in oil and gas related businesses.
Operating income was $63.4 million, or 11.1% of net sales. Excluding
restructuring and related costs, operating income decreased 2% and margin
declined by 90 basis points, primarily due to product and business mix headwinds
as well as the unfavorable net impact of pricing, cost increases and
productivity((1)).
Hubbell's Power segment net sales in the first quarter of 2015 increased 9% to
$240.0 million compared to $220.7 million reported in the first quarter of
2014. Acquisitions added 5% to net sales in the quarter while foreign currency
translation was slightly unfavorable. Organic sales increased 4% due to
increased shipments of distribution products. Compared to the first quarter of
2014, operating income increased 13% to $41.6 million, or 70 basis points to
17.3% of net sales. Excluding restructuring and related costs, operating income
increased 17% and margin expanded 120 basis points ((1)). Both increases were
primarily due to higher volume.
SUMMARY & OUTLOOK
Mr. Nord commented, "We intend to continue the strong operating performance of
the first quarter through the balance of the year. We expect end market strength
from non-residential and residential construction markets, modest increases from
utility markets, and mixed results from industrial markets. Hubbell's quality
brands are well positioned to outperform these markets and, when complemented by
mid-single digit growth in acquisitions, we believe our net sales will grow 5%
to 7% in 2015." Mr. Nord continued, "We anticipate this mix shift, as well as
the stronger dollar, will impact our operating margins in 2015, but we still
expect earnings per diluted share to be in the range of $5.35 to $5.55,
inclusive of approximately $0.25 of restructuring and related costs. Our
restructuring initiatives are expected to provide increased productivity to help
drive next year's earnings.
"We intend to continue to invest in acquisitions and return capital to our
shareowners through dividends and share repurchases," Mr. Nord added. "I am
excited about Hubbell's ability to manage the levers required to create
shareholder value in the years to come."
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 expectations regarding our financial results,
completed and future acquisitions, restructuring actions, progress in our
Lighting business, market conditions, and other statements that are not strictly
historic in nature. 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 are based on the Company's reasonable current
expectations and 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, 2014.
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 2014 revenues of $3.4
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: Maria R. Lee
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
March 31,
----------------------
2015 2014
----------- ----------
Net sales $ 809.7 $ 759.5
Cost of goods sold 557.0 514.5
----------- ----------
Gross profit 252.7 245.0
Selling & administrative expenses 147.7 140.2
----------- ----------
Operating income 105.0 104.8
Operating income as a % of Net sales 13.0 % 13.8 %
Interest expense, net (7.7 ) (7.5 )
Other income (expense), net (2.6 ) (1.2 )
----------- ----------
Total other expense, net (10.3 ) (8.7 )
Income before income taxes 94.7 96.1
Provision for income taxes 31.3 30.8
----------- ----------
Net income 63.4 65.3
Less: Net income attributable to noncontrolling interest 1.0 1.1
----------- ----------
Net income attributable to Hubbell $ 62.4 $ 64.2
----------- ----------
Earnings Per Share:
Basic $ 1.07 $ 1.08
Diluted $ 1.07 $ 1.08
Cash dividends per common share $ 0.56 $ 0.50
HUBBELL INCORPORATED
Condensed Consolidated Balance Sheet
(unaudited)
(in millions)
March December
31, 2015 31, 2014
------------- --------------
ASSETS
Cash and cash equivalents $ 413.3 $ 653.9
Short-term investments 9.6 7.8
Accounts receivable, net 501.7 469.8
Inventories, net 485.5 441.8
Deferred taxes and other 60.4 56.1
------------- --------------
TOTAL CURRENT ASSETS 1,470.5 1,629.4
Property, plant and equipment, net 402.4 401.2
Investments 45.5 44.1
Goodwill 916.5 874.7
Intangible assets, net 370.7 322.8
Other long-term assets 50.1 50.6
------------- --------------
TOTAL ASSETS $ 3,255.7 $ 3,322.8
------------- --------------
LIABILITIES AND EQUITY
Short-term debt $ - $ 1.4
Accounts payable 259.6 244.0
Accrued salaries, wages and employee benefits 57.0 76.0
Accrued insurance 54.6 47.8
Other accrued liabilities 142.9 130.0
------------- --------------
TOTAL CURRENT LIABILITIES 514.1 499.2
Long-term debt 597.7 597.6
Other non-current liabilities 272.7 290.3
------------- --------------
TOTAL LIABILITIES 1,384.5 1,387.1
Hubbell Shareholders' Equity 1,862.2 1,927.1
Noncontrolling interest 9.0 8.6
------------- --------------
TOTAL EQUITY 1,871.2 1,935.7
------------- --------------
TOTAL LIABILITIES AND EQUITY $ 3,255.7 $ 3,322.8
------------- --------------
HUBBELL INCORPORATED
Condensed Consolidated Statement of Cash Flows
(unaudited)
(in millions)
Three Months Ended
March 31,
----------------------
2015 2014
----------- ----------
Cash Flows From Operating Activities
Net income attributable to Hubbell $ 62.4 $ 64.2
Depreciation and amortization 21.7 18.9
Stock-based compensation expense 3.9 3.4
Deferred income taxes (0.1 ) 6.0
Changes in working capital (43.1 ) (47.6 )
Contributions to defined benefit pension plans (20.6 ) (1.0 )
Other, net 1.6 (0.5 )
----------- ----------
Net cash provided by operating activities 25.8 43.4
----------- ----------
Cash Flows From Investing Activities
Capital expenditures (16.3 ) (12.7 )
Acquisition of businesses, net of cash acquired (126.8 ) (90.9 )
Net change in investments (2.8 ) 0.6
Other, net 1.2 -
----------- ----------
Net cash used in investing activities (144.7 ) (103.0 )
----------- ----------
Cash Flows From Financing Activities
Short-term debt borrowings, net (1.4 ) 0.6
Payment of dividends (32.5 ) (29.6 )
Repurchase of common shares (76.0 ) (11.5 )
Proceeds from exercise of stock options - 0.5
Other, net 0.7 4.4
----------- ----------
Net cash used in financing activities (109.2 ) (35.6 )
----------- ----------
Effect of foreign exchange rate changes on cash and cash
equivalents (12.5 ) 1.8
----------- ----------
(Decrease) increase in cash and cash equivalents (240.6 ) (93.4 )
Cash and cash equivalents
Beginning of period 653.9 740.7
----------- ----------
End of period $ 413.3 $ 647.3
----------- ----------
HUBBELL INCORPORATED
Restructuring and Related Costs Included in Consolidated Results
(unaudited)
(in millions)
Three Months Ended March
31, 2015
------------------------------
Restructuring and related costs included in Cost
of goods sold ((2))
Electrical $ 2.8
Power 1.1
------------------------------
Total $ 3.9
------------------------------
Restructuring and related costs included in
Selling & administrative expenses( (3))
Electrical $ 0.4
Power 0.1
------------------------------
Total $ 0.5
------------------------------
Impact on income before income taxes $ 4.4
Impact on Net income available to Hubbell common
shareholders $ 3.0
------------------------------
Impact of Diluted earnings per share $ 0.05
------------------------------
The Company incurred no restructuring and related costs in the three months
ended March 31, 2014.
HUBBELL INCORPORATED
Earnings Per Share Calculation
(unaudited)
(in millions, except per share amounts)
Three Months Ended
March 31,
---------------------------
2015 2014 Change
---------- ----------------
Numerator:
Net income attributable to Hubbell $ 62.4 $ 64.2
Less: Earnings allocated to participating
securities 0.2 0.2
---------- ----------------
Net income available to common shareholders (GAAP
measure) [a] $ 62.2 $ 64.0 (3 )%
Less: Restructuring and related costs, after tax 3.0 -
---------- ----------------
Net income avail. to common shareholders excl.
restructuring and related costs( (1)) [b] $ 65.2 $ 64.0 2 %
Denominator:
Average number of common shares outstanding [c] 58.0 59.0
Potential dilutive shares 0.3 0.5
---------- ----------------
Average number of diluted shares outstanding [d] 58.3 59.5
---------- ----------------
Earnings per share (GAAP measure):
Basic [a] / [c] $ 1.07 $ 1.08
Diluted [a] / [d] $ 1.07 $ 1.08 (1 )%
Earnings per diluted share excluding restructuring
and related costs( (1)) [b] / [d] 1.12 1.08 4 %
HUBBELL INCORPORATED
Segment Information
(unaudited)
(in millions)
Hubbell Incorporated Three Months Ended March 31,
-------------------------------
2015 2014 Change
----------- -------------------
Net Sales [a] $ 809.7 $ 759.5 7 %
Operating Income
GAAP measure [b] $ 105.0 $ 104.8 - %
Restructuring and related costs 4.4 -
----------- -------------------
Operating Income excluding restructuring and
related costs( (1)) [c] $ 109.4 $ 104.8 4 %
----------- -------------------
Operating margin
GAAP measure [b] / [a] -80
13.0 % 13.8 % bps
Operating margin excluding restructuring and -30
related costs( (1)) [c] / [a] 13.5 % 13.8 % bps
Electrical segment Three Months Ended March 31,
-------------------------------
2015 2014 Change
----------- -------------------
Net Sales [a] $ 569.7 $ 538.8 6 %
Operating Income
GAAP measure [b] $ 63.4 $ 68.1 (7 )%
Restructuring and related costs 3.2 -
----------- -------------------
Operating Income excluding restructuring and
related costs( (1)) [c] $ 66.6 $ 68.1 (2 )%
----------- -------------------
Operating margin
GAAP measure [b] / [a] -150
11.1 % 12.6 % bps
Operating margin excluding restructuring and -90
related costs( (1)) [c] / [a] 11.7 % 12.6 % bps
Power segment Three Months Ended March 31,
-------------------------------
2015 2014 Change
----------- -------------------
Net Sales [a] $ 240.0 $ 220.7 9 %
Operating Income
GAAP measure [b] $ 41.6 $ 36.7 13 %
Restructuring and related costs 1.2 -
----------- -------------------
Operating Income excluding restructuring and
related costs( (1)) [c] $ 42.8 $ 36.7 17 %
----------- -------------------
Operating margin
GAAP measure [b] / [a] +70
17.3 % 16.6 % bps
Operating margin excluding restructuring and +120
related cost( (1)) [c] / [a] 17.8 % 16.6 % bps
HUBBELL INCORPORATED
Debt to Capital and Free Cash Flow
(unaudited)
(in millions)
Ratios of Total Debt to Total Capital and Net Debt to Total Capital
March 31, 2015 December 31, 2014
------------------- --------------------
Total Debt $ 597.7 $ 599.0
Total Hubbell Shareholders' Equity 1,862.2 1,927.1
------------------- --------------------
Total Capital $ 2,459.9 $ 2,526.1
------------------- --------------------
Total Debt to Total Capital 24 % 24 %
Total Debt $ 597.7 $ 599.0
Less: Cash and cash equivalents (413.3 ) (653.9 )
Investments (55.1 ) (51.9 )
------------------- --------------------
Net Debt $ 129.3 $ (106.8 )
------------------- --------------------
Net Debt to Total Capital ((4)) 5 % (4 )%
Free Cash Flow Reconciliation
Three Months Ended
----------------------------------
2015 2014
---------------- ---------------
Net cash provided by operating activities $ 25.8 $ 43.4
Less: Capital expenditures (16.3 ) (12.7 )
---------------- ---------------
Free cash flow( (5)) $ 9.5 $ 30.7
---------------- ---------------
HUBBELL INCORPORATED
Footnotes
((1) )In order to provide a comparison that we believe provides more useful
information regarding our underlying performance from period to period and to
allow readers to assess the impact of restructuring activities and business
transformation initiatives on our results of operations, the Company refers to
earnings per diluted share, net income available to Hubbell common shareholders,
and operating income, each excluding restructuring and related costs.
Restructuring costs support our cost reduction efforts involving the
consolidation of manufacturing and distribution facilities and workforce
reductions. Restructuring related costs are one-time costs associated with our
business transformation initiatives, including the consolidation of back-office
functions and streamlining our processes. Each of these measures that exclude
restructuring and related costs are non-GAAP measures. Reconciliations of these
non-GAAP measures to the most directly comparable GAAP measure can be found in
the Earnings Per Share Calculation and Segment Information tables within this
press release.
((2)) Restructuring and related costs is a non-GAAP measure that we believe is
useful to assess the impact of restructuring activities and business
transformation initiatives on our operating results. Restructuring costs are
incurred to support our cost reduction efforts involving the consolidation of
manufacturing and distribution facilities and workforce reductions.
Restructuring related costs are one-time costs associated with our business
transformation initiatives, including the consolidation of back-office functions
and streamlining our processes. Restructuring and related costs includes
restructuring costs of $1.9 million in the Electrical segment and $0.7 million
in the Power segment.
((3)) Includes restructuring costs of $0.1 million in the Electrical segment.
((4)) Net debt to total capital is a non-GAAP measure that management believes
is a useful measure regarding Hubbell's financial leverage for evaluating the
Company's ability to meet its funding needs.
((5) )Free cash flow is a non-GAAP measure that management believes 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 GlobeNewswire on behalf of
GlobeNewswire 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 GlobeNewswire
[HUG#1913781]
Unternehmensinformation / Kurzprofil:
Datum: 23.04.2015 - 13:31 Uhr
Sprache: Deutsch
News-ID 388098
Anzahl Zeichen: 34161
contact information:
Town:
Shelton
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 176 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Hubbell Reports First Quarter Results: Net Sales of $809.7 Million and Earnings Per Diluted Share of $1.07, Including $0.05 of Restructuring and Related Costs"
steht unter der journalistisch-redaktionellen Verantwortung von
Hubbell Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
