Hubbell Inc., Orange, Conn., reported first-quarter profit fell because of a lower level of sales than it expected in its electrical segment.
Net income for the first quarter was $28.8 million, down from $35 million, a year earlier. Sales in the quarter were $487.6 million or a 5 percent increase over sales of $465.2 million reported during last year’s first quarter.
“The quarter’s results were disappointing,” said Timothy H. Powers, chairman, president and chief executive officer. “Reducing our earnings was a lower level of sales than we expected in the electrical segment, specifically in our lighting business. While sales are marginally higher than last year, product pricing versus higher materials costs remained difficult in very competitive lighting markets. Weakness in nonresidential construction markets during the quarter intensified price competition and, with lower volume through our plants, lower overhead absorption resulted in reduced operating margins. Many of the same factors impacted our Raco operation.”
Sales for the electrical segment increased by 2 percent as reported year-over-year, but on a unit volume basis sales were about the same as last year. Lighting fixtures and rough-in electrical products showed the least favorable comparisons, while harsh and hazardous product sales grew by double digits.