2002 2nd-Quarter Earnings Still Down

Aug. 16, 2002
Second-quarter earnings reports are in, and the results are not as many companies had hoped. Some companies like Hubbell Inc. did see some increase. Here's

Second-quarter earnings reports are in, and the results are not as many companies had hoped. Some companies like Hubbell Inc. did see some increase. Here's a sampling of these reports.

Hubbell reports higher second-quarter sales and profit

Hubbell Inc., Orange, Conn., said its second-quarter profit and revenue rose as it countered a sluggish economy with cost restructuring. The manufacturer said its income rose 41 percent to $30.8 million compared to $21.8 million a year ago. Excluding an 8 cents per share tax gain and a 1 cent cost for restructuring, Hubbell said its earnings rose 10 percent to 44 cents a share from 40 cents a share a year ago. Hubbell's second-quarter revenue increased 21 percent to $414.1 million from $341.2 million a year ago. The figures included the acquisition of LCA Group Inc, the domestic lighting division of U.S. Industries Inc.

Sales and operating profit totals in the second quarter for each of Hubbell's three business segments reflect continued slow demand across all segments. The greatest effect was felt in the Industrial Technology segment with its exposure to basic industry. For the electrical segment, second-quarter 2002 sales increased by 39 percent and operating profit by more than 41 percent with the addition of the LCA lighting operations. Apart from the financial benefit, this acquisition immediately broadened Hubbell's participation in the full range of lighting fixture markets: industrial, commercial, residential, and specialty.

Another strong positive in the quarter was the performance of Hubbell Electrical Products. Market share gains and profitability improvement programs generated substantial increases in sales and operating profit. The Power Systems segment reported a 6 percent decline in sales but a 29 percent increase in operating profit as its internal cost reduction and productivity programs gained traction.

American Power Conversion earnings fall

American Power Conversion Corp. (APC), West Kingston, R.I., said its second-quarter earnings fell on weakness in its small systems business. Net income at APC dropped to $29.6 million from $34.8 million a year earlier. Sales fell 13 percent to $308.2 million from $356 million. An 11 percent gain in revenues from Latin America was offset by a drop in other parts of the world. However, APC's Chief Executive Rodger Dowdell Jr. said that revenues increased sequentially for the first time in a year. “While we are cautiously optimistic about current business trends, the demand environment continues to be quite challenging and uncertain,” Dowdell said.

Magnetek posts loss, cites telecom markets

Magnetek Inc., Los Angeles, posted a narrower fourth quarter loss from continuing operations compared with a year-earlier profit, reflecting telecommunications markets. The Los Angeles company posted a loss of $440,000 for the quarter ended June 30, compared with $2.7 million a year earlier. Including loss-making operations that were sold in 2001, it posted a year-earlier loss of $3.2 million. The company warned last month that its earnings would fall short of the Wall Street estimate. At the time, Magnetek's Chairman and CEO Andrew Galef said the company's fourth quarter was impacted by continued weakness in the telecom power systems business. “We saw signs of improvement early in the quarter, but uncertainties in the telecom industry intensified in June, resulting in delays in equipment deliveries and postponements of installation work. However, even with an essentially flat fourth quarter, our market diversity — primarily in consumer power electronics and industrial controls — enabled us to remain profitable in fiscal 2002.”

Belden reports second-quarter earnings

Belden Inc., St. Louis, announced that revenue for the second quarter ended June 30 was $207.7 million, off 18.3 percent compared with revenue of $254.2 million in the second quarter a year ago. Net income for the quarter was $4.7 million compared with $9.6 million in the second quarter of 2001. Revenues of the Electronics Segment were $148.8 million in the second quarter, a decline of 12.7 percent from revenues of $170.3 million in the second quarter of 2001. Sequentially, revenue of the Electronics Segment increased 6.8 percent. Operating earnings were $14.9 million, or 10 percent of sales in the quarter, compared with operating earnings of $19 million or 11.1 percent in the year-ago quarter.