Hubbell Inc., a Shelton-based manufacturer of electrical and electronic products, is instituting pay cuts and furloughs as cost-saving measures due to the impact of the coronavirus pandemic.
David G. Nord, chairman and chief executive officer, said in an announcement, “As we consider the anticipated challenges we expect to face as a result of COVID-19, we have reviewed all aspects of our business to determine a series of cost management actions to sustain the organization through this economic uncertainty.”
The company plans to take the following steps during the second quarter, according to Nord:
- The board of directors will forego its quarterly retainer payments
- Senior executives will take a 25% salary reduction
- All other executives will take a 15% salary reduction
- Salaried employees will take a two-week furlough
On the flip side, the company is working to give additional support to hourly workers, who will receive “additional appreciation bonus pay” during the second quarter.
The company reported that for the first quarter of 2020, it had earnings per diluted share of $1.37, and adjusted earnings per diluted share of $1.64. Hubbell’s products are used in the construction industry and also have industrial and utility applications.
“Hubbell delivered another quarter of solid operating performance,” Nord said.
The company has faced challenges due to the pandemic related to the temporary closure of facilities, including in Mexico, and project delays, according to Nord. Because manufacturing is regarded as an essential industry, most of the company’s facilities have remained open.
Nord reported that the company expects the pandemic to have an adverse impact across its electrical markets, though there has been strong demand in its utility solutions segment.
The company’s electrical segment net sales for the first quarter of 2020 were $606 million, compared to $630 million for the same period in 2019. For Hubbell’s utility solutions segment, net sales in the first quarter of 2020 were $484 million, up from $457 million in the first quarter of 2019.
In response to the pandemic, the company has taken measures to protect employees, including expanded cleaning, safety and social-distancing protocols, and requiring remote work when possible, Nord added.
“We are committed to ensuring we come out on the other side of this challenging period in a position of strength to meet the needs of our customers,” Nord said in the press release.
On Friday, the company’s stock (NYSE: HUBB) was trading at $119.20. In contrast, on Feb. 12, it was at $149.13. In late March, it hit a 52-week period low of $85.62.
Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.
