Hubbell Incorporated (NYSE: HUBA, HUBB) of Shelton, Conn., reported net sales of $835.9 million during the third quarter, 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.
Hubbell’s net income in the third quarter of 2013 was $96.5 million versus $87.1 million reported during the same period last year. Earnings per diluted share were $1.62 in the third quarter of 2013 compared to $1.45 during the same quarter in 2012, and free cash flow (defined as cash flow from operations less capital expenditures) was $103.0 million (versus $77.1 million).
For the first nine months of 2013, Hubbell’s 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.
“We reported another quarter of strong performance with higher sales and operating margin compared to 2012,” said David G. Nord, president and CEO, in a press release. “The sales increase was largely due to the impact of acquisitions as well as strength in several areas of the electrical segment.”
Hubbell’s 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.
Power segment net sales in the third quarter of 2013 were $238.3 million compared to $237.9 million during the same period last year. According to the company, those sales were impacted by weaker overall utility demand and unfavorable foreign currency translation offset by the favorable impact of an acquisition.
“Looking to the remainder of 2013, we remain highly focused and committed to achieving our financial goals for the year,” said Nord. “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 50 percent of our overall sales.”
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