Hubbell Reports First Quarter Results; Net Sales of $570.5 Million and Earnings Per Diluted Share of $0.64

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ORANGE, Conn.--(Business Wire)--
Hubbell Incorporated (NYSE: HUBA, HUBB) today reported operating results for the
first quarter ended March 31, 2010.

Net sales in the first quarter of 2010 were $570.5 million, a decrease of 3%
compared to the $585.6 million reported in the first quarter of 2009. Operating
income was $65.7 million, 15% above 2009, resulting in operating income as a
percent of net sales of 11.5%. Net income in the first quarter of 2010 was $38.6
million versus $33.8 million reported in 2009. Earnings per diluted share were
$0.64 in the first quarter of 2010 compared to $0.60 reported in the first
quarter of 2009. Free cash flow (defined as cash flow from operations less
capital expenditures) was $12.8 million in the first quarter of 2010 versus
$38.6 million reported in 2009.

OPERATIONS REVIEW

Timothy H. Powers, Chairman, President, and Chief Executive Officer said "Our
first quarter results were consistent with our recent performance, with
year-over-year operating margin expansion despite lower sales. Our overall
reported sales were down 3%, including the Burndy acquisition which added 7% to
net sales in the quarter. The sales decline in the quarter was primarily due to
weaker demand for our non-residential construction products, decreased shipments
for our high voltage test equipment and lower storm related volume in our power
business. In addition, favorable foreign currency translation added 2% to sales
while lower pricing reduced sales by 1%. Importantly, our incoming orders
exceeded our billings for the first quarter resulting in a $33 million increase
in backlog. I am also pleased that despite lower sales, we were able to increase
operating margin by 170 basis points compared to 2009. The margin improvement
was due to productivity improvements and lower restructuring costs while
commodity costs and pricing were slightly negative. We did take further actions
in the first quarter to reduce salaried and hourly headcount in businesses where
demand has continued to deteriorate."

Mr. Powers added "The economic environment was generally consistent with our
expectations. In our Electrical segment, U.S. non-residential construction
continues to experience dramatically lower demand due to tight credit and rising
vacancy rates. The industrial maintenance and repair markets have improved in
many areas as factory utilization has risen and there has been an increase in
capital investments. The residential market appears to have bottomed but the
recovery has been slower than anticipated and the growth projections for the
year have been tempered. In our Power segment, excluding storms, underlying
demand was lower for both distribution and transmission products as utility
companies remained cautious with spending as the year began."

SEGMENT REVIEW

The comments and year-over-year percentages in this segment review are based on
first quarter results in 2010 and 2009.

Electrical segment net sales increased 2% year-over-year as the impact of Burndy
more than offset weaker demand in our Commercial and Industrial lighting
businesses and lower high voltage test equipment shipments. The acquisition of
Burndy in the fourth quarter of 2009 added 11% to net sales and was accretive to
earnings in the first quarter of 2010. Compared to the first quarter of 2009,
operating income increased 45% to $40.1 million, or 9.8% of net sales. The
increase in operating income and margin was due to productivity improvements,
lower restructuring costs and lower commodity costs partially offset by lower
organic volume.

Hubbell`s Power segment net sales decreased by 12% compared to the first quarter
of 2009 due to the impact of lower demand for both distribution and transmission
products as well as lower storm related shipments. Operating income decreased to
$25.6 million compared to $29.6 million reported in the first quarter of 2009.
The decrease in operating income was primarily due to unfavorable price and
commodity costs and lower volume partially offset by productivity improvements.

SUMMARY & OUTLOOK

Mr. Powers concluded "Non-residential construction is our largest end market,
and some market indicators have weakened since the beginning of the year.
However, based on our order volume, both in the quarter where we built backlog
as well as what we have seen to date in April; we continue to expect a decline
in the 20% range, consistent with our original outlook. The outlook for
residential construction and utility spending has moderated slightly, while our
expectations in our industrial markets have strengthened. The net result is our
continued expectation for volume in 2010 to be comparable to 2009. Looking
ahead, we will continue to manage those things which are in our control;
productivity programs to drive margin improvement and careful oversight of
commodity cost in relation to pricing. We expect the pricing environment to
remain competitive and for the net impact of commodity costs and pricing to be
slightly negative for 2010. We intend to meet that challenge by increasing our
productivity efforts and driving cost containment initiatives throughout the
Company. I believe that our demonstrated capability to deliver strong results in
challenging end markets will continue to be realized. In addition, our balance
sheet is as strong as ever and we expect to continue to evaluate and pursue
strategic acquisitions to add to our portfolio."

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; anticipated
benefit from the Federal stimulus package; expected benefits of process
improvement and other lean initiatives; the expected benefit and effect of the
business information system initiative and streamlining 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", "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, 2009.

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 2009 revenues of $2.4
billion, Hubbell Incorporated operates manufacturing facilities in the United
States, Canada, Switzerland, Puerto Rico, Mexico, the People`s Republic of
China, Italy, the United Kingdom, Brazil and Australia. Hubbell also
participates in joint ventures in Taiwan and Hong Kong, and maintains sales
offices in Singapore, the People`s Republic of China, Mexico, South Korea, and
the Middle East. The corporate headquarters is located in Orange, CT.

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

Three Months Ended
March 31
(UNAUDITED) (UNAUDITED)
2010 2009

Net Sales $ 570.5 $ 585.6
Cost of Goods sold 394.8 418.6
Gross Profit 175.7 167.0
Selling & administrative expenses 110.0 109.7
Total Operating Income 65.7 57.3
Operating income as of % of Net Sales 11.5% 9.8%
Interest expense, net (7.6) (7.7)
Other (expense) income, net (0.5) 0.2
Income Before Income Taxes 57.6 49.8
Provision for income taxes 18.6 15.7
Net income $ 39.0 $ 34.1
Less: Net income attributable to
Noncontrolling interest 0.4 0.3
Net income attributable to Hubbell $ 38.6 $ 33.8

Earnings Per Share:
Basic $ 0.64 $ 0.60
Diluted $ 0.64 $ 0.60

HUBBELL INCORPORATED
Condensed Consolidated Balance Sheet
(in millions)

(UNAUDITED)
March 31, 2010 December 31, 2009
ASSETS

Cash and cash equivalents $ 264.7 $ 258.5
Accounts receivable, net 348.4 310.1
Inventories, net 270.4 263.5
Deferred taxes and other 88.4 85.8

TOTAL CURRENT ASSETS 971.9 917.9

Property, plant and equipment, net 366.0 368.8
Investments 29.2 28.1
Goodwill 741.2 743.7
Intangible assets and other 401.1 406.0

TOTAL ASSETS $ 2,509.4 $ 2,464.5

LIABILITIES AND EQUITY

Short-term debt $ 3.4 $ -
Accounts payable 149.9 130.8
Accrued salaries, wages and employee benefits 45.3 62.8
Accrued insurance 59.7 49.3
Dividends payable 21.6 20.9
Other accrued liabilities 152.3 154.7

TOTAL CURRENT LIABILITIES 432.2 418.5

Long-Term debt 499.8 497.2
Other non-current liabilities 247.6 246.8

TOTAL LIABILITIES 1,179.6 1,162.5

Hubbell Shareholders' Equity 1,325.9 1,298.2
Noncontrolling Interest 3.9 3.8
TOTAL EQUITY 1,329.8 1,302.0

TOTAL LIABILITIES AND EQUITY $ 2,509.4 $ 2,464.5

HUBBELL INCORPORATED
Condensed Consolidated Statement of Cash Flows
(in millions)

Three Months Ended March 31
(UNAUDITED) (UNAUDITED)
2010 2009

Cash Flows From Operating Activities
Net Income attributable to Hubbell $ 38.6 $ 33.8
Depreciation and amortization 18.3 17.1
Stock-based compensation expense 2.2 2.0
Deferred income taxes 2.7 3.3
Changes in working capital (33.0 ) (9.3 )
Contributions to defined benefit pension plans (0.9 ) (0.8 )
Other, net (4.0 ) 0.5

Net cash provided by operating activities 23.9 46.6

Cash Flows From Investing Activities
Capital expenditures (11.1 ) (8.0 )
Acquisition of businesses, net of cash acquired - (0.3 )
Net change in investments (0.5 ) (2.2 )
Other, net 1.1 0.3

Net cash used in investing activities (10.5 ) (10.2 )

Cash Flows From Financing Activities
Short-term debt borrowings 3.4 -
Payment of dividends (20.9 ) (19.7 )
Proceeds from exercise of stock options 9.6 -
Other, net 1.7 -

Net cash used in financing activities (6.2 ) (19.7 )

Effect of foreign exchange rate changes on cash and cash equivalents (1.0 ) (2.9 )

Increase in cash and cash equivalents 6.2 13.8
Cash and cash equivalents
Beginning of period 258.5 178.2
End of period $ 264.7 $ 192.0

HUBBELL INCORPORATED
Ratios of Total Debt to Total Capital and Net Debt to Total Capital
(in millions)

March 31, December 31,
2010 2009
Total Debt $ 503.2 $ 497.2
Total Hubbell's Shareholders' Equity 1,325.9 1,298.2
Total Capital $ 1,829.1 $ 1,795.4

Total Debt to Total Capital 28 % 28 %

Total Debt $ 503.2 $ 497.2
Less: Cash and cash equivalents 264.7 258.5
Investments 29.2 28.1
Net Debt $ 209.3 $ 210.6

Net Debt to Total Capital 11 % 12 %

Free Cash Flow Reconciliation

Three Months Ended March 31,
2010 2009

Net cash provided by operating activities $ 23.9 $ 46.6
Less: Capital Expenditures (11.1 ) (8.0 )
Free cash flow $ 12.8 $ 38.6

HUBBELL INCORPORATED
Segment Information
(in millions)

Three Months Ended March 31
(UNAUDITED) (UNAUDITED)
2010 2009

Net Sales
Electrical $ 409.3 $ 402.5
Power 161.2 183.1
Total Net Sales $ 570.5 $ 585.6

Operating Income
Electrical $ 40.1 $ 27.7
Power 25.6 29.6
Total Operating Income $ 65.7 $ 57.3

Operating Income as a % of Net Sales
Electrical 9.8 % 6.9 %
Power 15.9 % 16.2 %
Total 11.5 % 9.8 %

HUBBELL INCORPORATED
Earnings Per Share Calculation
(in millions, except per share amounts)

Three Months Ended
March 31
2010 2009
Numerator:
Net income attributable to Hubbell $ 38.6 $ 33.8
Less: Earnings allocated to participating securities 0.2 0.1
Net income available to common shareholders $ 38.4 $ 33.7

Denominator:
Average number of common shares outstanding 59.7 56.2
Potential dilutive shares 0.3 0.1
Average number of diluted shares outstanding 60.0 56.3

Earnings per Share:
Basic $ 0.64 $ 0.60
Diluted $ 0.64 $ 0.60

Hubbell Incorporated
William R. Sperry, 203-799-4100

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