Hubbell Inc. (NYSE: HUBA, HUBB), Orange, CT, reported sales for the third quarter decreased 19% from the prior year period to $593.9 million. Profit was $57.3 million, down 14%.
For the first nine months of 2009, sales were $1.76 billion, a decrease of 14% compared to the same period last year. Profit decreased 26% to $130.5 million.
“Despite our sales being down 19%, operating margin increased by 130 basis points when compared to the third quarter of 2008. The increase in margin was due to the benefits of our productivity programs, including cost savings associated with recent streamlining efforts, and favorable commodity costs,” said Timothy H. Power, president and CEO. “We also were successful in continuing to lower our inventory levels in the quarter resulting in an approximately $32 million dollar reduction since the second quarter.”
Electrical segment sales decreased 21% year-over-year with both electrical systems products and lighting products declining. Operating income decreased 25% to $51.5 million, or 12.4% of net sales.
The Power segment reported a 15% decrease in sales compared to the third quarter of 2008 as weaker underlying demand, including lower storm related shipments, was partially offset by the impact of acquisitions. Acquisitions added approximately 7% while lower storm shipments resulted in an approximately 6% reduction in net sales. Operating income increased 15% to $39.8 million.
