Hubbell Cites Declining Projections

For Job Cuts

 ORANGE (AP) — Hubbell Inc announced Monday it would be laying off 1,000 employees in response to plunging demand for its products, including electrical, lighting, and telecommunications equipment.

Hubbell employs about 350 workers at its Newtown manufacturing plant.

The company cut its sales and revenue projections for 2006, citing accelerating weakness in the construction and utility industries.

Hubbell said it expects 2006 earnings of $2.53 to $2.58 a share, down from a previous estimate of $2.80 to $2.90 a share. Sales will fall about $40 million short of the company’s previous forecast of $2.39 billion for 2006.

President and CEO Timothy H. Powers said the job layoffs were directly related to the drop in business.

“We are seeing weakness in our business, with lower-than-anticipated orders in both residential and nonresidential construction and the utility sector,” Mr Powers said.

Hubbell has more than 11,000 employees in 42 plants and 16 warehouses worldwide, including about 4,700 in the United States.  The company reported total employment of 11,700 at the end of 2005.

It was unclear whether the layoffs will affect the Newtown plant, but the cutbacks are designed to reduce production.

Hubbell’s Class B stock closed on the New York Stock Exchange Monday at $46 a share, down $6.71 a share, or 12.7 percent.