Hubbell today announced that it will release first quarter 2020
financial results prior to the opening of the market on April 30,
2020. The Company will then webcast its Analysts' Conference Call
to discuss the results at 10:00 AM ET.
These preliminary results are anticipated to be consistent with
the Company’s previously communicated expectation to deliver modest
growth in adjusted diluted earnings per share relative to the
first quarter of 2019. Strong results in the Utility Solutions
segment driven by ongoing grid modernization and renewable energy
trends, as well as footprint optimization productivity initiatives
and positive price/cost drove performance in the first quarter.
These factors allowed the Company to overcome headwinds incurred in
the quarter as a result of disruptions related to the COVID-19
pandemic, primarily in the Electrical segment.
As a result of the challenging and highly uncertain economic
environment, Hubbell also today announced that it is withdrawing
2020 guidance and provided an update on actions the Company is
taking in response to current and anticipated impacts of the
COVID-19 pandemic.
“At Hubbell, our priority is the safety and well-being of our
employees, extended families, our customers and suppliers, our
communities, and our shareholders,” said Chairman and CEO Dave
Nord. “Hubbell provides mission-critical electrical and utility
solutions which enable our customers to operate critical
infrastructure safely, reliably and efficiently. We are committed
to supporting our customers with high quality and reliable
products, and are continuing work in our manufacturing locations
where possible, while protecting the safety of our employees by
implementing expanded cleaning, safety and social-distancing
protocols in our plants and warehouses, mandating remote work where
possible, and offering emergency paid leave related to
COVID-19.”
As we consider the anticipated challenges we expect to face
relating to the COVID-19 pandemic, we have reviewed all aspects of
our business and implemented a series of cost management actions to
sustain the organization through this economic uncertainty,
including:
- The Board of Directors will forego its quarterly retainer
payments for the second quarter
- Senior executives will take a 25% salary reduction in the
second quarter
- All other executives will take a 15% salary reduction in the
second quarter
- Salaried employees will take a 2-week furlough sometime
during the second quarter
- Various other discretionary cost reduction and cash
preservation actions
Concurrent with these cost actions, we are also providing
additional support to our hourly employees that manufacture the
products that are so essential to our communities. To that end, we
are paying all applicable hourly employees with additional
appreciation bonus pay during the second quarter.
To maximize our financial flexibility, the Company has also
drawn $225 million of an available $750 million on its revolving
credit facility. This was a proactive measure we took to further
bolster our strong liquidity position in the event that economic
conditions worsen significantly.
Mr. Nord concluded, “We are committed to ensuring we come out on
the other side of this challenging period in a position of strength
to meet the demands of our customers. These steps, along with
reducing discretionary and non-essential spending, will help
protect Hubbell’s ability to serve the critical infrastructure
needs of our customers in the future. We will continue to
reevaluate our next steps as the situation continues to
evolve.”
Conference Call Details
The full text of the press release announcing the results will
be posted on Hubbell's corporate website under the Press
Release section. You can also access this information by
going to www.hubbell.com and selecting "Investors" from
the options at the bottom of the page and then "Press Releases"
from the drop-down menu.
The live audio of the conference call and accompanying materials
will also be available and can be accessed by visiting
Hubbell's Events and Presentations section. You can
also access this information by going
to www.hubbell.com and selecting "Investors" from the
options at the bottom of the page and then "Events/Presentations"
from the drop-down menu.
Audio replays of the conference call are available in three
ways:
- Two hours after the conclusion of the original conference call
by calling (855) 859-2056 and using passcode number 9341227. The
replay will remain available until May 30, 2020 at 11:59 PM
ET.
- One hour after the call by going
to www.hubbell.com and selecting "Investors" from the
options at the bottom of the page and then "Events/Presentations"
from the drop-down menu.
- As a podcast 24 hours after the original conference call
by going to www.hubbell.com and selecting "Investors"
from the options at the bottom of the page and then
"Events/Presentations" from the drop-down menu, then selecting
"Past Events".
Forward Looking Statements
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, condition and
outlook, anticipated end markets and anticipated effects of the
COVID-19 pandemic and the responses thereto, including the
pandemic’s impact on general economic and market conditions, as
well as on our business, customers, end markets, results of
operations and financial condition and anticipated actions to be
taken by management to sustain the Company during the economic
uncertainty caused by the pandemic and related governmental and
business actions, as well as other statements that are not strictly
historic in nature. In addition, all statements regarding
anticipated growth, changes in operating results, market conditions
and economic conditions are forward-looking, including those
regarding the adverse impact of the COVID-19 pandemic on the
Company’s end markets. These statements may be identified by the
use of forward-looking words or phrases such as “believe”,
“expect”, “anticipate”, “plan”, “estimated”, “target”,
“should”, “could”, “may”, "subject to", “continues”,
“growing”, “projected”, “if”, “potential”, “will likely
be”, and similar words and phrases. Such forward-looking statements
are based on our current expectations and involve numerous
assumptions, known and unknown risks, uncertainties and other
factors which may cause actual and future performance or the
Company’s achievements 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: our ability to effectively execute our business plan in
light of the COVID-19 pandemic; the effectiveness of the actions
that we take to address the effects of the COVID-19 pandemic; the
outcome of contingencies or costs compared to amounts provided for
such contingencies, including those with respect to pension
withdrawal liabilities; achieving sales levels to meet revenue
expectations; unexpected costs or charges, certain of which may be
outside the Company’s control; the effects of tariffs and other
trade actions taken by the U.S. and other countries; changes in
product sales prices and material costs; expected benefits of
productivity improvements and cost reduction actions; effects of
unfavorable foreign currency exchange rates; the impact of U.S. tax
reform legislation; general economic and business conditions; the
impact of and the ability to complete and integrate strategic
acquisitions; the impact of certain divestitures, including the
sale of the Haefely business; the ability to effectively develop
and introduce new products, expand into new markets and deploy
capital; 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, 2019 and Quarterly Reports on Form 10-Q.
About Hubbell
Hubbell Incorporated is an international manufacturer of
high quality, reliable electrical products and utility solutions
for a broad range of customer and end market applications. With
2019 revenues of $4.6 billion, Hubbell Incorporated operates
manufacturing facilities in the United States and around the world.
The corporate headquarters is located in Shelton, CT.
Dan Innamorato
Hubbell Incorporated
40 Waterview Drive
PO Box 1000
Shelton, CT 06484
(475) 882-4000
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