The 2020 Mid-Year Economic Update_long

Thomas & Betts Third-Quarter Sales Decline 27%

Results for the electrical manufacturer reflect lower global demand in construction, industrial maintenance and power distribution markets.

Electrical manufacturer Thomas & Betts Corp. (NYSE: TNB), Memphis, TN, reported sales of $485.1 million for the third quarter 2009, down 27.1% from a year ago. Profit declined 48.4% to $32.1 million.

Year to date, sales were $1.41 billion, down 25.8%. Profit fell 67.5% to $80.8 million.

Year-over-year sales decreases primarily reflect continuing weakness in global demand for electrical products used in construction, industrial maintenance and power distribution as well as commercial heating products. The stronger U.S. dollar negatively impacted sales by approximately $19 million, or 3%, in the quarter.

Segment results
Third quarter Electrical segment sales were $410.9 million, down 29% year over year. Foreign currency contributed $19 million, or 3%, to the sales decline. Volumes were lower across all market segments and geographies. Electrical segment earnings were $78.3 million or 19% of sales in the quarter.

Steel Structures segment sales were $50.9 million in the third quarter, down 8.6%. Segment earnings improved to $10.1 million compared to $9.0 million last year, largely due to favorable project mix.

HVAC segment sales declined to $23.3 million, 25.3% lower than the prior year. HVAC earnings were $3.2 million down from $5.3 million in third quarter 2008.

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