Manufacturers

Hubbell Execs to Take Salary Cuts in COVID-19 Response

Hubbell Execs to Take Salary Cuts in COVID-19 Response

SHELTON, Conn. — 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.

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:

  1. 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.
  2. 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.
  3. 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”.
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