Hubbell Inc. (NYSE:HUBB) Q2 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 10:00 am ET
Thank you for standing by, and welcome to the Second Quarter 2020 Results Call. [Operator Instructions]
I would now like to hand the conference over to your speaker today, Dan Innamorato. Thank you. Please go ahead, sir.
Thanks, operator. Good morning, everyone, and thank you for joining us. I'm joined today by our Chairman and CEO, Dave Nord; our President and Chief Operating Officer, Gerben Bakker; and our Executive Vice President and CFO, Bill Sperry. I will announce the second quarter results for 2020 this morning. The press release and slides are posted to the Investors section of our website at www.hubbell.com. Please note that our comments this morning may include statements related to the expected future results of the company and are forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Therefore, please note the discussion of forward-looking statements in our press release and considered incorporated by reference into this call. In addition, comments may also include non-GAAP financial measures. Those measures are reconciled to the comparable GAAP measures and are included in the press release and the slides.
Now let me turn the call over to Dave.
David G. Nord
All right. Thanks, Dan, and good morning, everybody. Thanks for joining us to discuss our second quarter results. I appreciate everybody taking the time. It's certainly been an interesting 90-plus days since we were last in front of you. And I think there's a lot to cover today. So I'll start my comments on slide three with a brief summary of what I think is another strong quarter of operating performance and free cash flow generation for us. We clearly saw the impact of COVID-19 on the economy, our end markets and our operations, but we continue to focus on what we can control, and we effectively navigated through a quarter of significant volume declines, down 21%, but still ended up with margin expansion and very robust free cash flow. You'll note that our free cash flow is, at this point in the year, more than halfway to our full year goal, which those of you following us, know that, that's not our typical trend. And Bill will talk more about that in a little while. Our operational transformation continues to provide benefits with attractive savings on the investments we've been making in our footprint optimization. And we continue to execute on price cost and we were proactive in managing our cost structure in the second quarter.
Looking ahead, while things continue to show signs of improvement, we continue to see some uncertainty in our volume outlook for the second half, with the timing and magnitude of recovery still to be determined. But we think our utility-facing end markets will remain resilient as critical grid infrastructure needs to be upgraded and maintained. And electrical markets, while challenging, continued to improve. And overall, despite continued market volatility, we're well prepared to manage through a range of scenarios. You'll recall, we walked you through our recession playbook last quarter and