Name: Hubbell Inc. (NYSE:HUBB) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Hubbell Inc., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net sales	4,947,900)	4,194,100)	4,186,000)	4,591,000)	4,481,700)
Cost of goods sold	(3,476,300)	(3,042,600)	(2,976,700)	(3,238,300)	(3,181,300)
Gross profit	1,471,600)	1,151,500)	1,209,300)	1,352,700)	1,300,400)
Selling & administrative expenses	(762,500)	(619,200)	(676,300)	(756,100)	(743,500)
Operating income	709,100)	532,300)	533,000)	596,600)	556,900)
Gain (loss) on disposition of business	—)	(6,900)	—)	21,700)	—)
Loss on extinguishment of debt	—)	(16,800)	—)	—)	—)
Pension charge	(7,000)	—)	(7,600)	(8,500)	—)
Interest expense, net	(49,600)	(54,700)	(60,300)	(69,400)	(72,400)
Investment income	—)	—)	—)	1,500)	100)
Other income (expense), net	4,500)	5,400)	(11,600)	(21,400)	(17,600)
Other expense	(52,100)	(73,000)	(79,500)	(76,100)	(89,900)
Income from continuing operations before income taxes	657,000)	459,300)	453,500)	520,500)	467,000)
Provision for income taxes	(140,200)	(88,200)	(97,500)	(113,100)	(100,900)
Net income from continuing operations	516,800)	371,100)	356,000)	407,400)	366,100)
Income from discontinued operations, net of tax	34,600)	34,500)	—)	—)	—)
Net income	551,400)	405,600)	356,000)	407,400)	366,100)
Net income attributable to noncontrolling interest	(5,500)	(6,100)	(4,800)	(6,500)	(5,900)
Net income attributable to Hubbell Incorporated	545,900)	399,500)	351,200)	400,900)	360,200)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

An analysis of the financial performance from 2018 through 2022 reveals a period of volatility followed by significant growth. Net sales experienced a moderate increase in 2019, followed by a contraction in 2020 and stagnation in 2021, before achieving a substantial peak in 2022 at 4,947,900 thousand US dollars. This trajectory indicates a strong recovery and expansion phase in the most recent fiscal year.

Profitability and Margin Trends: Gross profit followed a similar pattern to net sales, reaching a five-year high of 1,471,600 thousand US dollars in 2022. While the gross margin remained relatively stable, there was a slight compression in 2021. However, the 2022 results demonstrate improved cost management and pricing power, as gross profit increased more sharply than the cost of goods sold compared to previous years.
Operating Efficiency: Operating income exhibited resilience, maintaining a consistent range between 532,300 and 596,600 thousand US dollars from 2018 to 2021. A significant breakthrough occurred in 2022, with operating income rising to 709,100 thousand US dollars. This increase suggests an improvement in operating leverage, as the growth in net sales outpaced the growth in selling and administrative expenses.
Expense and Liability Management: A consistent downward trend is observed in net interest expenses, which decreased from 72,400 thousand US dollars in 2018 to 49,600 thousand US dollars in 2022. This steady decline indicates a reduction in debt obligations or a successful refinancing strategy. Other expenses also showed a general decline toward the end of the period, contributing to a healthier bottom line.
Net Income and Bottom Line Growth: Net income attributable to Hubbell Incorporated showed a marked increase in 2022, reaching 545,900 thousand US dollars, compared to 399,500 thousand US dollars in 2021. This growth was supported not only by continuing operations but also by contributions from discontinued operations, which added approximately 34 million US dollars in both 2021 and 2022. The provision for income taxes rose proportionally with the increase in pre-tax income, reflecting the higher profitability of the 2022 fiscal year.

Overall, the financial data indicates a transition from a period of stability and slight contraction to one of accelerated growth. The combination of rising net sales, reducing interest costs, and expanding operating income suggests a strengthened financial position as of the end of 2022.

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