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Thomas & Betts Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: July 30, 2010 01:15PM

Thomas & Betts Corp. (TNB) filed Quarterly Report for the period ended 2010-06-30. Thomas & Betts Corp. has a market cap of $2.12 billion; its shares were traded at around $40.09 with a P/E ratio of 15.2 and P/S ratio of 1.1. Thomas & Betts Corp. had an annual average earning growth of 11.3% over the past 5 years.

TNB is in the portfolios of PRIMECAP Management, John Keeley of Keeley Fund Management, Chuck Royce of Royce& Associates, John Hussman of Hussman Economtrics Advisors, Inc., Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates.

Highlight of Business Operations:

Earnings from operations, both in dollars and as a percent of sales, increased from the respective prior-year periods. These improvements reflect current year acquisitions, higher sales volumes, previous actions to manage costs, headcount and capacity as well as the impact of a weaker U.S. dollar. Results in both periods reflect a pre-tax charge of $5.3 million ($0.06 per share) in the second quarter of 2010 for environmental remediation. Results in the first six months of 2010 also included pre-tax charges of $3.2 million ($0.04 per share) in the first quarter for facility consolidations related to our Electrical segment.

Net earnings in the second quarter of 2010 were $33.6 million, or $0.63 per diluted share compared to net earnings of $22.7 million, or $0.43 per diluted share in second quarter of 2009. Net earnings in the first six months of 2010 were $61.6 million, or $1.16 per diluted share compared to net earnings of $48.7 million, or $0.92 per diluted share in the prior-year period.

Net sales in the second quarter of 2010 were $514.6 million, up $53.6 million, or 11.6%, from the prior-year period and included approximately $26 million from acquisitions. For the first six months of 2010, net sales were $984.1 million, up $63.3 million, or 6.9%, from the prior-year period and included approximately $36 million from acquisitions. The year-over-year sales increases also reflect higher sales volumes in our Electrical segment. While volumes in our Steel Structures segment increased, overall sales declined due to lower selling prices reflecting lower steel commodity costs and more competitive market conditions. Foreign currency exchange positively impacted sales by approximately $13 million in the second quarter of 2010 and approximately $33 million in the first six months of 2010 when compared to the corresponding prior-year periods, which reflects a weaker U.S. dollar in the current year.

Gross profit in the second quarter of 2010 was $161.2 million, or 31.3% of net sales, compared to $131.9 million, or 28.6% of net sales, in the second quarter of 2009. Gross profit in the first six months of 2010 was $299.6 million, or 30.4% of net sales, compared to $269.4 million, or 29.3% of net sales, in the first six months of 2009. The year-over-year increases in gross margin for both the second quarter and first six months of 2010 reflect the positive impact from the current year acquisitions, higher production volumes in our Electrical segment and previous actions taken to manage costs, headcount and capacity.

Selling, general and administrative (“SG&A”) expense in the second quarter of 2010 was $105.3 million, or 20.4% of net sales, compared to $93.0 million, or 20.2% of net sales, in the prior-year period. SG&A expense in the first six months of 2010 was $195.0 million, or 19.8% of net sales, compared to $185.6 million, or 20.2% of net sales, in the prior-year period. The second quarter and first six months of 2010 reflect a pre-tax $5.3 million environmental remediation charge. SG&A as a percent of sales in the current year periods reflects our continued overall efforts to tightly manage expenses as well as lower year-over-year pension and compensation costs.

Net earnings in the second quarter of 2010 were $33.6 million, or $0.63 per diluted share, compared to $22.7 million, or $0.43 per diluted share, in the prior-year period. Net earnings in the first six months of 2010 were $61.6 million, or $1.16 per diluted share, compared to $48.7 million, or $0.92 per diluted share, in the prior-year period. The second quarter and first six months of 2010 included a pre-tax $5.3 million ($0.06 per diluted share) environmental remediation charge. The six months ended June 30, 2010 included $3.2 million ($0.04 per diluted share) of first quarter, pre-tax charges related to facility consolidation.

Read the The complete Report



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