PHOTO COURTESY HUBBELLElectrical products manufacturer Hubbell reported a 9% increase in net sales in the first quarter and a 2% gain in organic net sales.
“Hubbell is off to a solid start in 2024,” chairman, president and CEO Gerben Bakker said in a statement. “Operating performance was highlighted by strong organic growth in our Electrical Solutions segment, where electrification drove broad-based strength across industrial markets, and continued execution on our segment unification strategy drove operating profit growth and margin expansion.
“Operationally, price/cost/productivity was positive in both segments,” he added. “Price traction is healthy, supported by our strong positions and leading service levels. As anticipated, investments in long-term growth and productivity initiatives impacted year-over-year operating margins in the first quarter, including increased restructuring and related investment.”
Hubbell doesn’t break out marine segment performance separately, but electrical solutions had net sales of $505 million in the first quarter, compared with $504 million in the prior-year quarter. Organic net sales increased 6% in the quarter, while a divestiture reduced segment net sales by 6%. Segment operating income was $71 million, or 14.1% of net sales, nearly identical to 2023.
Adjusted operating income was $80 million, or 15.8% of net sales, compared with $76 million and 15% of net sales in 2023. Changes in income were driven primarily by volume growth, favorable price and productivity in excess of cost inflation.
In December, Hubbell entered into a definitive agreement to to sell its residential lighting business for a cash purchase price of $131 million. The transaction closed in the first quarter, with the company recording a pretax loss of $5.3 million.
