Hubbell Inc. (NASDAQ:HUBA) Q1 2015 Earnings Conference Call - Final Transcript

Apr 23, 2015 • 10:00 am ET

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Hubbell Inc. (NASDAQ:HUBA) Q1 2015 Earnings Conference Call - Final Transcript

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Executive
Dave Nord

Good morning thanks, Maria. Let me start with little housekeeping first. You obviously have heard a new voice on the call this morning in Maria Lee. Most of you are probably aware but if not Jim Farrell has been a long time involved in our Investor Relations function is moving on to a significant finance role in the operations.

I've worked with Jim, as long as I've been with Hubble and I have seen him, as he's progressed through his career and he's been an integral part of the evolution that I hope you've all experienced in not just the performance of Hubble but specifically around our IR agenda and above the quantity and hopefully quantity and transparency of that communication, more to be done, we'll leave that up to Maria, but I just want to acknowledge Jim, Jim is thankful that he's part of our transition, he's sitting in the room today, so feel free to ask him any of the tough questions that you might have to Maria.

But we are fortunate to have someone like Maria Lee to join the team certainly someone who is very familiar and comfortable around the industrial space and specifically known to some or many of you. So we are confident in what Maria brings to the team and will add as we continue to advance our shareholder communication agenda, so thanks Jim, welcome Maria.

Now on to the business of the call, the first quarter results I am obviously pleased to report a very solid start to the year in the first quarter, 7% sales growth with a nice balance between organic and acquisitions with offset by a little bit of foreign currency headwind. The end markets performed largely as we expected, notably some good strength in the non-residential construction partially offset by the weakness that we expect and maybe coming a little sooner on the energy related business. I won't still boast on there but a particular note for me is it's the good performance on our lighting business with our core business within lighting both commercial industrial as well as residential reporting double-digit sales growth.

Our industrial business is up slightly, little bit of weakness that we're seeing now, we'll talk more about that later. And as you saw the power business up very nicely in the first quarter. One negative is around Harsh & Hazardous is particular we knew that was going to be a challenge going in into the year and that certainly is turning out to be the case. But all that considered 7% sales growth is very good from my standpoint as a start to the year.

Our margins are 13%, again nice performance certainly we would have in a normal environment expected that to be closer to 14% with the incremental volume but that 13% on a reported basis includes a half a point of restructuring related costs and some of the unfavorable mix particularly associated with the Harsh & Hazardous decline and some of