Previous Statements by TNB
» Thomas & Betts' CEO Discusses Q2 2011 Results - Earnings Call Transcript
» Thomas & Betts Corporation Q4 2009 Earnings Call Transcript
» Thomas & Betts Corporation Q4 2008 Earnings Call Transcript
» Thomas & Betts Corporation Q3 2008 Earnings Conference Call Transcript
In an effort to discuss the company’s operations and performance in a manner which provides a like-for-like comparison, our remarks include a number of non-GAAP items and measurements. These non-GAAP measures are reconciled to GAAP financial information in the attachments included with our earnings release. They should not be considered a substitute for, or superior to financial measures defined by GAAP. We strongly encourage investors to consider all available information in their evaluation of Thomas & Betts.I would also like to remind you that our comments today include forward-looking statements, which make assumptions about our operations, business, economic and political environment. These forward-looking statements are subject to risks and uncertainties, as outlined in our current Form 10-K. I will now turn the call over to Dominic. Dominic Pileggi Good morning, and thank you for joining us today. Thomas & Betts turned in a very strong performance in the third quarter. We delivered solid organic sales growth in all of our key markets; industrial, construction, and utility. Solid growth in all of our key geographies, record segment margins in our electrical segment, and earnings from operations above the high end of our guidance. We also completed a small opportunistic and highly complementary acquisition in our HVAC segment, renegotiated our revolving credit facility with competitive rates and conditions, maintained price cost parity in the quarter, completed substantially all of the consolidation activities we initiated earlier this year in our electrical segment, and continued to refine and execute our vertical sales and marketing strategy. Consolidated sales grew nearly 17% year-over-year. Higher volumes in the electrical and HVAC segments and increased pricing across all three segments accounted for over half of the sales growth. Earnings per share increased 32% year-over-year to $1.03 above the high end of our guidance for the quarter. We consider this excellent performance and a testament to our ability to remain focused, execute against our strategies, and perform well financially, even in the face of sluggish economic growth, and increasing pessimism regarding the sustainability of the global recovery.
Turning now to how our businesses performed in the quarter. In our Electrical segment, sales increased 14% year-over-year to $500 million. If you recall, I spoke at length on our second quarter conference call about our belief in our strategy of delivering essential non-discretionary products and services to our targeted vertical end markets and geographies. This has proven to be advantageous in a slow growth macroeconomic environment, and was a key contributor to our performance in the quarter.
As I noted earlier, our Electrical segment delivered a record high margin at 21% of sales. This is 40 basis points better than the previous peak achieved in the third quarter of 2008, when segment sales were approximately 16% higher.