Hubbell Reports Third Quarter Results

Net Sales $734.8 Million and Earnings of $1.18 Per Diluted Share
ORANGE, Conn.--(Business Wire)--
Hubbell Incorporated (NYSE: HUBA, HUBB) today reported operating
results for the third quarter ended September 30, 2008.

Net sales in the third quarter of 2008 were $734.8 million, an
increase of 13% from the $652.7 million reported in the third quarter
of 2007. The increase in quarter-over-quarter sales was due to strong
demand for our power and high voltage instrumentation products,
acquisitions and higher selling prices. Acquisitions and selling price
increases added approximately 4% and 3%, respectively, to net sales in
the third quarter of 2008. Operating income improved 16% to $103.3
million, resulting in operating income as a percent of net sales of
14.1%. Net income in the third quarter of 2008 was 2% higher at $66.5
million compared to $65.3 million reported in the third quarter of
2007. Earnings per diluted share were $1.18 or 7% above the $1.10
reported in the third quarter last year. Last year's third quarter
earnings per diluted share included a $0.09 benefit primarily related
to the finalization of the 2006 federal tax return and favorable
benefits from foreign operations. Excluding the favorable tax
adjustment in the prior year, 2008 third quarter earnings per diluted
share increased 17% compared to the year ago period.

For the first nine months of 2008, sales were $2,052.3 million, an
increase of 7% over the same period last year. Operating income of
$273.6 million increased 19% resulting in year-to-date operating
income as a percent of net sales of 13.3%. Net income for the first
nine months was $176.4 million, an increase of 10% compared to the
$160.3 million reported in 2007. Earnings per diluted share were $3.12
or 16% above the $2.68 reported for the equivalent period of 2007.

In the third quarter of 2008, the Company invested a total of
approximately $102.5 million to acquire USCO Power Equipment
Corporation, CDR Systems Corp. and a product line from Electro
Composites Inc. all of which have joined Hubbell's Power segment.
These three businesses combined are expected to generate annual
revenues of approximately $90 million and will be modestly accretive
to earnings in 2008. Based in Leeds, Alabama, USCO Power Equipment
Corporation provides high quality transmission line and substation
disconnect switches to the electric utility industry. Based in Ormond
Beach, Florida, CDR Systems Corp. manufactures polymer concrete and
fiberglass enclosures serving a variety of end markets, including
electric, gas and water utilities, cable television and
telecommunications industries. The product line acquired from Electro
Composites Inc. is based in Quebec, Canada, and manufactures a high
voltage condenser bushing housed in composite materials.

Cash flow from operations was $234.9 million in the first nine
months of 2008 compared to $221.2 million in the equivalent period of
2007 as higher earnings were partially offset by an increased use of
working capital. Capital expenditures were $34.0 million in the first
nine months compared to $44.6 million in the equivalent period of
2007. During the first nine months of 2008, the Company has invested
$205.9 million on acquisitions and repurchased 2.0 million shares of
its common stock for $96.6 million.

OPERATIONS REVIEW

Timothy H. Powers, Chairman, President, and Chief Executive
Officer, said "The third quarter results demonstrated our continued
long term improvement in profitability, marking the 7th consecutive
quarter with year-over-year operating profit margin improvement. In
spite of significant commodity cost increases, we are proud of our
ability to expand operating margins both sequentially and
year-over-year, due to our nearly two year focus on price realization,
cost containment and productivity. In addition, free cash flow
generation remained strong; free cash flow in the third quarter of
2008 was 150% of net income. Our financial condition remains strong;
at the end of the third quarter our debt to capital ratio was 31% and
we had no commercial paper outstanding. The Company also has available
its entire $350 million committed bank credit facility which remains a
backup to our commercial paper program. We are also pleased with the
three acquisitions completed in the third quarter that have been added
to the Power segment. These businesses will broaden our product lines
in the U.S. and internationally, and are expected to generate growth
in this segment."

Mr. Powers added "The overall economic environment has held up
reasonably well considering the uncertainty surrounding the credit
markets; in particular, the collapse of several large banks and
investment firms have shaken consumer confidence. In addition, the
U.S. economy has been hampered by continued housing market weakness
and high energy costs. International business continues to benefit
from market demand for high voltage test equipment as well as energy
related and mining equipment. The U.S. non-residential construction
and industrial maintenance and repair markets have softened. Markets
served by Hubbell's Power segment were strong due to hurricane related
storm activity, increased demand for transmission products and modest
growth for distribution voltage products."

SEGMENT REVIEW

The comments and year-over-year percentages in this segment review
are based on third quarter results in 2008 and 2007. The prior year
amounts have been adjusted to reflect the Company's realigned
reporting segments.

Electrical segment net sales increased 5% year-over-year due to
double digit growth at wiring products and electrical products and the
impact of the Kurt Versen acquisition partially offset by weaker
residential product sales. The acquisition and selling price increases
each added approximately two percentage points to net sales in the
third quarter of 2008. Electrical segment operating income increased
7% compared to the third quarter of 2007. The increased profitability
in the segment was due to higher sales at wiring products and
electrical products, productivity improvements and the lighting
acquisition. These increases were partially offset by weaker results
in our residential lighting business and commodity cost headwinds in
our C&I Lighting businesses, particularly steel.

Hubbell's Power segment reported a 36% increase in net sales
compared to the third quarter of 2007 due to improved underlying
demand, the impact of acquisitions, strong storm related orders and
selling price increases. Acquisitions and selling price increases
added approximately ten and six percentage points, respectively, to
net sales in the third quarter of 2008. Operating income increased 41%
in the third quarter of 2008 versus the same period last year due to
higher sales, productivity improvements, selling price increases and a
favorable product mix.

SUMMARY & OUTLOOK

Mr. Powers commented "Looking ahead, we anticipate a mix of
challenges and opportunities in the overall markets we serve.
Hubbell's largest served market, non-residential construction, is
expected to be a challenge going forward based on several leading
indicators including the current tumultuous credit markets, employment
levels and continued weak housing demand. The residential construction
market is still contracting and will likely continue to be negative
throughout next year. The utility market is expected to expand, with
growth in transmission and substation spending while distribution
investments will likely be modest. We expect continued growth for the
remainder of the year in the industrial markets that we serve."

Mr. Powers concluded "Based on the strong third quarter results
and recently completed acquisitions, we are revising our projections
for the full year 2008: net sales are expected to increase in the
range of 6-7% above 2007 and earnings per diluted share are now
projected to be in the range of $3.80-$3.90. In addition, we expect
operating profit margins to increase approximately 100 basis points
compared to 2007 and free cash flow to exceed net income. Included in
the range, in anticipation of slower markets in 2009, we expect to
incur approximately $0.05 of workforce reduction costs in the fourth
quarter of 2008. While we cannot predict 2009 at the present time, we
believe our continued focus in the areas of pricing discipline,
productivity programs, cost containment and strategic growth
initiatives could help us manage through some of the potential impacts
from market weakness."

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 capital resources,
performance and results of operations and are based on the Company's
reasonable current expectations. In addition, all statements regarding
anticipated growth or improvement in operating results, anticipated
market conditions, and economic recovery are forward-looking. These
statements may be identified by the use of forward-looking words or
phrases such as "improved", "leading", "improving", "continuing
growth", "continued", "ranging", "contributing", "primarily", "plan",
"expect", "anticipated," "expected", "expectations," "should result",
"uncertain", "goals", "projected", "on track", "likely", and others.
Such forward-looking statements involve numerous assumptions, known
and unknown risks, uncertainties and other factors which may cause
actual and future performance or achievements of the Company 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: achieving sales levels
to fulfill revenue expectations; unexpected costs or charges, certain
of which may be outside the control of the Company; expected benefits
of process improvement and other lean initiatives; the expected
benefit and effect of the business information system initiative and
restructuring programs; the availability and costs of raw materials
and purchased components; realization of price increases; the ability
to achieve projected levels of efficiencies and cost reduction
measures; general economic and business conditions; competition; and
other factors described in our Securities and Exchange Commission
filings, including the "Business" and "Risk Factors" Sections in the
Annual Report on Form 10-K for the year ended December 31, 2007.

Hubbell Incorporated is an international manufacturer of quality
electrical and electronic products for a broad range of
non-residential and residential construction, industrial and utility
applications. With 2007 revenues of $2.5 billion, Hubbell Incorporated
operates manufacturing facilities in the U.S., Canada, Puerto Rico,
Mexico, Italy, Switzerland, Brazil, Australia and the United Kingdom,
participates in joint ventures in Taiwan and the People's Republic of
China, and maintains sales offices in Singapore, Hong Kong, South
Korea, the People's Republic of China, Mexico, and the Middle East.
The corporate headquarters is located in Orange, CT.

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HUBBELL INCORPORATED
Condensed Consolidated Statement of Income
(in millions, except per share data)

THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
----------- ----------------------- -----------
2008 2007 2008 2007
----------- ----------- ----------- -----------

Net Sales $734.8 $652.7 $2,052.3 $1,919.2
Cost of goods sold 514.6 458.1 1,434.8 1,364.3
Selling &
administrative
expenses 116.9 105.7 343.9 324.1
----------- ----------- ----------- -----------

Total Operating Income 103.3 88.9 273.6 230.8
Operating income
as a % of Net
Sales 14.1% 13.6% 13.3% 12.0%
Interest expense, net (6.8) (3.5) (16.9) (11.5)
Other (expense)
income, net (0.8) 0.3 (2.9) 0.7
----------- ----------- ----------- -----------

Income Before Income
Taxes 95.7 85.7 253.8 220.0
Provision for income
taxes 29.2 20.4 77.4 59.7
----------- ----------- ----------- -----------

Net Income $ 66.5 $ 65.3 $ 176.4 $ 160.3
=========== =========== =========== ===========

Earnings Per Share:
Basic $ 1.19 $ 1.12 $ 3.15 $ 2.71
Diluted $ 1.18 $ 1.10 $ 3.12 $ 2.68

Average Shares
Outstanding:
Basic 55.9 58.3 56.1 59.1
Diluted 56.4 59.2 56.5 59.9
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HUBBELL INCORPORATED
Segment Information
(in millions)

THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
----------- ----------- ----------- -----------
2008 2007 2008 2007
----------- ----------- ----------- -----------

Net Sales
----------------------
Electrical $522.9 $496.4 $1,500.0 $1,442.2
Power 211.9 156.3 552.3 477.0

----------- ----------- ----------- -----------
Total Net Sales $734.8 $652.7 $2,052.3 $1,919.2
=========== =========== =========== ===========

Operating Income
----------------------
Electrical $ 68.7 $ 64.3 $ 182.6 $ 156.7
Power 34.6 24.6 91.0 74.1
----------- ----------- ----------- -----------
Total Operating
Income $103.3 $ 88.9 $ 273.6 $ 230.8
=========== =========== =========== ===========

Operating Income as a
% of Net Sales
----------------------
Electrical 13.1% 13.0% 12.2% 10.9%
Power 16.3% 15.7% 16.5% 15.5%
Total 14.1% 13.6% 13.3% 12.0%
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HUBBELL INCORPORATED
Condensed Consolidated Balance Sheet
(in millions)

(UNAUDITED)
SEPTEMBER 30, DECEMBER 31,
2008 2007
------------- -------------
ASSETS

Cash and cash equivalents $ 194.1 $ 77.5
Accounts receivable, net 428.7 332.4
Inventories, net 340.0 322.9
Deferred taxes and other 47.6 55.2
------------- -------------

TOTAL CURRENT ASSETS 1,010.4 788.0

Property, plant and equipment, net 341.5 327.1
Investments 34.7 39.2
Goodwill 589.0 466.6
Intangible assets and other 289.4 242.5
------------- -------------

TOTAL ASSETS $ 2,265.0 $ 1,863.4
============= =============

LIABILITIES AND SHAREHOLDERS' EQUITY

Short-term debt $ - $ 36.7
Accounts payable 207.0 154.0
Accrued salaries, wages and employee
benefits 59.2 58.6
Dividends payable 19.6 19.2
Accrued insurance 49.9 46.7
Other accrued liabilities 138.3 104.3
------------- -------------

TOTAL CURRENT LIABILITIES 474.0 419.5

Long-term debt 497.3 199.4
Other non-current liabilities 180.9 161.9
------------- -------------

TOTAL LIABILITIES 1,152.2 780.8

SHAREHOLDERS' EQUITY 1,112.8 1,082.6
------------- -------------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,265.0 $ 1,863.4
============= =============
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HUBBELL INCORPORATED
Condensed Consolidated Statement Of Cash Flows
(in millions)

NINE MONTHS ENDED
SEPTEMBER 30
(UNAUDITED) (UNAUDITED)
----------- -----------
2008 2007
----------- -----------

Cash Flows From Operating Activities
Net Income $ 176.4 $ 160.3
Depreciation and amortization 46.4 44.8
Stock-based compensation expense 8.0 8.1
Deferred income taxes 2.7 (9.1)
Changes in working capital (2.1) 38.4
Contributions to defined benefit pension
plans (3.2) (18.9)
Other, net 6.7 (2.4)
----------- -----------

Net cash provided by operating activities 234.9 221.2
----------- -----------

Cash Flows From Investing Activities
Capital expenditures (34.0) (44.6)
Acquisition of businesses, net of cash
acquired (205.9) (2.9)
Net change in investments 4.0 (0.5)
Other, net 6.0 3.9
----------- -----------

Net cash used in investing activities (229.9) (44.1)
----------- -----------

Cash Flows From Financing Activities
Borrowings/repayments of debt (36.7) 48.4
Issuance of long term debt 297.7 -
Payment of dividends (57.3) (59.3)
Acquisition of common shares (96.6) (173.5)
Proceeds from exercise of stock options 8.1 40.2
Other, net (1.8) 6.0
----------- -----------

Net cash provided by (used) in financing
activities 113.4 (138.2)
----------- -----------

Effect of foreign exchange rate changes on
cash and cash equivalents (1.8) 2.3
----------- -----------

Increase in cash and cash equivalents 116.6 41.2
Cash and cash equivalents
Beginning of period 77.5 45.3
----------- -----------
End of period $ 194.1 $ 86.5
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Hubbell Incorporated
William R. Sperry, 203-799-4100

Copyright Business Wire 2008