Shore power and electrical components manufacturer Hubbell posted an increase of 11% in net income for the first quarter of fiscal 2023, taking in $181.9 million versus $102.5 million in the 2022 quarter. Net sales were $1.285 billion, compared with $1.156 billion last year.
“Hubbell is off to a strong start in 2023,” Gerben Bakker, chairman, president and CEO, said in a statement. “Grid modernization and electrification continued to drive robust demand for Hubbell products and solutions, while our leading quality and service levels supported accelerated price realization in the quarter.”
The company doesn’t break out the marine category in its reporting, but in electrical solutions, net sales for the quarter were $504 million, which was flat compared with the year-prior quarter. Organic net sales were down 2.5%, while acquisitions added 3% and foreign exchange created a decrease of less than 1%.
Operating income for the electric segment was $71 million, or 14.2% of net sales, compared with $55 million, or 10.9% of net sales, for the prior year. Adjusted operating income was $76 million, or 15% of net sales, compared with $58 million, or 11.6% of net sales, in 2022. Increases in operating income and operating margin were driven primarily by price realization, lower raw materials costs, and improved productivity, which was partially offset by non-material cost inflation and increased investment.
Net cash provided by operating activities from continuing operations was $114 million in the first quarter versus net cash used by operating activities of $14 million in the comparable period of 2022. Free cash flow was an $80 million source of funds in the quarter versus a $36 million use of cash last year.
