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Thomas & Betts Corp., Memphis, TN, reported sales of $461.0 million for the second quarter 2009, down 28.1% year over year. Profit declined 84.7% to $22.7 million.
"2009 has proven to be considerably more challenging than anticipated, with continued pressure in all of our key markets," CEO Dominic J. Pileggi said. "The lack of any meaningful improvement in credit availability has crippled capital investment in the global industrial base and severely curtailed spending on construction projects. In addition, we have not yet seen any notable impact from government-initiated stimulus spending.
"The result is an unprecedented decrease in demand. While we have responded aggressively by reducing headcount, freezing wages and cutting discretionary spending, it has not been possible to fully offset the earnings impact of such a significant drop in sales volume."
Year-to-date, sales were $920.8 million, down 25.5% from the same period a year ago. Profit declined 73.8% to $48.7 million.
In the company's Electrical segment, second quarter sales were $383.4 million, down 30.4% year over year. Foreign currency contributed approximately $36 million, or 7%, to the sales decline. Volumes were lower across all market segments and geographies.
Second quarter 2009 Steel Structures segment sales were $55.0 million, down slightly from second quarter 2008. Segment earnings improved to $12.1 million.
HVAC segment sales declined to $22.7 million from $34.1 million in the prior year. HVAC earnings were $2.6 million.
Thomas & Betts Corporation is a manufacturer of electrical components used in industrial, commercial, communications and utility markets.