Skip to content
AnalystLens

Hubbell Annual Report, Year Ended Dec 31, 1998

Filing Date
Filed March 24, 1999
Period End
December 31, 1998
Security
HUBB
In the record · 2016–202610-K1110-Q338-K110

HUBB filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 110 current reports (8-K) between 2016 and 2026.

  1. Restructuring8-K · Jan ’17Jan ’17
  2. Leadership change8-K · Mar ’19Mar ’19
  3. Material agreement8-K · Mar ’21Mar ’21
  4. Material agreement8-K · Nov ’25Nov ’25

01—Abstract

Summary

Summary of the 10-K filed March 24, 1999. Cited figures are marked; the original filing is the authoritative source.

Hubbell Incorporated reported net sales of $1,424.6 milliona for fiscal 1998, up from $1,378.8 million in 1997, with net income of $169.4 million ($2.50 diluted EPS) compared with $130.3 million ($1.89 diluted EPS) in 1997, which included a $52.0 million special charge.

The filing states that consolidated net sales increased 3% on improved shipments and acquisitions, offset by weaker telephone company orders, weak international markets, a strong U.S. dollar and increased price competition. Operating income rose to $226.1 millionb from $171.6 million. Segment results were mixed: Electrical sales rose 4% to $808.4 million, Power sales rose 2% to $393.1 million, Telecommunications sales rose 5% to $149.5 million, and the Other Industry segment sales fell 1% to $73.6 million.

The balance sheet remained solid, with working capital of $219.8 millionc, a current ratio of 1.6 to 1, and cash of $30.1 million at year-end. Total borrowings of $212.9 million, consisting of commercial paper and long-term debt, were 25.3% of shareholders' equity, up from 12.0% in 1997, after the company repurchased $82.8 million of stock and acquired three lighting businesses and Siescor Technologies for $78.4 million in cash. Management expects capital expenditures of approximately $70.0 million annually over the next three years and says available cash, credit facilities and internally generated funds should be sufficient to meet its needs.

The filing also discloses a streamlining program, primarily in the Electrical and Power segments, that is expected to relocate about 2,000 jobs and close five facilities, with annual savings of up to $25.0 milliond after roughly a three-year implementation. The company reports a Year 2000 remediation plan with estimated expenditures of $20 million, about 70% spent to date, and states that no Year 2000 compliance issues with its products have been identified.

02—Key points

Key Highlights

  1. Net sales rose to $1,424.6 million in 1998 from $1,378.8 million in 1997, and net income rose to $169.4 million from $130.3 million.
  2. Diluted EPS was $2.50 in 1998 versus $1.89 in 1997, which was reduced by a $52.0 million special charge ($.47 per share).
  3. Operating income increased to $226.1 million from $171.6 million, and the return on sales was 11.9%.
  4. Electrical Segment sales were $808.4 million, up 4%, and the Power Segment was $393.1 million, up 2%.
  5. The company acquired three lighting businesses and Siescor Technologies for $78.4 million in cash and repurchased $82.8 million of its common stock.
  6. Total borrowings of $212.9 million represented 25.3% of shareholders' equity, compared with 12.0% in 1997.
  7. A streamlining program is expected to relocate about 2,000 jobs, close five facilities and save up to $25.0 million annually, and Year 2000 remediation is estimated at $20 million.

03—Questions

Frequently Asked Questions

  1. How did Hubbell perform financially in 1998?

    Net sales increased 3% to $1,424.6 million and net income rose to $169.4 million, or $2.50 per diluted share, from $130.3 million, or $1.89 per diluted share, in 1997. The 1997 results included a $52.0 million special charge. Operating income increased to $226.1 million from $171.6 million.

  2. What drove the sales growth and what headwinds did the company face?

    The filing attributes sales growth to improved shipments and acquisitions. Offsetting factors included a decline in orders from telephone companies, weak international markets, a strong U.S. dollar and increased price competition across all businesses. Net operating income increased 1%, as productivity gains offset lower sales pricing.

  3. How strong is the company's balance sheet and liquidity?

    At December 31, 1998, working capital was $219.8 million and the current ratio was 1.6 to 1. Cash and temporary cash investments were $30.1 million. Commercial paper and long-term debt totaled $212.9 million, or 25.3% of shareholders' equity, up from 12.0% in 1997. Management believes available cash, credit facilities and internally generated funds are sufficient to meet its needs.

  4. What is the company's capital allocation outlook?

    Capital expenditures were $86.1 million in 1998, and the company anticipates they will approximate $70.0 million annually over the next three years. The company repurchased $82.8 million of stock in 1998, continued its thirty-eighth consecutive annual dividend increase, and actively seeks acquisitions.

  5. What is the streamlining program and what savings does it promise?

    The streamlining program, primarily within the Electrical and Power segments, will relocate about 2,000 jobs and close five facilities. Annual savings and cost avoidance could be as much as $25.0 million after an approximate three-year implementation period. The company had expended $12.0 million in 1998 and $12.9 million in 1997 on the program, and the remaining reserve at year-end 1998 was $24.9 million in accrued charges.

04—Continue

← View all 10-K filings