Hubbell(US:HUBB)2022-04-26 18:14Financial Data and Key Metrics Changes - Sales increased by 21% to $1.16 billion, driven by organic growth and price increases [13] - Operating profit grew by 22% to $160 million, with a margin expansion of 20 basis points to 13.9% [15] - Earnings per share rose by 30% year-over-year to $2.12, supported by operating profit growth and other income [16] Business Line Data and Key Metrics Changes - The Electrical segment saw a 19% growth, with 10 points from price and 9 points from volume [17] - The Utility Solutions segment experienced a 22% growth, with 13 points from price and 10 points from volume [19] - The residential side of the Electrical segment faced challenges due to tough comparisons from the previous year [18] Market Data and Key Metrics Changes - Orders increased by 25%, indicating strong demand and backlog growth despite a 21% increase in shipments [15] - The utility market remains robust, driven by infrastructure spending and grid modernization initiatives [26] Company Strategy and Development Direction - The company is focused on capital deployment, returning cash to shareholders through share repurchase [8] - There is an emphasis on operational efficiency and price traction to navigate supply chain challenges [6] - The company aims to continue executing its bolt-on acquisition strategy to generate attractive returns [8] Management's Comments on Operating Environment and Future Outlook - The macroeconomic environment remains dynamic, but the company is confident in its strong order book and operational discipline [6] - The full-year outlook has been raised to reflect mid-teens adjusted earnings per share growth [7] - Management acknowledges ongoing supply chain headwinds but believes in their ability to manage through these challenges [6] Other Important Information - Hubbell was recognized as one of the World's Most Ethical Companies for the second consecutive year [9] - The company released its second annual sustainability report, highlighting progress in ESG initiatives [9] Q&A Session Summary Question: Volume dynamics in the utility market - Management noted strong demand in the utility market, with orders exceeding shipments and a growing backlog [26] Question: Pressure on T&D spending due to inflation - Management acknowledged the importance of monitoring consumer pressure but indicated no current evidence of impact on demand [29] Question: Second quarter performance expectations - Management anticipates momentum in sales but expects a more muted seasonal pickup compared to previous years [33][34] Question: Pricing strategy amid inflation - Management emphasized the need for continued pricing actions to offset ongoing inflation across various costs [66] Question: Backlog management and future orders - Management indicated that while current order rates are high, they expect normalization as supply chain issues are resolved [56] Question: Growth outlook for the utility segment - Management expressed optimism about the utility segment's growth potential, driven by grid modernization and automation initiatives [58][59]