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þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
State of Connecticut | 06-0397030 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
40 Waterview Drive, Shelton, CT | 06484 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | |||
(Do not check if a smaller reporting company) |
Page | ||||||||
Part I—Financial Information
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Exhibit 31.1 | ||||||||
Exhibit 31.2 | ||||||||
Exhibit 32.1 | ||||||||
Exhibit 32.2 | ||||||||
EX-101 INSTANCE DOCUMENT | ||||||||
EX-101 SCHEMA DOCUMENT | ||||||||
EX-101 CALCULATION LINKBASE DOCUMENT | ||||||||
EX-101 LABELS LINKBASE DOCUMENT | ||||||||
EX-101 PRESENTATION LINKBASE DOCUMENT | ||||||||
EX-101 DEFINITION LINKBASE DOCUMENT |
ITEM 1. |
FINANCIAL STATEMENTS
|
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net Sales
|
$ | 646.4 | $ | 584.2 | $ | 1,216.9 | $ | 1,169.8 | ||||||||
Cost of goods sold
|
435.4 | 410.0 | 830.2 | 828.6 | ||||||||||||
|
||||||||||||||||
Gross Profit
|
211.0 | 174.2 | 386.7 | 341.2 | ||||||||||||
Selling & administrative expenses
|
117.5 | 107.6 | 227.5 | 217.3 | ||||||||||||
|
||||||||||||||||
Operating income
|
93.5 | 66.6 | 159.2 | 123.9 | ||||||||||||
|
||||||||||||||||
Interest expense, net
|
(7.5 | ) | (7.6 | ) | (15.1 | ) | (15.3 | ) | ||||||||
Other (expense) income, net
|
(0.5 | ) | (1.2 | ) | (1.0 | ) | (1.0 | ) | ||||||||
|
||||||||||||||||
Total other expense, net
|
(8.0 | ) | (8.8 | ) | (16.1 | ) | (16.3 | ) | ||||||||
Income before income taxes
|
85.5 | 57.8 | 143.1 | 107.6 | ||||||||||||
Provision for income taxes
|
27.6 | 18.2 | 46.2 | 33.9 | ||||||||||||
|
||||||||||||||||
Net income
|
57.9 | 39.6 | 96.9 | 73.7 | ||||||||||||
Less: Net income attributable to
noncontrolling interest
|
0.3 | 0.2 | 0.7 | 0.5 | ||||||||||||
|
||||||||||||||||
Net income attributable to Hubbell
|
$ | 57.6 | $ | 39.4 | $ | 96.2 | $ | 73.2 | ||||||||
|
||||||||||||||||
Earnings per share
|
||||||||||||||||
Basic
|
$ | 0.96 | $ | 0.70 | $ | 1.60 | $ | 1.30 | ||||||||
Diluted
|
$ | 0.95 | $ | 0.70 | $ | 1.59 | $ | 1.30 | ||||||||
Cash dividends per common share
|
$ | 0.36 | $ | 0.35 | $ | 0.72 | $ | 0.70 |
3
June 30, 2010 | December 31, 2009 | |||||||
|
||||||||
ASSETS
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$ | 287.8 | $ | 258.5 | ||||
Short-term investments
|
2.4 | 2.6 | ||||||
Accounts receivable, net
|
371.7 | 310.1 | ||||||
Inventories, net
|
276.5 | 263.5 | ||||||
Deferred taxes and other
|
86.1 | 85.8 | ||||||
|
||||||||
Total current assets
|
1,024.5 | 920.5 | ||||||
Property, Plant, and Equipment, net
|
361.5 | 368.8 | ||||||
Other Assets
|
||||||||
Investments
|
35.7 | 25.5 | ||||||
Goodwill
|
740.6 | 743.7 | ||||||
Intangible assets and other
|
396.8 | 406.0 | ||||||
|
||||||||
Total Assets
|
$ | 2,559.1 | $ | 2,464.5 | ||||
|
||||||||
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
Current Liabilities
|
||||||||
Short-term debt
|
$ | 3.4 | $ | — | ||||
Accounts payable
|
168.8 | 130.8 | ||||||
Accrued salaries, wages and employee benefits
|
55.7 | 62.8 | ||||||
Accrued insurance
|
53.3 | 49.3 | ||||||
Dividends payable
|
21.6 | 20.9 | ||||||
Other accrued liabilities
|
143.0 | 154.7 | ||||||
|
||||||||
Total current liabilities
|
445.8 | 418.5 | ||||||
Long-Term Debt
|
500.6 | 497.2 | ||||||
Other Non-Current Liabilities
|
248.1 | 246.8 | ||||||
|
||||||||
Total Liabilities
|
1,194.5 | 1,162.5 | ||||||
Hubbell Shareholders’ Equity
|
1,360.6 | 1,298.2 | ||||||
Noncontrolling interest
|
4.0 | 3.8 | ||||||
|
||||||||
Total Equity
|
1,364.6 | 1,302.0 | ||||||
|
||||||||
Total Liabilities and Equity
|
$ | 2,559.1 | $ | 2,464.5 | ||||
|
4
Six Months Ended | ||||||||
June 30 | ||||||||
2010 | 2009 | |||||||
Cash Flows from Operating Activities
|
||||||||
Net income
|
$ | 96.9 | $ | 73.7 | ||||
Adjustments to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation and amortization
|
36.8 | 34.4 | ||||||
Deferred income taxes
|
3.2 | 6.6 | ||||||
Stock-based compensation
|
4.5 | 4.0 | ||||||
Tax benefit on stock-based awards
|
(2.2 | ) | — | |||||
Changes in assets and liabilities:
|
||||||||
(Increase) decrease in accounts receivable
|
(61.2 | ) | 36.7 | |||||
(Increase) decrease in inventories
|
(14.6 | ) | 56.8 | |||||
Increase (decrease) in current liabilities
|
23.9 | (59.4 | ) | |||||
Changes in other assets and liabilities, net
|
2.7 | 4.5 | ||||||
Contribution to defined benefit pension plans
|
(1.7 | ) | (1.6 | ) | ||||
Other, net
|
4.8 | (2.0 | ) | |||||
|
||||||||
Net cash provided by operating activities
|
93.1 | 153.7 | ||||||
|
||||||||
Cash Flows from Investing Activities
|
||||||||
Capital expenditures
|
(22.3 | ) | (13.7 | ) | ||||
Acquisition of businesses, net of cash acquired
|
— | (0.3 | ) | |||||
Purchases of available-for-sale investments
|
(14.7 | ) | (5.3 | ) | ||||
Proceeds from available-for-sale investments
|
5.5 | 4.2 | ||||||
Other, net
|
1.1 | 1.6 | ||||||
|
||||||||
Net cash used in investing activities
|
(30.4 | ) | (13.5 | ) | ||||
|
||||||||
Cash Flows from Financing Activities
|
||||||||
Short-term debt borrowings
|
3.4 | — | ||||||
Payment of dividends
|
(42.4 | ) | (39.4 | ) | ||||
Payment of dividends to noncontrolling interest
|
(0.5 | ) | — | |||||
Acquisition of common shares
|
(2.9 | ) | — | |||||
Proceeds from exercise of stock options
|
10.0 | 0.4 | ||||||
Tax benefit on stock-based awards
|
2.2 | — | ||||||
|
||||||||
Net cash used in financing activities
|
(30.2 | ) | (39.0 | ) | ||||
|
||||||||
Effect of foreign currency exchange rate changes on cash and cash
equivalents
|
(3.2 | ) | 2.7 | |||||
|
||||||||
Increase in cash and cash equivalents
|
29.3 | 103.9 | ||||||
Cash and cash equivalents
|
||||||||
Beginning of period
|
258.5 | 178.2 | ||||||
|
||||||||
End of period
|
$ | 287.8 | $ | 282.1 | ||||
|
5
6
Operating Income | ||||||||||||||||||||||||
Net Sales | Operating Income | as a % of Net Sales | ||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Three Months Ended June
30,
|
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Electrical
|
$ | 458.4 | $ | 397.0 | $ | 61.1 | $ | 31.2 | 13.3 | % | 7.9 | % | ||||||||||||
Power
|
188.0 | 187.2 | 32.4 | 35.4 | 17.2 | % | 18.9 | % | ||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 646.4 | $ | 584.2 | $ | 93.5 | $ | 66.6 | 14.5 | % | 11.4 | % | ||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Six Months Ended June 30,
|
||||||||||||||||||||||||
Electrical
|
$ | 867.7 | $ | 799.5 | $ | 101.2 | $ | 58.9 | 11.7 | % | 7.4 | % | ||||||||||||
Power
|
349.2 | 370.3 | 58.0 | 65.0 | 16.6 | % | 17.6 | % | ||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 1,216.9 | $ | 1,169.8 | $ | 159.2 | $ | 123.9 | 13.1 | % | 10.6 | % | ||||||||||||
|
June 30, 2010 | December 31, 2009 | |||||||
Raw material
|
$ | 92.9 | $ | 88.0 | ||||
Work-in-process
|
64.1 | 62.0 | ||||||
Finished goods
|
191.2 | 185.2 | ||||||
|
||||||||
|
348.2 | 335.2 | ||||||
Excess of FIFO over LIFO cost basis
|
(71.7 | ) | (71.7 | ) | ||||
|
||||||||
Total
|
$ | 276.5 | $ | 263.5 | ||||
|
7
Segment | ||||||||||||
Electrical | Power | Total | ||||||||||
Balance December 31, 2009
|
$ | 465.2 | $ | 278.5 | $ | 743.7 | ||||||
Translation adjustments
|
(2.7 | ) | (0.4 | ) | (3.1 | ) | ||||||
|
||||||||||||
Balance June 30, 2010
|
$ | 462.5 | $ | 278.1 | $ | 740.6 | ||||||
|
June 30, 2010 | December 31, 2009 | |||||||||||||||
Accumulated | Accumulated | |||||||||||||||
Gross Amount | Amortization | Gross Amount | Amortization | |||||||||||||
Definite-lived:
|
||||||||||||||||
Patents, tradenames
and trademarks
|
$ | 82.7 | $ | (13.1 | ) | $ | 83.0 | $ | (11.0 | ) | ||||||
Customer/Agent
relationships and
other
|
181.0 | (27.8 | ) | 181.3 | (22.0 | ) | ||||||||||
|
||||||||||||||||
Total
|
263.7 | (40.9 | ) | 264.3 | (33.0 | ) | ||||||||||
Indefinite-lived:
|
||||||||||||||||
Tradenames and other
|
56.2 | — | 56.2 | — | ||||||||||||
|
||||||||||||||||
Total
|
$ | 319.9 | $ | (40.9 | ) | $ | 320.5 | $ | (33.0 | ) | ||||||
|
8
June 30, | December 31, | |||||||
2010 | 2009 | |||||||
Common stock, $.01 par value:
|
||||||||
Class A — authorized 50.0 shares; issued and outstanding 7.2
and 7.2 shares
|
$ | 0.1 | $ | 0.1 | ||||
Class B — authorized 150.0 shares; issued and outstanding 52.8
and 52.5 shares
|
0.5 | 0.5 | ||||||
Additional paid-in-capital
|
171.6 | 158.4 | ||||||
Retained earnings
|
1,261.0 | 1,208.0 | ||||||
Accumulated other comprehensive loss:
|
||||||||
Pension and post retirement benefit plan adjustment, net of tax
|
(70.0 | ) | (71.7 | ) | ||||
Cumulative translation adjustment
|
(3.7 | ) | 2.7 | |||||
Unrealized gain on investment, net of tax
|
0.6 | 0.5 | ||||||
Cash flow hedge loss, net of tax
|
0.5 | (0.3 | ) | |||||
|
||||||||
Total Accumulated other comprehensive loss
|
(72.6 | ) | (68.8 | ) | ||||
|
||||||||
Hubbell Shareholders’ equity
|
1,360.6 | 1,298.2 | ||||||
Noncontrolling interest
|
4.0 | 3.8 | ||||||
|
||||||||
Total equity
|
$ | 1,364.6 | $ | 1,302.0 | ||||
|
Six Months Ended June 30, | ||||||||||||||||||||||||
2010 | 2009 | |||||||||||||||||||||||
Hubbell | Hubbell | |||||||||||||||||||||||
Shareholders' | Noncontrolling | Total | Shareholders' | Noncontrolling | Total | |||||||||||||||||||
Equity | interest | Equity | Equity | interest | Equity | |||||||||||||||||||
Equity, beginning of period
|
$ | 1,298.2 | $ | 3.8 | $ | 1,302.0 | $ | 1,008.1 | $ | 3.0 | $ | 1,011.1 | ||||||||||||
Total comprehensive income
|
92.4 | 0.7 | 93.1 | 96.3 | 0.5 | 96.8 | ||||||||||||||||||
Stock-based compensation
|
4.5 | — | 4.5 | 4.0 | — | 4.0 | ||||||||||||||||||
Exercise of stock options
|
10.0 | — | 10.0 | 0.4 | — | 0.4 | ||||||||||||||||||
Income tax windfall from
stock-based awards, net
|
2.2 | — | 2.2 | — | — | — | ||||||||||||||||||
Acquisition/surrender of
common shares
|
(3.5 | ) | — | (3.5 | ) | — | — | — | ||||||||||||||||
Issuance of shares
related to director’s
deferred compensation
|
— | — | — | 4.3 | — | 4.3 | ||||||||||||||||||
Dividends to
noncontrolling interest
|
(0.5 | ) | (0.5 | ) | — | — | — | |||||||||||||||||
Cash dividends declared
|
(43.2 | ) | — | (43.2 | ) | (39.5 | ) | — | (39.5 | ) | ||||||||||||||
|
||||||||||||||||||||||||
Equity, end of period
|
$ | 1,360.6 | $ | 4.0 | $ | 1,364.6 | $ | 1,073.6 | $ | 3.5 | $ | 1,077.1 | ||||||||||||
|
9
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net income
|
$ | 57.9 | $ | 39.6 | $ | 96.9 | $ | 73.7 | ||||||||
Foreign currency translation adjustments
|
(3.1 | ) | 26.8 | (6.4 | ) | 22.1 | ||||||||||
Amortization of net prior service costs and net actuarial
losses, net of tax
|
0.7 | 1.2 | 1.7 | 2.4 | ||||||||||||
Change in unrealized losses (gains) on investments, net of tax
|
0.2 | (0.1 | ) | 0.1 | 0.1 | |||||||||||
Change in unrealized (gains) losses on cash flow hedges, net
of tax
|
0.8 | (1.0 | ) | 0.8 | (1.5 | ) | ||||||||||
|
||||||||||||||||
Total Comprehensive income
|
56.5 | 66.5 | 93.1 | 96.8 | ||||||||||||
Less: Comprehensive income attributable to noncontrolling
interest
|
0.3 | 0.2 | 0.7 | 0.5 | ||||||||||||
|
||||||||||||||||
Comprehensive income attributable to Hubbell
|
$ | 56.2 | $ | 66.3 | $ | 92.4 | $ | 96.3 | ||||||||
|
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Numerator:
|
||||||||||||||||
Net income attributable to Hubbell
|
$ | 57.6 | $ | 39.4 | $ | 96.2 | $ | 73.2 | ||||||||
Less: Earnings allocated to participating securities
|
0.2 | 0.2 | 0.4 | 0.3 | ||||||||||||
|
||||||||||||||||
Net income available to common shareholders
|
57.4 | 39.2 | 95.8 | 72.9 | ||||||||||||
|
||||||||||||||||
Denominator:
|
||||||||||||||||
Average number of common shares outstanding
|
59.8 | 56.2 | 59.7 | 56.2 | ||||||||||||
Potential dilutive shares
|
0.4 | 0.1 | 0.4 | 0.1 | ||||||||||||
|
||||||||||||||||
Average number of diluted shares outstanding
|
60.2 | 56.3 | 60.1 | 56.3 | ||||||||||||
|
||||||||||||||||
|
||||||||||||||||
Earnings per Share:
|
||||||||||||||||
Basic
|
$ | 0.96 | $ | 0.70 | $ | 1.60 | $ | 1.30 | ||||||||
Diluted
|
$ | 0.95 | $ | 0.70 | $ | 1.59 | $ | 1.30 | ||||||||
|
||||||||||||||||
Anti-dilutive securities excluded from the calculation of earnings
per diluted share:
|
||||||||||||||||
Stock options and performance shares
|
0.7 | 2.2 | 0.7 | 2.3 | ||||||||||||
Stock appreciation rights
|
1.6 | 1.9 | 1.6 | 2.0 |
10
Pension Benefits | Other Benefits | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
|
||||||||||||||||
Components of net periodic benefit cost for the
three months ended June 30
|
||||||||||||||||
Service cost
|
$ | 3.0 | $ | 3.1 | $ | 0.1 | $ | — | ||||||||
Interest cost
|
9.3 | 9.1 | 0.5 | 0.4 | ||||||||||||
Expected return on plan assets
|
(10.4 | ) | (9.3 | ) | — | — | ||||||||||
Amortization of prior service cost
|
0.1 | 0.1 | — | — | ||||||||||||
Amortization of actuarial losses
|
1.2 | 1.7 | (0.1 | ) | — | |||||||||||
|
||||||||||||||||
Net periodic benefit cost
|
$ | 3.2 | $ | 4.7 | $ | 0.5 | $ | 0.4 | ||||||||
|
||||||||||||||||
Components of net periodic benefit cost for the
six months ended June 30
|
||||||||||||||||
Service cost
|
$ | 6.0 | $ | 6.2 | $ | 0.1 | $ | 0.1 | ||||||||
Interest cost
|
18.6 | 18.2 | 1.0 | 0.8 | ||||||||||||
Expected return on plan assets
|
(20.7 | ) | (18.6 | ) | — | — | ||||||||||
Amortization of prior service cost
|
0.2 | 0.2 | — | (0.1 | ) | |||||||||||
Amortization of actuarial losses
|
2.5 | 3.3 | (0.1 | ) | — | |||||||||||
|
||||||||||||||||
Net periodic benefit cost
|
$ | 6.6 | $ | 9.3 | $ | 1.0 | $ | 0.8 | ||||||||
|
11
Balance at December 31, 2009
|
$ | 9.0 | ||
Provision
|
3.9 | |||
Expenditures/other
|
(4.8 | ) | ||
|
||||
Balance at June 30, 2010
|
$ | 8.1 | ||
|
Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities
|
Level 2 — Quoted prices for similar assets and liabilities in active markets or inputs that
are observable for the asset or liability, either directly or indirectly
|
Level 3 — Unobservable inputs for which little or no market data exists, therefore
requiring a company to develop its own assumptions
|
Quoted Prices in | Quoted Prices in | |||||||||||
Active Markets | Active Markets | |||||||||||
for Identical | for Similar Assets | |||||||||||
Asset (Liability) | Assets (Level 1) | (Level 2) | Total | |||||||||
June 30, 2010
|
||||||||||||
Available for sale investments
|
$ | 35.3 | $ | — | $ | 35.3 | ||||||
Trading securities
|
2.8 | 2.8 | ||||||||||
Deferred compensation plan liabilities
|
(2.3 | ) | — | (2.3 | ) | |||||||
Derivatives:
|
||||||||||||
Forward exchange
contracts
|
— | 0.2 | 0.2 | |||||||||
Interest rate swap
|
— | 2.7 | 2.7 | |||||||||
|
||||||||||||
|
$ | 35.8 | $ | 2.9 | $ | 38.7 | ||||||
|
||||||||||||
|
||||||||||||
December 31, 2009
|
||||||||||||
Available for sale investments
|
$ | 25.9 | $ | — | $ | 25.9 | ||||||
Trading securities
|
2.2 | 2.2 | ||||||||||
Deferred compensation plan liabilities
|
(1.6 | ) | — | (1.6 | ) | |||||||
Derivatives:
|
||||||||||||
Forward exchange
contracts
|
— | (1.1 | ) | (1.1 | ) | |||||||
Interest rate swap
|
— | (0.5 | ) | (0.5 | ) | |||||||
|
||||||||||||
|
$ | 26.5 | $ | (1.6 | ) | $ | 24.9 | |||||
|
12
Asset/(Liability) Derivatives | ||||||||||
Fair Value | ||||||||||
Derivatives designated as hedges | Balance Sheet Location | June 30, 2010 | December 31, 2009 | |||||||
Forward exchange contracts
designated as cash flow hedges
|
Other accrued liabilities | $ | (0.1 | ) | $ | (1.1 | ) | |||
Forward exchange contracts
designated as cash flow hedges
|
Deferred taxes and other | 0.3 | — | |||||||
Interest rate swap designated
as a fair value hedge
|
Intangible assets and other | 2.7 | — | |||||||
Interest rate swap designated
as a fair value hedge
|
Other non-current liabilities | — | (0.5 | ) | ||||||
|
||||||||||
|
$ | 2.9 | $ | (1.6 | ) | |||||
|
13
Gain/(Loss) Recognized in Accumulated Other Comprehensive Loss | June 30, 2010 | December 31, 2009 | ||||||
Forward exchange contracts
|
$ | 0.2 | $ | (0.7 | ) |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
Location of Gain/(Loss) Reclassified into Income (Effective Portion) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Cost of goods sold
|
$ | (0.4 | ) | $ | 0.2 | $ | (1.1 | ) | $ | 1.4 |
14
• |
Revenue
|
• |
Price Realization
|
• |
Cost Containment
|
• |
Productivity
|
15
Three Months Ended June 30 | ||||||||||||||||
2010 | % of Net sales | 2009 | % of Net sales | |||||||||||||
|
||||||||||||||||
Net Sales
|
$ | 646.4 | $ | 584.2 | ||||||||||||
Cost of goods sold
|
435.4 | 410.0 | ||||||||||||||
|
||||||||||||||||
Gross Profit
|
211.0 | 32.6 | % | 174.2 | 29.8 | % | ||||||||||
Selling & administrative expense
|
117.5 | 18.2 | % | 107.6 | 18.4 | % | ||||||||||
|
||||||||||||||||
Operating income
|
93.5 | 14.5 | % | 66.6 | 11.4 | % | ||||||||||
Net income attributable to Hubbell
|
57.6 | 8.9 | % | 39.4 | 6.7 | % | ||||||||||
Earnings per share — diluted
|
$ | 0.95 | $ | 0.70 |
16
Three Months Ended | ||||||||
June 30 | ||||||||
(In millions) | 2010 | 2009 | ||||||
|
||||||||
Net sales
|
$ | 458.4 | $ | 397.0 | ||||
Operating income
|
61.1 | 31.2 | ||||||
Operating margin
|
13.3 | % | 7.9 | % |
Three Months Ended | ||||||||
June 30 | ||||||||
(In millions) | 2010 | 2009 | ||||||
|
||||||||
Net sales
|
$ | 188.0 | $ | 187.2 | ||||
Operating income
|
32.4 | 35.4 | ||||||
Operating margin
|
17.2 | % | 18.9 | % |
17
Six Months Ended June 30 | ||||||||||||||||
2010 | % of Net sales | 2009 | % of Net sales | |||||||||||||
Net Sales
|
$ | 1,216.9 | $ | 1,169.8 | ||||||||||||
Cost of goods sold
|
830.2 | 828.6 | ||||||||||||||
|
||||||||||||||||
Gross Profit
|
386.7 | 31.8 | % | 341.2 | 29.2 | % | ||||||||||
Selling & administrative expense
|
227.5 | 18.7 | % | 217.3 | 18.6 | % | ||||||||||
|
||||||||||||||||
Operating income
|
159.2 | 13.1 | % | 123.9 | 10.6 | % | ||||||||||
Net income attributable to Hubbell
|
96.2 | 7.9 | % | 73.2 | 6.3 | % | ||||||||||
Earnings per share — diluted
|
$ | 1.59 | $ | 1.30 |
18
Six Months Ended | ||||||||
June 30 | ||||||||
(In millions) | 2010 | 2009 | ||||||
|
||||||||
Net sales
|
$ | 867.7 | $ | 799.5 | ||||
Operating income
|
101.2 | 58.9 | ||||||
Operating margin
|
11.7 | % | 7.4 | % |
Six Months Ended | ||||||||
June 30 | ||||||||
(In millions) | 2010 | 2009 | ||||||
|
||||||||
Net sales
|
$ | 349.2 | $ | 370.3 | ||||
Operating income
|
58.0 | 65.0 | ||||||
Operating margin
|
16.6 | % | 17.6 | % |
19
Six Months Ended | ||||||||
June 30 | ||||||||
(In millions) | 2010 | 2009 | ||||||
|
||||||||
Net cash provided by (used in):
|
||||||||
Operating activities
|
$ | 93.1 | $ | 153.7 | ||||
Investing activities
|
(30.4 | ) | (13.5 | ) | ||||
Financing activities
|
(30.2 | ) | (39.0 | ) | ||||
Effect of foreign
currency exchange
rate changes on
cash and cash
equivalents
|
(3.2 | ) | 2.7 | |||||
|
||||||||
Net change in cash and cash equivalents
|
$ | 29.3 | $ | 103.9 | ||||
|
20
June 30, | December 31, | |||||||
(In millions) | 2010 | 2009 | ||||||
|
||||||||
Total Debt
|
$ | 504.0 | $ | 497.2 | ||||
Total Hubbell Shareholders’ Equity
|
1,360.6 | 1,298.2 | ||||||
|
||||||||
Total Capital
|
$ | 1,864.6 | $ | 1,795.4 | ||||
|
||||||||
Total Debt to Total Capital
|
27 | % | 28 | % | ||||
Cash and Investments
|
$ | 325.9 | $ | 286.6 | ||||
Net Debt
|
$ | 178.1 | $ | 210.6 | ||||
Net Debt to Total Capital
|
10 | % | 12 | % |
21
22
• |
Changes in demand for our products, market conditions, product quality, or product
availability adversely affecting sales levels.
|
• |
Changes in markets or competition adversely affecting realization of price increases.
|
• |
Failure to achieve projected levels of efficiencies, cost savings and cost reduction
measures, including those expected as a result of our lean initiative and strategic sourcing
plans.
|
• |
The expected benefits and the timing of other actions in connection with our enterprise-wide
business system.
|
• |
Availability and costs of raw materials, purchased components, energy and freight.
|
• |
Changes in expected or future levels of operating cash flow, indebtedness and capital
spending.
|
• |
General economic and business conditions in particular industries or markets.
|
• |
The anticipated benefits from the Federal stimulus package.
|
• |
Regulatory issues, changes in tax laws or changes in geographic profit mix affecting tax
rates and availability of tax incentives.
|
• |
A major disruption in one of our manufacturing or distribution facilities or headquarters,
including the impact of plant consolidations and relocations.
|
• |
Changes in our relationships with, or the financial condition or performance of, key
distributors and other customers, agents or business partners which could adversely affect our
results of operations.
|
• |
Impact of productivity improvements on lead times, quality and delivery of product.
|
• |
Anticipated future contributions and assumptions including changes in interest rates and plan
assets with respect to pensions.
|
• |
Adjustments to product warranty accruals in response to claims incurred, historical
experiences and known costs.
|
• |
Unexpected costs or charges, certain of which might be outside of our control.
|
• |
Changes in strategy, economic conditions or other conditions outside of our control affecting
anticipated future global product sourcing levels.
|
• |
Ability to carry out future acquisitions and strategic investments in our core businesses as
well as the acquisition related costs.
|
23
• |
Unanticipated difficulties integrating acquisitions as well as the realization of expected
synergies and benefits anticipated when we first enter into a transaction.
|
• |
Future repurchases of common stock under our common stock repurchase program.
|
• |
Changes in accounting principles, interpretations, or estimates.
|
• |
The outcome of environmental, legal and tax contingencies or costs compared to amounts
provided for such contingencies.
|
• |
Adverse changes in foreign currency exchange rates and the potential use of hedging
instruments to hedge the exposure to fluctuating rates of foreign currency exchange on
inventory purchases.
|
• |
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 Company’s Annual Report on Form 10-K for the year ended December 31, 2009.
|
24
Approximate | ||||||||||||
Total | Dollar Value of | |||||||||||
Number | Shares that May | |||||||||||
of Class B | Average | Yet Be Purchased | ||||||||||
Shares | Price Paid | Under the Dec. | ||||||||||
Purchased | per Class B | 2007 Program | ||||||||||
Period | (000’s) | Share | (000’s) | |||||||||
Balance as of March 31, 2010
|
$ | 161,000 | ||||||||||
April 2010
|
— | $ | — | 161,000 | ||||||||
May 2010
|
— | — | 161,000 | |||||||||
June 2010
|
70 | 41.79 | 158,100 | |||||||||
|
||||||||||||
Total for the quarter ended
June 30, 2010
|
70 | $ | 41.79 | $ | 158,100 |
Number | Description | |||
|
||||
31.1 | * |
Certification of Chief Executive Officer Pursuant to Item 601(b)(31) of Regulation S-K, as
adopted pursuant to Section 302 of the Sarbanes — Oxley Act of 2002.
|
||
|
||||
31.2 | * |
Certification of Chief Financial Officer Pursuant to Item 601(b)(31) of Regulation S-K, as
adopted pursuant to Section 302 of the Sarbanes — Oxley Act of 2002.
|
||
|
||||
32.1 | * |
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes — Oxley Act of 2002.
|
||
|
||||
32.2 | * |
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes — Oxley Act of 2002.
|
||
|
||||
101.INS | ** |
XBRL Instance Document.
|
25
Number | Description | |||
|
||||
101.SCH | ** |
XBRL Taxonomy Extension Schema Document.
|
||
|
||||
101.CAL | ** |
XBRL Taxonomy Extension Calculation Linkbase Document.
|
||
|
||||
101.DEF | ** |
XBRL Taxonomy Extension Definition Linkbase Document.
|
||
|
||||
101.LAB | ** |
XBRL Taxonomy Extension Label Linkbase Document.
|
||
|
||||
101.PRE | ** |
XBRL Taxonomy Extension Presentation Linkbase Document.
|
* |
Filed herewith
|
|
** |
In accordance with Rule 406T of Regulation S-T, this interactive data file is deemed not filed
or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the
Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Exchange
Act of 1934, as amended, and otherwise is not subject to liability under these sections.
|
26
Date: July 23, 2010
|
HUBBELL INCORPORATED | |||
|
||||
/s/ David G. Nord
|
/s/ Darrin S. Wegman | |||
|
||||
David G. Nord
|
Darrin S. Wegman | |||
Senior Vice President and Chief
Financial Officer
|
Vice President, Controller
(Chief Accounting Officer) |
27
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
Customers
Customer name | Ticker |
---|---|
Quanta Services, Inc. | PWR |
Thermo Fisher Scientific Inc. | TMO |
WESCO International, Inc. | WCC |
Suppliers
Supplier name | Ticker |
---|---|
ABB Ltd | ABB |
The Boeing Company | BA |
DuPont de Nemours, Inc. | DD |
General Electric Company | GE |
Southern Copper Corporation | SCCO |
Newmont Corporation | NEM |
General Dynamics Corporation | GD |
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|