Good day, everyone, and welcome to the Hubbell Incorporated fourth quarter 2012 earnings conference call. Today’s conference is being recorded. (Operator Instructions) At this time, I would like to turn the conference over to Mr. Jim Farrell. Please go ahead, Sir. Jim Farrell – Director IR: Good morning, everyone, and thank you for joining us. I'm joined today by our Chairman of the Board, Tim Powers, our President and Chief Executive Officer, Dave Nord, and our Chief Financial Officer, Bill Sperry. Hubbell announced its' fourth quarter results for 2012 this morning. The press release and earnings slide materials have been posted to the investor section of our website at www.hubbell.com. Please note that our comments this morning may include statements related to the expected future results of our company and are therefore forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Therefore, please note the discussion of forward-looking statements in our press release in considering incorporated by reference into this call. In addition, comments made here also include some non-GAAP financial measures. Those measures have been reconciled to comparable GAAP measures and are included in the press release in the earnings slide materials. And now with that, let me turn the call over to Tim. Tim Powers – Chairman, CEO: Thank you, Jim. I'd like to frame a little bit the year of 2012. I think it represents in a little bit of an economy that got softer as the year ended, very strong and improving performance of Hubbell overall. While December was slightly below what we anticipated and therefore our top line in the fourth quarter was a few points lower than we thought, overall the year was an excellent year. And as you can see in the fourth quarter, our cash flow got us to equal to net income just as we have done for many years. Also, we concluded an acquisition in January and the pace of those acquisitions has quickened in the recent past. And we're pleased with the steady progress we've made over the last few years and committed to continue that improved performance into the future. And with that, I'll turn it over to Dave for his comments.

Okay, great, thanks, Tim. Good morning, everybody. Let me just give you some perspective, my perspective on certainly the fourth quarter and the year. And I agree with Tim. It's a very good performance for the year, although it's a year that I can say I'm happy it's behind us because we saw a tremendous amount of volatility that we were able to successfully navigate, but would rather have a little less volatility. I've been asked how I would characterize the year and I say it's a good year. It was a really good year. It started as a great year you'll recall. We had a very strong start. But we knew things would slow, or at least we expected they would slow in the second half and that turned out to be the case with a lot of ups and downs along the way. But we're very pleased that we were able to navigate that and actually improve our margins more than we had anticipated. The fourth quarter was particularly challenging with a lot of volatility. We expected things to slow, but certainly not to the depth that we experienced principally in the month of December. And there's a lot of contributing factors to that; some of it based on experience, some of it based on conversations, some of it's just anecdotal. But we've said in the past that the fourth quarter is always a little challenging to predict because of the volatility that can exist in the channel and buying behaviors. And so we experienced some of that. We also experienced, certainly, some disruption in markets caused by super storm Sandy. On the one hand, a very positive contributor to power in sales to support those efforts. But at the same time, the magnitude of that work took…

(Operator instructions). Your first question will come from Christopher Glynn with Oppenheimer. Christopher Glynn – Oppenheimer: Thanks, good morning. Just on the orders – sounding pretty good in January, is both segments participating in that? Dave Nord – President, CEO: Yes, Chris, that’s really – it’s really broad based other than the high voltage and some of the industrial sector, but really all of our businesses are up in January so far. But again, that’s, you know, three weeks into the year, so a little cautious, but I like the trend so far. Christopher Glynn – Oppenheimer: Great, and would you characterize that – would some of the cautions stem from maybe characterizing part of that as just exhaling after kind of project referrals in December? Dave Nord – President, CEO: Yes, certainly – I mean, that is – the magnitude of the weakness, you know, in the last couple weeks, we had the situation before with I think some of the things are unique, there’s a lot of uncertainty we’ve talked about around the election and fiscal cliff, and I think that had an impact, and I’ve heard that from customers on buying habits, but it’s difficult to quantify any of the things individually, but collectively it was very concerning. So, just being a little bit cautious coming out, but I – there’s early indicators that it should be a positive year. Christopher Glynn – Oppenheimer: Okay, and sticking with the tough to quantify, when we look at Sandy, were you trying to say that was really a net neutral, that if you had a 6% help from, you know, the East Coast there, that that was probably the draw from the rest of the distribution business? Dave Nord – President, CEO: I don’t know that I would –…

And moving on, next we’ll hear from Rich Kwas with Wells Fargo Security.

Hi, good morning everyone. Dave Nord – President, CEO: Good morning, Rich.

Question on distributions, so, down in the quarter – Dave or Bill, have you seen any of the benefit from the housing starts activities, because I know through third quarter you really hadn’t seen anything, and I imagine in fourth quarter you didn’t see much either, but what’s within – what’s kind of baked into the outlook for power from that piece of the business for ’13? Bill Sperry – SVP, CFO: Yes, you know, Rich, we haven’t seen much effect, and the majority of the distribution side of our utility business has a – is really driven off of maintenance and repair which for us has sort of a GDP kind of like feel, so when Dave was walking through that piece of the pie, you know, the D is driven in large part by the maintenance, but I think you’re suggesting that single family housing will need hook ups, and we agree with that.

Okay, but it sounds like you don’t have that much factored in for the ’13 outlook from the contribution. Bill Sperry – SVP, CFO: I would say not much, but you’re directional point we agree with.

Okay, okay, and then on the high volt stuff, you know, that – I know earlier in the year you said the orders were down, but then they may be looking to stabilize some time later in ’12, which really didn’t happen – what’s your sense for right now what you’re seeing in terms of activity projects that have been pushed out? Are you seeing any loosening on that front? Bill Sperry – SVP, CFO: Yes, I think that you are right to say that we hoped that the bottom would be ’12, and now it feels like the bottom is ’13, and you know, the compares for them get easier, but the last three quarters of the year versus the first, for example, but you know, this larger capital, intensive kind of spending I think was the most sensitive across all of our business portfolio, and these decisions seem to be deferred the most. So, we’re hoping that we sort of sludge through ’13 and bottom in this business, and that, but we are still very – our outlook in the medium terms is for a very positive growth rate for the business.

All right, okay, and then this last one for me on a lighting piece, so this year, non-res, you know, very slight growth expectations, and once you get into kind of a good run rate in terms of non-residential construction spending, that obviously helps the lighting business. What’s kind of the out growth that you would expect apart from just the [inaudible] up turn from non-residential with relighting activity, and what have you seen over the last couple of years, because clearly the lighting business has held in a lot better versus the spending numbers – just trying to get a sense for what the relight activity in terms of additional benefit could occur once we get into the turn upward in the non-residential side? Bill Sperry – SVP, CFO: Yes, I think what we’re hoping, Rich, is that relight trend is actually independent of the new construction cycle. So, our sense is that we’re still in the reasonably early innings of the relight trend, so the fact that we’ve been doing double digits there, you know, we’re hoping that that can continue even if new constructions starts to feel some rebound, we hope that it doesn’t rob, you know, away from the relay trend at all. Rich Kwas – Wells Fargo Securities: Okay. Thank you. Part 2

(Operator Instructions). Your next question will come from Nicole DeBlase of Morgan Stanley.

Yeah, good morning, guys. Dave Nord – President, COO: Good morning.

I want to start with free cash flow allocation. I noticed when you guys were talking about it you spoke about M&A, you spoke about the dividend, but you did not mention share repurchase. Can you talk a little bit about the potential for a pickup in share repurchase activity in 2013? Bill Sperry – SVP, CFO: I think, Nicole, it’s a good question. You know, we continually are evaluating the best uses of our cash. I think, you know, our paradigm continues to go down the waterfall where CapEx to us is kind of the first priority. We really think that we’re getting excellent returns from a productivity perspective on the capital that we’re putting out there. Our dividend to us is kind of the second order. We’d like to be a responsible increaser of that as our net income structurally increases. We’re hoping to provide that to our shareholders in terms of kind of a steadily increasing return from there. And acquisitions and share repurchases then come next, in that order. So I think depending on how robust the pipeline is versus not will dictate the degree to which share repurchase versus acquisitions, you know, happen. But we’ve got to look at both of those levers, I think, as we’re moving forward here.

Okay, got it. And since you brought it up, can you just comment on the M&A pipeline, how that looks right now? Bill Sperry – SVP, CFO: Yeah, if you ask me to comment on it, it’s never robust enough. I know you’re laughing, but it’s – yeah, we’re very busy, Tim and Dave both commented on kind of last – we’ve got seven deals over really the last 15 months or so. That’s a nice pace. I hope that we can continue doing that pace, but also it would be great if we could add maybe some larger things. The pace, those last seven have been the very typical, you know, smaller sized, Hubbell tuck-in kind of sized deals. You know, we’ve got - as we commented on our balance sheet page, we’ve got the liquidity to support some good investing there.

Okay, got it. And then if I could just squeeze one more in. If you could parse out the 40 basis points of operating margin expansion that you guys expect in 2013, it sounds to me like the bulk of that’s coming from volume leverage and productivity rather than price cost. But if you could just talk about the puts and takes, that would be helpful. Dave Nord – President, COO: I think you’ve got it exactly right.

Thank you. Dave Nord – President, COO: We need volume – we need the volume to get there, yep.

And from JP Morgan, we’ll go to Drew Pearson. Drew Pearson – JP Morgan: Hi, good morning. Dave Nord – President, COO: Good morning, Drew. Drew Pearson – JP Morgan: So just at a very basic level, I just want to make sure I understand the revenue guidance. I think you’re guiding to basically two to four on the end market growth. Presumably, there’s a little bit of positive prices, maybe 50 bps, perhaps you can comment on that. And when I add that up, I get, you know, in organic growth, that’s probably a little north of 3 at the midpoint whereas if I’m reading your revenue guidance correctly, it looks like you’re doing 1 to 3 organic embedded in that 3 to 5. So just maybe check my math and just talk about relating the end market, where you see your organic revenue. Bill Sperry – SVP, CFO: Yeah, no, I think that’s right, Drew. We’re looking at, right now, 1 to 3 of organic with 2 for acquisitions, and those are closed acquisitions, we’re not contemplating any, you know, volume increases that would come from additional acquisitions but certainly that would be additive. And I think that is, you know, acknowledge that, you know, we hope that turns out to be a conservative estimate, the 1 to 3. Drew Pearson – JP Morgan: Okay, that’s helpful. And then just… Dave Nord – President, COO: [Inaudible] that price cost is a very benign environment for ’13 based on our expectations. Drew Pearson – JP Morgan: Okay, that’s helpful. And then just back to the balance sheet, I mean, have you, you know, your remainder in net cash position, obviously you want to prioritize the cash reported as you talked about, but as you think about sort of a longer-term target, I mean, is a net cash position in the longer term a sustainable target as you sort of continue at the current pace of [inaudible] deals? At what point do you consider moving to maybe a more sustainable long-term capital structure? Tim Powers – Chairman, CEO: Well, I think, Drew, that it’s – it would be fair to describe our objectives as having a conservative balance sheet. We like to be able to have liquidity on hand to support our investments and we’ve enjoyed a nice conservative balance sheet that has served us well in times of cyclicality. And so I would expect – I don’t know that I’m going to define that for you in terms of debt to capital or net to cash or whatever, but I think you should expect from Hubbell a conservative balance sheet. Drew Pearson – JP Morgan: All right. Thanks very much.

From Macquarie, we’ll go to Mike Wood.

Hi. Your organic growth forecast does look conservative, but I was curious about the power outlook specifically. Most utility companies that do give CapEx guidance has forecasted declining capital spending for 2013, so can you elaborate for that segment whether your performance is based on exposure to OpEx versus CapEx or a particular high-growth area that you have exposure to or content or price? Bill Sperry – SVP, CFO: Mike, I think your first point is the one I’d remind you of how much of our power revenues are really driven off of maintenance and repair, which come out of the operating line, not the capital line.

Okay, got it. And the high-voltage test equipment, you mentioned some order activity in January for that business specifically. I understand that there’s a fairly long lead time. Are you seeing any type of activity early on that would give you some encouragement for back half of the year acceleration or into 2014? Dave Nord – President, COO: No, what we’ve seen actually is not what you said, but rather that the first quarter of ’11 was actually the strongest year for them. So our compares are actually the most challenging. And I think what dad was saying is, we think that will be bottoming by the middle of the year. So you’re right that the lead times are long. There’s certainly lots of activity in quoting that they see, but a lot of that has been pushed out and delayed and deferred. So that part is hard for us to pin down for you, but you’re right to say it’s long lead time visibility that we’ve got through the half year suggests that it’s going to be challenging compares to last year. Tim Powers – Chairman, CEO: Yes, Mike, it’s really the level of activity around project discussion and project bidding that gives an indication that things will start to bottom, it’s just the timing of when those start to get, you know, converted into orders and they really step up.

Okay, thank you.

From D.A. Davidson, we’ll go to Brent Gilman. Brent Gilman – D.A. Davidson: Hi, good morning. Just a question on the outlook for the 1 to 3% growth for new non-residential that you’re looking for. Are you assuming any new construction or is that essentially all relight retrofit? Dave Nord – President, COO: No, there’s some new construction in there and they – in the second half. Brent Gilman – D.A. Davidson: Okay. And then just one more on the power guidance, the 2 to 4% organic, I mean, obviously that implies some uptick here from the growth you experienced in the second half, and I just wanted to get a little bit more feel for that to give some confidence there that you’ll be above that second half run rate. And is that due in part, I guess, to some of the unusual events like Sandy here in the second half? Bill Sperry – SVP, CFO: Yeah, I think what – I would, you know, we had 7% growth for the full year in power and I think the shape of the year was a little bit unusually pulled forward, it wasn’t smoothly spent during the four quarters. So as Dave was commenting using weeks, months or quarter can be a little misleading. But when we stretch out those dynamics across the full year and we understand the essential nature of the maintenance and repair work that we do with our utility partners in maintaining the quality of the networks gives us confidence that that maintenance and repair work needs to be done. It’s harder on the transmission side where you see large spiky-lumpy projects. I think Dave gave you a very good flavor around those as to the fact that the spending really picked up through ’11. It continued to grow in ’12 and our outlook is for a high level of spending but it gets harder for us to show you lots of incremental growth on that because the level is so high. Brent Gilman – D.A. Davidson: Okay. Thank you.

And from Stifel Nicolaus, we’ll go to Noelle Dilts.

First, I just want to touch on a few additional questions on the power side of the business and I’m just going to ask first if you can quantify your growth expectations for the transmission business in ’13. And then second, can you discuss what you’re seeing in the international piece of the business and your expectations for ’13? Tim Powers – Chairman, CEO: Yes, I think our outlook in ’13 for transmission would be in low-single digits, Noelle. And I think that the international piece of our power business, which has reasonable exposure to Brazil and to a lesser degree, locally in China we actually have some more favorable views of that international potential versus a more challenging ’12.

Okay, great. And then you know, the pricing impact was obviously positive in the quarter. Was there any beneficial impact from Sandy on pricing? And then secondly, can you just comment on if you’re seeing more of the price benefit on the transmission side or the distribution side? Tim Powers – Chairman, CEO: The impact of Sandy is not so much on pricing, it’s actually just the mix of the products, the nature of those products. We do not raise prices on products, you know, in a crisis, we actually deliver – the standard price of those products generally have a higher margin so you do get a larger benefit there.

Right, okay, perfect. And then can you just update us on your pension expense expectations for 2013 versus 2012? Bill Sperry – SVP, CFO: Yeah, I think that in general, we hope to – we’ve had some decent headwind in ’12 from pension and we hope to be able to reverse that a little bit next year.

Okay. And then the last question. You know, you’ve said in the past that you’re LED margins are pretty consistent with your traditional product margins, but can you just give us some thoughts on how you’re looking at LED margins for ’13, if there’s some room for expansion of input costs to go down? Just your thoughts there. Tim Powers – Chairman, CEO: You know, I think we would give you the consistent story that we have, which is as the components, the LED components themselves become cheaper to us, we would expect to be passing that through to our customers in order to continue to drive the adoption rate. So like I said, for the year, we hit 17%, the quarter was at 20%, so you can see that continued trend upward and we’d like to help facilitate that change. And as a result of that, our expectation is that that transition is margin neutral on a SKU by SKU basis.

Great. Thanks so much.

(Operator Instructions). And it does appear all questions have been addressed. Tim Powers – Chairman, CEO: Great, okay. That concludes today’s call. Thank you, everyone, for joining us today; certainly feel free to call us if you have any follow-up questions. I’d be happy to take those today. Thanks again.

Ladies and gentlemen, that does conclude today’s presentation. We do thank everyone for your participation.