Hubbell Inc., Orange, Conn., reported net sales in the fourth quarter of 2008 were $652.1 million, an increase of 6 percent from the $614.7 million reported for the same period in 2007. Net income in the fourth quarter of 2008 was $46.3 million compared to $48.0 million reported in the fourth quarter of 2007.
In the fourth quarter of 2008, the company invested approximately $56 million to acquire Varon Lighting Group LLC, which has become part of Hubbell's Lighting business. Varon provides energy-efficient lighting fixtures and controls designed for indoor commercial and industrial lighting retrofits, as well as outdoor new and retrofit pedestrian-scale lighting applications.
Electrical segment net sales increased 1 percent year-over-year as selling price increases, acquisitions and strong shipments of high-voltage products were largely offset by weaker residential product sales and unfavorable foreign currency translation. Electrical segment operating income decreased to $44.7 million compared to $45.4 million reported in the fourth quarter of 2007.
In 2009, Powers said the company anticipates significant recessionary conditions in the U.S. and a slowdown in overall global demand. "Hubbell's largest served market, non-residential construction, is forecasted to be down significantly. The residential construction market is still contracting and will likely be down at comparable percentages to 2008. The utility market is expected to be lower, with many utility companies delaying capital spending on transmission and substation related projects while distribution investments will continue to be hampered by the residential market decline. We expect the industrial markets to be weaker due to a slowdown in manufacturing production. Finally, while we would anticipate some benefit from any expected energy-related stimulus package from the new administration, the timing and magnitude of such benefits remain to be seen."