Hubbell Incorporated (NYSE: HUBA, HUBB) reported net sales in the second quarter of 2014 of $855.8 million, an increase of 7 percent compared to the $801.3 million reported in the second quarter of 2013. During the second quarter, the company’s operating income was $143.7 million, or 16.8 percent, of net sales, compared to $132.1 million, or 16.5 percent of net sales, for the comparable period in 2013.
Hubbell’s net income in the second quarter of 2014 was $90.2 million, an increase of 10 percent compared to the $82.1 million reported in the second quarter of 2013. Earnings per diluted share were $1.51, an increase of 10 percent compared to the $1.37 reported in the second quarter of 2013. Free cash flow (defined as cash flow from operations less capital expenditures) was $43.4 million in the second quarter of 2014 versus $52.8 million reported in the comparable period of 2013.
For the first six months of 2014, Hubbell’s net sales were $1.6 billion, an increase of 5 percent compared to the same period last year. The firm’s operating income was $248.5 million, or 15.4 percent of net sales, compared to $229.8 million, or 14.9 percent of net sales, for the comparable period of 2013.
“The second quarter results reflect good operational execution on improving order trends,” said David G. Nord, chairman, president, and CEO, in a company press release. “After a slower than planned start to the year, we were encouraged by the broad based strengthening of underlying demand experienced during the quarter. We increased our earnings per diluted share by 10 percent in the second quarter compared to 2013 as improving market conditions and solid execution of productivity initiatives drove higher profitability.”
Hubbell’s electrical segment net sales in the second quarter of 2014 increased 8 percent to $612.4 million compared to $564.5 million reported in the second quarter of 2013. The company’s power segment net sales in the second quarter of 2014 were $243.4 million compared to $236.8 million reported in the second quarter of 2013. Acquisitions added five percentage points to the sales increase in the quarter. Compared to the second quarter of 2013, Hubbell’s operating income increased 7 percent to $95.5 million.
“We continued to make progress on our growth initiatives by completing two acquisitions in the second quarter and another small but important acquisition in July which will be added to the electrical segment,” Nord said. “We have invested $147 million on six acquisitions so far this year and I am proud of the entire team’s efforts in driving growth while also ensuring each acquisition is seamlessly transitioned into the Hubbell family.”
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