Canadian Electrical Wholesaler

May 4, 2021

Hubbell logoHubbell Incorporated reported operating results for the first quarter ended March 31, 2021.

"Hubbell achieved year-over-year earnings growth and adjusted operating margin expansion in the first quarter," said Gerben Bakker, President and Chief Executive Officer. "We continue to see improvement in demand across each of our end markets, reflected in sequential sales growth in the quarter, as well as strengthening orders across both segments. In Utility Solutions, renewables projects and grid modernization initiatives in electrical transmission and distribution markets continue to drive strong demand for T&D Components. While Communications & Controls deployments remained affected by project delays as a result of the COVID-19 pandemic, we saw significant order growth in AMI and meters during the first quarter, supporting our expectations for a return to growth over the balance of the full year. In Electrical Solutions, markets continue to steadily improve. Non-residential markets remained stable in the quarter, while light industrial verticals strengthened, driving increased demand for our Connectors & Grounding and Wiring Systems products."

“Operationally, our prior investments in restructuring initiatives are producing sustainable productivity savings and contributing to adjusted operating margin expansion. We also continue to actively manage our cost structure and benefited from lower year-over-year operating expenses in the quarter. While we achieved positive price realization in the quarter, these tailwinds were more than offset by inflationary pressures in commodities and freight."

Mr. Bakker concluded, “Looking ahead, we are confident that our markets are rebounding and that Hubbell is successfully positioned to benefit from near-term economic recovery, as well as long-term electrification and grid modernization megatrends. While we expect inflationary pressures to persist, we have already taken significant pricing and productivity actions, with further initiatives set to be implemented. We also continue to actively manage our cost structure to drive operational efficiencies while ensuring Hubbell's continued ability to provide our customers with safe, reliable and efficient critical infrastructure solutions."

Certain terms used in this release, including "Net debt", "Free Cash Flow", "Organic net sales", "Organic growth", "Restructuring-related costs", "EBITDA", and certain "adjusted" measures, are defined under the section entitled "Non-GAAP Definitions." See page 8 for more information.


The comments and year-over-year comparisons in this segment review are based on first quarter results in 2021 and 2020.

Electrical Solutions segment net sales in the first quarter of 2021 was $546 million compared to $564 million reported in the first quarter of 2020. Organic sales declined 4% in the quarter while acquisitions contributed 1%. Operating income was $53.0 million, or 9.7% of net sales, compared to $52.5 million, or 9.3% of net sales in the same period of 2020. Adjusted operating income was $57.2 million, or 10.5% of net sales, in the first quarter of 2021 as compared to $57.3 million, or 10.2% of net sales in the same period of the prior year. Expanding operating margins were driven primarily by lower operating expenses and restructuring benefits, partially offset by lower volumes and headwinds from price/cost.

Utility Solutions segment net sales in the first quarter of 2021 increased 1.1% to $532 million compared to $527 million reported in the first quarter of 2020. Organic sales declined 4% in the quarter, with acquisitions contributing approximately 5% growth. Foreign exchange was a modest headwind. Utility T&D Components sales increased approximately 6% and Utility Communications and Controls sales declined by approximately 8%. Operating income was $65 million, or 12.1% of net sales, compared to $66 million, or 12.6% of net sales in the same period of 2020. Adjusted operating income was $83 million, or 15.5% of net sales, in the first quarter of 2021 as compared to $81 million, or 15.4% of net sales in the same period of the prior year. Increases in adjusted operating income and operating margin were primarily due to lower operating expenses, partially offset by lower organic volumes and headwinds from price/cost. Acquisitions contributed to increased operating profit in the quarter.

Adjusted first quarter 2021 results exclude $0.30 of amortization of acquisition-related intangible assets. Adjusted first quarter 2020 results exclude $0.27 of amortization of acquisition-related intangible assets.

Net cash provided by operating activities was $59 million in the first quarter of 2021 versus $108 million in the comparable period of 2020. Free cash flow was $39 million in the first quarter of 2021 versus $91 million reported in the comparable period of 2020 as the Company built working capital to serve strengthening market demand.


For the full year 2021, Hubbell anticipates sales growth of 8-10%, consisting of 5-7% organic growth and approximately 3% growth from acquisitions. By end market, the Company expects growth of 3-5% in Utility T&D Components, 4-6% in Utility Communications and Controls, 4-6% in Industrial, 3-5% in Residential, and (1-3%) in Non-Residential.

Hubbell anticipates 2021 earnings per diluted share in the range of $6.80-$7.20 and anticipates adjusted diluted earnings per share ("Adjusted EPS") in the range of $8.20-$8.60. Adjusted EPS excludes amortization of acquisition-related intangible assets, which the Company expects to be approximately $1.15 for the full year. Adjusted EPS also excludes a loss on the early extinguishment of debt from the 2022 Notes that were redeemed by the Company on April 2, 2021. The Company believes Adjusted EPS is a useful measure of underlying performance in light of our acquisition strategy.

The earnings per share and adjusted earnings per share ranges are based on an adjusted tax rate of 22-23% and continue to include approximately $0.30 per share of anticipated restructuring and related investment. The ranges also incorporate the impact of acquisitions, which we continue to anticipate adding approximately $0.25 to full year adjusted earnings. We continue to expect full year 2021 free cash flow conversion of approximately 110% on adjusted net income.

As previously announced, the Company successfully priced an offering of $300 million aggregate principal amount of 2.300% senior notes maturing in 2031. Net proceeds from the offering, together with cash on hand, were used to redeem in full all of the Company's outstanding 3.625% senior notes due 2022 in an aggregate principal amount of $300 million. Mr. Bakker commented, "This successful refinancing further bolsters our strong liquidity position, and enables Hubbell to continue investing in attractive growth opportunities to better serve our customers and add value for our shareholders."


Swati Vora-PatelBy Swati Vora-Patel

The electrical market is at the helm of innovation — from robotics and automation products that support advanced manufacturing to smart technology in homes and businesses, our industry leads innovation and competitiveness in Canada.

With advanced electrical and automation products shaping how we work, live and play, our industry is continually at the forefront of designing technologies that meet the needs of Canadians today.



Read More




David GordonBy David Gordon

Many talk about digitizing the channel and the emerging / present digitalization of the industry and then wonder why eCommerce as a percentage of distributor sales is not higher. One major reason is for many distributors their key customer is a contractor.

Much is being invested into the space. Everything from product content to website development / eCommerce platforms (and CMG is involved in some of this in supporting clients as well as involved with ETIM North America).


Read More


Investment in Building Construction - March 2021Total investment in building construction increased 5.9% to $18.6 billion in March, led by the residential sector. On a constant dollar basis (2012=100), investment in building construction was up 5.2% to $14.3 billion in March.

Residential investment continues to set records

Residential construction investment increased for the eleventh consecutive month, up 7.6% to $14.0 billion in March.



Read More


Michelle BraniganBy Michelle Branigan

A career seeker looking for a job. An HR manager looking to hire. Both are looking to fill a need quickly, effectively and as cost efficiently as possible. The career seeker needs to pay their rent or mortgage, and the HR manager knows the cost to the business of the wrong hire.

This is where the need for a well-written job description comes in. All too often job descriptions are outdated, listing requirements that are no longer valid, or failing to accurately portray a clear description of the role and employer expectations.

Read More



Carolina GalloBy Line Goyette

Among the recipients of the 2021 Clean50 Awards announced last month is Carolina Gallo, Vice President Government and Institutional Relations Canada, for Hitachi ABB Power Grids Canada. CEW reached out to Gallo, about the experience. But first, a little about the Clean50 Awards.

These annual awards recognize Canadian leaders in sustainability for their contributions over the prior two years. 



Read More


Changing Scene

  • Prev
Liteline has announced the promotion of Evan Sadofsky to Regional Sales Manager for Eastern Canada, ...
Electric Mobility Canada (EMC) and Electro-Federation Canada (EFC) have announced a new ...
Frank Dunnigan, CEO of Techspan Industries Inc., is pleased to announce the appointment of Sean ...
Deschenes Group Inc. (DGI) proudly announces the acquisition of Marcel Baril Ltée (Marcel Baril) ...
Electro-Federation Canada (EFC) represents electrical and automation manufacturers, distributors ...
LEDVANCE LLC, the maker of SYLVANIA general lighting in the US and Canada, announced Charlie Harte ...
Electro-Federation Canada (EFC) once again held its Annual General Meeting virtually this year on ...
It is with great emotion that after 40 years of combined service and leadership of Ideal Supply, ...
Managing change requires a set of soft skills that enables you to harness a growth mindset and the ...
Liteline has announced they will be establishing a Western Canada Regional Office and Distribution ...


Wayne Long and Jim BenderIdeal Supply is proud to announce that as of January 1, 2021 they have appointed a new Sales Manager for both the Electrical and Industrial divisions.

Wayne Long (left) will serve as thier Electrical Division Sales Manager. Wayne spent 11 years with Ideal Supply in the early years of his career, and was with Benshaw Canada for 20 years in senior sales management roles in Canada and the USA before re-joining Ideal in 2017, as thier Industrial Division Sales Manager. Long is a seasoned executive and has a proven track record of building strong relationships with customers and suppliers, and as a coach to sales teams to grow businesses.


Read More


OmnicableOmni Cable located in Brampton, ON, is proud to announce it received IMARK’s 2020 Order of the Golden Maple Leaf Award in its first year eligible for the award.

The Order of the Golden Maple Leaf Award is an annual award that is presented to all IMARK suppliers who meet the set requirements, including supporting members and participating in IMARK Canada’s marketing programs.




Read More



POW-R-Line CS Switchboards by EatonThe Solution to Your Switchboard Needs Now and for the Future.

Introducing Eaton’s Pow-R-Line CS switchboard, the most compact, expandable, service entrance and distribution solution in Canada. This versatile design allows for top or bottom service entrance cables, and expansion sections to the main structure to suit any design requirement.

Eaton’s Pow-R-Line CS switchboard provides a space-saving design advantage with a smaller footprint than any comparable switchboard in the market.


Read More


LitelineLiteline has announced they will be establishing a Western Canada Regional Office and Distribution Center. Currently under construction in Langley, British Columbia, the new facility will service British Columbia to Saskatchewan in Canada, as well as the Pacific Northwest and California in the United States.

"As we lightly refer to the facility as “BC/DC”, the new operation will relieve some load for our 160,000 sq ft HQ in Richmond Hill, Ontario, and our other distribution points in Montreal, QC, and Dallas, TX," said the company via press release. 



Read More


Eaton AR AppAdd or remove switchboard structures according to your construction needs, such as the main incoming with or without Canadian metering requirements, distribution loads, and submain sections. Verify your assembly footprint with thermal magnetic devices such as breakers and fusible switches (with or without meter sockets). Check for clearances and cable landing locations.

No need to guess what configuration will best suit your needs or wonder how the Pow-R-Line CS switchboard will fit in your location.



Read More



Marcos SimardBy Line Goyette

Marcos Simard was recently appointed Managing Director of WESCO and Anixter EES Montréal (Electrical & Electronic Solutions). This young manager, a graduate of the University of Quebec in Trois-Rivières with a degree in business administration and holder of a post-graduate degree from Laval University in Information Technology Management, does not seem destined for a career without unexpected shifts.

Marcos has been with WESCO since 2015. We remember that in 2020, WESCO proposed a merger with Anixter...

Read More


Jeffrey MoyleBy Line Goyette

“The ongoing integration of Rexel Utility into our Canadian business platforms has underscored our responsibility as an organization to find creative solutions for today’s challenges, as well as to prepare for tomorrow’s opportunities.”

This quote from Jeffrey caught my attention. Vice President, Supplier & Digital Strategy at Rexel Canada Electrical Inc., Jeffrey has extensive experience in the industry and is a graduate of the University of Western Ontario with a Master’s in Business Administration, focusing on internarial leadership.

Read More


Kerrwil Publications Great Place to Work. Certified December 2019 - December 2020

538 Elizabeth Street, Midland,Ontario, Canada L4R2A3 +1 705 527 7666
©2021 All rights reserved

Use of this Site constitutes acceptance of our Privacy Policy (effective 1.1.2016)
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Kerrwil