IMAGE COURTESY HUBBELLElectrical components manufacturer Hubbell yesterday reported that second quarter net sales increased from $1.37 billion to $1.45 billion year-over-year, and that adjusted operating margin increased to 22.8%. Gross profit increased from $496.2 million to $508.7 million, and operating income grew from $287.8 million to $301.2 million.
Hubbell said changes in operating income and operating margin were primarily due to the impact of acquisitions, favorable price and productivity in excess of cost inflation, volume declines in enclosures products primarily driven by telecom markets, and higher restructuring and related investment.
“Hubbell delivered solid performance in the second quarter,” said president and CEO Gerben Bakker said in a statement. “Operational execution was strong, and the company returned to adjusted operating margin expansion in the quarter.
“Second quarter performance was highlighted by strong organic growth and margin expansion in our electrical solutions segment,” he added. “Robust project activity drove strong sales growth in datacenters and renewables as our vertical market strategy continues to gain traction and differentiate Hubbell with our customers.”
The electrical solutions segment, which includes marine products, reported a $9 million year-over-year decrease in net sales to $526 million during the quarter. Organic net sales in the segment increased 7% in the quarter, and segment operating income increased $17 million compared with the year-ago quarter.
Hubbell anticipates full-year diluted earnings per share in the range of $14.30 to $14.60 and adjusted diluted earnings per share in the range of $16.20 to $16.50. Adjusted EPS excludes amortization of acquisition-related intangible assets, which the company expects to be approximately $1.60 for the full year, a $0.22 loss on disposition of the residential lighting business, and $0.10 of transaction, integration and separation costs.
