Good morning. My name is Jeff and I will be your conference operator today. At this time, I would like to welcome everyone to the First Quarter 2016 Results Conference Call. [Operator Instructions] Maria Lee, Vice President, Treasurer and Investor Relations, you may begin your conference.

Thanks, Jeff. Good morning, everyone and thank you for joining us. I am joined today by our President and Chief Executive Officer, Dave Nord and our Chief Financial Officer, Bill Sperry. Hubbell announced its first quarter results for 2016 this morning. The press release and earnings slide materials have been posted to the Investors 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 our 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 and consider it incorporated by reference into this call. In addition, comments may also include non-GAAP financial measures. Those measures are reconciled to the comparable GAAP measures and are included in the press release and the earnings slide materials. Now, let me turn the call over to Dave.

Okay. Thanks, Maria. Thanks everyone for joining this morning. Let me give some opening remarks and then Bill can take you through the specifics of our results. Certainly from our perspective, we had solid results in the first quarter, consistent with our long-term strategy of supporting shareholder value creation. Pretty much in line with our expectations, but certainly it feels a lot better than the last few years start to the year, more reliable, more consistent, so really felt good about that, particularly felt good on the top line, with sales up 3% and that had a combination of both organic growth as well as the acquisition benefits. We continue to execute on our restructuring and related actions and we continue to make investments in enhancing our presence in growing markets and growing businesses. And of course, we still have an ongoing deployment of cash, completing two acquisitions in the quarter as well as the share repurchases of $200 million. So, as a result of all this was earnings per share are up 4% year-over-year, adjusted for the restructuring and related costs. Before I hand it off to Bill to take you through the slides, let me just highlight a few other events in the quarter. As you know, we held our Investor Day in New York in March and many of you hopefully were able to participate either in person or by phone. It was great to see many of you there. This event allowed us to really showcase the leaders of our groups and particularly the new organization. You had a chance to hear directly from them how they feel about the bright future for Hubbell. Some of the highlights: Kevin Poyck talked about our 10% annual growth target in lighting. Darrin addressed the role of innovation in…

Thanks, Dave. Good morning, everybody. Thanks for joining us. I am going to use the slides that I hope you found this morning to help guide my comments and I am going to start on Page 3, first quarter summary. Solid quarter that gets us off to a good start for the year, net sales of $835 million, an increase of 3%, driven by organic growth of 2% absorbed by FX headwinds of those same 2%, but then acquisitions contributing another 3 points. The operating margin, adjusted for restructuring related, was at 13%, a 50 basis point decline. We continue to wrestle with the FX and mix headwinds that we have had. And we have had some unfavorable price cost productivity as we have invested, as Dave was mentioning in some of the high cost businesses. And we are getting some really good benefit from the restructuring that we have started. The results were $1.08 of earnings per share or $1.16 adjusted for the restructuring and related, a 4% increase from last year. On Page 4, I want to share with you some of our highlights from the quarter. I really think these help us illustrate the fact that our strategy is working and our business model is succeeding despite the uneven and mixed end markets that we are facing. As the starting point, we had a strong balance sheet that we can continue to deploy capital where we wanted to. In the quarter, we bought two companies for $172 million, one you heard Gerben talk about at Investor Day, the outside plant opportunity that he has got with telcom companies as people are building out fiber to the home, a good growth opportunity for us and one we feel we are taking good advantage of. The more significant was…

Okay. Bill thanks. Just first on the end markets on page 12, very similar, no changes at this point to our outlook for the end markets from although certainly based on their performance in the first quarter, some of those markets performed a little better and may indicate some upside, particularly on the residential and non-residential construction. Certainly also, happy I guess is maybe too strong a word to say that with a little moderation of improvement of oil prices, you have got a little moderation of the declines in the energy sectors. So that should bode well for the rest of the year and some improvement at least to get us to our outlook of 15% to 20% declines in that market. I think overall very simply, turning to Page 13, we are reaffirming our expectations for the full year. So, flat end markets, as we have indicated in those markets with the growth in construction-related markets, declines in oil and the core industrial markets. I mean, I think that flat when you look at the previous pie is plus or minus a point. So, we are just calling that flat. Hopefully, we have a bias to the upside, but at this point, that’s what we are looking at for the markets. That gives us our diluted EPS and the range continues to be $5.20 to $5.40 and that includes approximately $0.35 of restructuring and related costs. And free cash flow at least 90% of net income, slight change here. We are focusing putting more emphasis on working capital. And we are looking to improve from our original guidance. I think the team feels pretty confident about these expectations certainly given our good start to the year, 2% organic growth in the first quarter in a generally flat composite…

Thank you. [Operator Instructions] And your first question comes from the line of Rich Kwas from Wells Fargo Securities. Rich, your line is open.

Hi, everyone.

Hi, Rich.

Dave, on the outlook for resi, non-resi, you kept those at 3% to 5%, it looks like resi is coming in better at least here at the start of the year and it looks like the outlook seems that, that growth should sustain itself. So, that is starting to look conservative. Should we interpret that as just wait till we get into more of the meat of the season and then reevaluate and so there is potential conservatism in there? Is there something you are seeing that’s causing you greater concern?

Well, I mean, Rich, there is certainly admittedly maybe some conservatism in there. It’s early in the year. I think consistent with the view that I have expressed that I have heard from our customers, there are some mixed messages that come out. You saw within the last few days, new home sales dropped for the third month in a row, which – how does that play into the homebuilders’ permit starts, their activities. The good news on that is, since we are sort of at the tail end of that that would be something that wouldn’t really impact us until certainly later in the year, but that’s the kind of data that I look at and just I am a little bit cautious as we – until we get a little further into the year and see how some of that plays out. Hope that helps.

Yes. And then on non-res, what’s your – it seems like all the data points are stable to improving. Anything noteworthy there in terms of what you are seeing in terms of quoting activity particularly as it relates to your lighting and wiring business?

Nothing other than the – what continues to be the volatility in activity. You have good days and good weeks and bad days and bad weeks and so you have got to take enough of that. There is not enough of a consistent pattern that I would say everyday is up 10%, so I feel really good about that. You have got to – but certainly the first quarter was good. And the second quarter, I expect to be similar. But as you know, we also still have albeit less than historically still a dependence on a construction bias in the second and third quarter. So really it takes getting through the better part of the second quarter to start to get a reliable view as I would look at it.

Okay. And then does the guide still assume FX headwinds? I think I had $0.15 between translation and transaction for the year embedded in the outlook.

Yes, there is, Rich. Even though there is a little bit of weakening there, we are still – compared to the average level of last year we still have those kind of headwinds.

Okay, so no change. But if the dollar weakens, then there is potential that, that could soften a bit later in the year?

Yes, for sure. Yes.

Okay. And then last one, just on oil price, you kind of referenced around – a), what was harsh down in the quarter? And then, b), the 15% to 20%, is there any potential that – what would you characterize the potential that you come in at the low end of that range in terms of negative revenue growth year-over-year?

Yes. So Rich, the – for the quarter, we were down in the mid-20s against a still difficult compare last year. Even though oil prices were dropping, we had some sticky orders that shipped. And the way we see the year unfolding is the sequential dollars of harsh and hazardous start to flatten meaningfully. And so the compares on a VPY basis really start to shrink. And so the way we are guessing we are going to exit the year in sort of a single-digit down level, but it does feel like we are still in that range for the year right now.

Okay, that’s helpful. Thank you.

And your next question comes from the line of Christopher Glynn from Oppenheimer. Christopher, your line is open.

Yes, thanks. Good morning.

Good morning, Chris.

Hey, Dave. So, the markets that you listed as kind of potentially contributing to an indication of an improving outlook, is a pretty diverse group. Do you think – how would you handicap whether that’s restocking, a lack of destocking or actually maybe a bit of fundamental improvement just your kind of guts on those?

Yes. Look, I think if you started with the restocking question, I think it feels to us where we have data and we can see some point of sale, point of purchase kind of information. It doesn’t really feel like there has been a lot of restocking. It feels to us like inventory levels are at reasonable levels. I would say there has been some weather impact into your question. And so, they are right and maybe the construction season was kind of pulled forward perhaps a little bit. And so those are all kind of factors that we kind of keep considering and as Dave mentioned wanting to kind of get through a little bit more of the year to really see what’s happening on the orders side.

Okay, it makes sense. And then I just want to go into the electrical margin a little bit more. I think restructuring expense and payback were probably roughly offsetting and you lost 1.5 points of margin on slightly up organic. Just wanted to understand that, that differential because that 1.5 point difference is kind of apples-to-apples, maybe what was the price in the quarter for electrical in case I missed it? And just if you could quantify, at least qualitatively, the mix and price, cost impacts, that would help?

Yes, sure. So yes, so the mix and FX if you look at both of those impacts, that pretty much accounts for the entire decline. So the mix was the bigger piece of that and was just less than a point, but still a big impact. On the pricing, electrical’s pricing was line with how we exited the year in terms of headwind. So we haven’t seen that getting much worse, but still pretty strong level of pricing headwind.

Okay. And then Bill, lighting comments in March for opportunity to do 10% top line organic for the year in lighting, is that being validated?

Yes. So we did 10% in the first quarter.

Okay, thanks.

Your next question comes from the line of Jeffrey Sprague from Vertical Research Partners. Jeffrey, your line is open.

Hi, good morning. This is John on for Jeff. I just wanted to know if you can run through the lighting in a little more detail, what did kind of C&I do versus resi. And then any comment on the year-on-year change in margin, I think last quarter it was up in the order of magnitude of about 150 bps?

Yes. So between C&I and resi, C&I business was up high single-digits and the resi business was up double-digits to get us to 10% growth rate. And we are still seeing attractive margin expansion from the segment. And so we are enthusiastic that it looks like we are able to get good growth out of that business as well as put some emphasis on the cost side and restructure those costs to make sure that we get margins to come along with that growth.

Great. And then kind of thinking about the non-residential markets, do you have any color on what you are seeing in kind of commercial versus institutional, kind of drilling into healthcare versus educational verticals as well?

Yes. I would say of a commercial side, we have seen particular strength on the office front. And on the institutional side, I would say you call both of them both healthcare and education are kind of the standouts from that side.

Alright, great. Thank you very much.

Thanks. [Operator Instructions] Your next question comes from the line of Brent Thielman from D. A. Davidson. Brent, your line is open.

Hi, good morning.

Good morning Brent.

On the Power segment Bill, I think you talked in the past about kind of thinking pricing might follow the underlying inputs there, lower in steel and copper, do you still see that happening and I guess with some of those commodities moving higher as of late, do you think you can hold the line on pricing there?

Yes. I think that you are right to point that out. So as some of those commodities feel like maybe they have bottomed and we are starting to see inflation there. We have this challenge of seeing this price have to continue to chase the strong second half of ‘15 where we had real tailwind from those commodities and when can we convince our customers that there is inflation in front of us and kind of firm that price. I would say right now, they continue to have some bit of pricing power where it’s FX supported rather than just kind of general market. But I think you are right to point out kind of a soft pricing kind of the environment in general as commodities appear to be firming. And so that catches us at a time where we are going to have to be nimble with our customers to make sure that doesn’t – that dynamic doesn’t squeeze us.

Okay, thanks for that. And then on lighting, it looks like construction markets are certainly a tailwind, is there a way we can kind of think about what these restructuring and kind of self help initiatives might be doing to kind of that 10% underlying growth versus what the markets are giving you?

Yes. I think the restructuring is much more addressed at the common cost side where we have been taking out some inefficient facilities and putting our volume in lower cost sites. I think that’s really helping us on the cost side. I think on the growth side, you have got what the markets have, but then we have also been investing in some of the verticals, make sure we are going after things like healthcare vertical. And we are also investing in our agents on the front end of the business. And we are also investing in the resi channel. And so I think we are seeing volume paybacks from all of those investments on the top line. And I would say the restructuring and related is really attacking the cost structure.

Okay, great. And one more on Power if I could, it looks like the transmission market contributions maybe improved a little bit relative to I guess what you guys were saying last quarter, you kept 2016 outlook the same I think for the T&D markets, but have the underlying drivers between T&D changed and what’s that kind of mean for the Power segment from a margin perspective this year perhaps?

I think that the outlook is quite consistent with what we have seen. I think the T&D balance is where it’s been. The growth in that adjacency of the outside plant communications products has been notable. And I think the bigger driver on margins for Power would not be driven by any of those volume changes, but more by kind of the price-cost dynamic that we talked about on the last question. So certainly if there is organic growth, there will be good incrementals for the Power folks. But I also think being mindful of this price cost shift as commodities start to re-inflate, that’s where we have to be most mindful, I think.

Okay, thank you.

And you do have a follow-up question from the line of Rich Kwas from Wells Fargo Securities. Rich, Your line is open.

Yes. Just a quick follow-up on the restructuring spend, is that third still targeted for harsh and hazardous?

Yes. I think that it may come in slightly less than that, Rich. We still have good ideas that are coming up. And as we see if those volumes really do start to sequentially bottom and if we kind of find ourselves on the bottom of that, you – we may not have to dedicate as much of those dollars to that area as a full third. But it is a leading area of our attention and it has been getting a lot of those investment dollars for the reasons that you are citing.

And then Bill is the target still to get the cost structure to the $35, $35 to $40 a barrel of oil or doe s that mean when you say less than a third or potentially less than a third that that cost structure moves up a little bit closer to $40 or $45 or...

No...

Yes, I think we are – Rich, you are looking at assuming the cost structure would be more in the mid-$40s to $45 to $50. That’s really the issue if oil stabilizes in the mid-$40s and a little better. And quarters when we see the market then stabilize, we wouldn’t have to do quite as much, but we are certainly prepared to do more. We think we are still at a cost structure in the low to mid-50s so we still have a little more to do.

And then as the – if we get an increase in oil prices, is the margin associated with the business going to be as good as it was a few years ago when you are running hot?

We hope so.

Okay. So that’s the target to get back to your prior margin?

Yes. I don’t think that it was extraordinarily high in most of the business because of volume and absorption. I think it’s the nature of the product than the markets through the question – which is real question would be around pricing going forward.

I think on the way down, Rich, pricing behave reasonably well and constructively, such that our decrementals were kind of in line with what we expected. I think, as Dave said, if that – we have seen a lot more price deterioration on the way down. I think that would have made your question more challenging to answer in the affirmative. But we would say the value add of the product and the fact that the price and competitive dynamic remains kind of balanced should bode favorably for incrementals as the volume kind of comes back for us.

Okay, great. Thank you.

And there are no further questions at this time. I turn the call back over to Maria Lee.

Okay, great. Thanks. That concludes today’s call. We will be around all day for follow-up questions and thanks again for joining us.