Profile: Thomas & Betts Corporation (TNB.N)

Thomas & Betts Corporation (Thomas & Betts), incorporated in 1917, is a designer and manufacturer of electrical components used in industrial, construction, retail, utility and communications markets. The Company also produces highly engineered steel structures, used primarily for utility transmission and commercial heating units. It has operations in approximately 20 countries. Manufacturing, marketing and sales activities are concentrated primarily in North America and Europe. Thomas & Betts sells its products through three channels: electrical, utility, telephone, cable, and heating, ventilation and air-conditioning distributors; mass merchandisers, catalog merchandisers and home improvement centers, and directly to original equipment manufacturers (OEM’s), utilities and certain end users. It classifies its products into three segments: Electrical, Steel Structures, and Heating, Ventilation and Air-Conditioning (HVAC).

In January 2008, the Company acquired The Homac Manufacturing Company, a privately held manufacturer of components used in utility distribution and substation markets, as well as industrial and telecommunications markets. In January 2008, it also acquired Boreal Braidings Inc., a privately held Canadian manufacturer of flexible connectors.

Electrical Segment

The Electrical segment designs, manufactures and markets thousands of different connectors, components and other products for electrical, utility and communications applications. Products in the Electrical segment include fittings and accessories; fastening products, such as plastic and metallic ties for bundling wire, and flexible tubing; connectors, such as compression and mechanical connectors for high-current power and grounding applications; indoor and outdoor switch and outlet boxes, covers and accessories; floor boxes; metal framing used as structural supports for conduits, cable tray and electrical enclosures; emergency and hazardous lighting; utility distribution connectors and switchgear; power quality equipment and services; community access television (CATV) drop hardware; radio frequency (RF) connectors; aerial, pole, pedestal and buried splice enclosures; encapsulation and sheath repair systems, and other products, including insulation products, wire markers, and application tooling products. These products are sold under a variety of brand names, such as Carlon, Color Keyed, Cyberex, Elastimold, Emergi-Lite, Furse, Iberville, Joslyn, Kindorf, Red-Dot, Sta-Kon, Steel City, Super Strut, Ty-Rap, LRC, Diamond, Kold-N-Klose and Snap-N-Seal.

The Electrical segment’s markets include industrial maintenance, repair and operations (MRO), and OEM’s, construction, retail, utility and communications companies. This segment’s sales are concentrated primarily in North America and Europe. During the year ended December 31, 2008, the Electrical segment’s revenue totaled 85% of the consolidated net sales.

Steel Structures Segment

The Steel Structures segment designs, manufactures and markets highly engineered tubular steel transmission and distribution poles. Thomas & Betts also markets lattice steel transmission towers for North American power and telecommunications companies. These products are primarily sold to end users, such as investor-owned utilities; cooperatives, which purchase power from utilities and manage its distribution to end users, and municipal utilities. These products are marketed primarily under the Meyer and Thomas & Betts brand names. During 2008, the Steel Structures segment’s revenue totaled 9.4% of the consolidated net sales.

HVAC Segment

The HVAC segment designs, manufactures and markets heating and ventilation products for commercial and industrial buildings. Products in this segment include gas, oil and electric unit heaters; gas-fired duct furnaces; indirect and direct gas-fired make-up air; infrared heaters, and evaporative cooling and heat recovery products. These products are sold primarily under the Reznor brand name through HVAC, mechanical and refrigeration distributors throughout North America and Europe. During 2008, the HVAC segment’s revenue totaled 5.6% of the consolidated net sales.