Thomas & Betts (TNB) 8-K Thomas & Betts Corporation Reports Third Quarter 2008 Earnings

Exhibit 99.1

Thomas & Betts Corporation Reports Third Quarter 2008 Earnings

$1.11 Earnings per Diluted Share from Continuing Operations, Up 26.1 Percent on Record Sales

MEMPHIS, Tenn.--(BUSINESS WIRE)--October 23, 2008--Thomas & Betts Corporation (NYSE: TNB) today reported net earnings on a continuing basis of $63.2 million or $1.11 per diluted share, an increase of 23.2 and 26.1 percent respectively. Net earnings including discontinued operations were $62.2 million or $1.09 per diluted share. Net earnings were $51.3 million or $0.88 per diluted share in the third quarter of 2007.

Third quarter net sales were a record $665.7 million, up $113.0 million or 20.4 percent compared to last year. Acquisitions contributed approximately $80 million to the year-over-year net sales increase. Price increases related to higher commodity and energy costs also contributed significantly to the underlying sales growth. Foreign currency benefited sales by approximately $8 million.

“Our strong operating performance clearly demonstrates our ability to execute,” said Dominic J. Pileggi, chairman and chief executive officer. “In particular, our core electrical segment performed very well, successfully offsetting higher commodity and energy costs. Notably, our recent acquisitions are fully integrated and contributed significantly to our strong performance. Overall, our Electrical segment delivered an impressive 20.6 percent segment earnings margin in the third quarter.”

Third quarter 2008 gross profit was $208.3 million or 31.3 percent of sales, up from 30.9 percent of sales in the prior-year period due primarily to improved product mix in the Electrical segment. Acquisitions also contributed to the improvement in gross profit as a percent of sales.

Selling, general and administrative (SG&A) expense was $106.9 million or 16.1 percent of sales, essentially flat as a percent of sales compared to last year.

Third quarter 2008 earnings from operations were up 23.7 percent to $101.4 million compared to last year, with acquisitions contributing significantly to the increase. As a percent of sales, earnings from operations were 15.2 percent compared to 14.8 percent in the prior-year period.

Year-over-year net interest expense increased $3.6 million to $9.4 million in the third quarter, largely as a result of funding for acquisitions. The effective income tax rate in the third quarter was 31.0 percent, in line with 2007.

SEGMENT RESULTS

Reportable segment earnings increased 19.5 percent to $133.5 million in the third quarter 2008, with acquisitions contributing significantly to the growth. As a percent of sales, segment earnings were 20.1 percent, in line with last year.

Electrical segment sales increased 25.4 percent year over year to $578.8 million in the third quarter 2008. Acquisitions, as well as price increases related to higher commodity and energy costs, contributed significantly to the sales growth. Foreign currency benefited sales by approximately $7 million. Solid demand in industrial MRO and international markets offset weakness in certain construction related markets.

Third quarter 2008 Electrical segment earnings were $119.1 million or 20.6 percent of sales. This compares to $94.6 million or 20.5 percent of sales last year. Acquisitions contributed significantly to the earnings increase.

Sales in the Steel Structures segment were $55.7 million, down approximately four percent compared with the prior-year period. Segment earnings were $9.0 million, or 16.2 percent of sales compared to $11.0 million or 18.9 percent of sales in the third quarter 2007. Both sales and earnings were adversely impacted by the recent Gulf Coast storms, as utilities in the region delayed delivery of certain project work in order to focus on restoring power outages.

HVAC segment sales were $31.2 million in the third quarter 2008, down six percent year over year due to softer market demand. HVAC segment earnings were $5.3 million or 17.2 percent of sales, compared to $6.2 million or 18.6 percent of sales last year.

YEAR-TO-DATE RESULTS

For the nine months ended September 30, 2008, net sales increased by 24.0 percent, to $1,902.5 million compared to $1,534.5 million last year. Acquisitions accounted for approximately $303 million of the year-over-year net sales increase. Underlying sales volumes declined slightly year over year as increased demand for industrial products did not fully offset weakness in markets affected by the slowdown in residential construction such as utility distribution and light commercial construction. Foreign currency benefited sales by approximately $48 million.

Segment earnings were $372.9 million, up 22.6 percent year over year largely as a result of contributions from acquisitions. As a percent of sales, segment earnings were 19.6 percent in 2008, essentially flat with 2007.

Net earnings including discontinued operations were $248.3 million or $4.29 per diluted share including a net benefit of $1.63 per diluted share from items recorded in the second quarter 2008. These items related to the sale of a minority interest in Leviton Manufacturing Company, a favorable legal settlement and a non-cash tax charge. In the nine months of 2007, net earnings were $134.9 million or $2.30 per diluted share which included the negative impact of a $0.08 per diluted share legal charge.

BALANCE SHEET HIGHLIGHTS

Thomas & Betts ended the third quarter 2008 with $665 million in total debt, down from $811 million at year end 2007. At September 30, 2008, cash was $203 million compared to $150 million at December 31, 2007.

Major sources of cash in the first nine months of 2008 include the net proceeds from the sale of the company’s minority interest in Leviton Manufacturing Company. Major uses of cash in 2008 include $100.6 million to repurchase 2.3 million shares in the third quarter, the repayment of $115 million of notes that matured in the second quarter and approximately $90 million for two acquisitions completed in the first quarter. The share repurchase activity had a negligible effect on earnings per share in the quarter.

2008 DIRECTIONAL GUIDANCE

“Looking forward, we believe that solid demand in industrial markets will continue to help offset the impact of weak residential-related construction markets in the fourth quarter,” said Pileggi. “In addition, our Steel Structures segment should benefit from shipments that were delayed due to the Gulf Coast storms. While price increases related to higher commodity and energy costs will benefit sales in the fourth quarter, significantly lower foreign currencies will likely have a negative impact on both sales and earnings. As a result, we have revised our full year 2008 directional earnings guidance to a range of $5.35 to $5.45 per diluted share.”

CORPORATE OVERVIEW

Thomas & Betts Corporation (www.tnb.com) is a leading designer and manufacturer of electrical components used in industrial, commercial, communications and utility markets. The company is also a leading producer of commercial heating and ventilation units and highly engineered steel structures used, among other things, for utility transmission. Headquartered in Memphis, Tenn., the company has manufacturing, distribution and office facilities worldwide. In 2007, Thomas & Betts reported net sales of $2.1 billion.

NOTE: The attached financial tables support the information in this news release:

Consolidated Statements of Operations

Segment Information

Consolidated Balance Sheets

Consolidated Statements of Cash Flows

CAUTIONARY STATEMENT

This press release includes forward-looking statements that are identified by terms such as "optimistic," "trend," “will,” and "believe." These statements discuss business strategies, economic outlook and future performance. These forward-looking statements make assumptions regarding the company's operations, business, economic and political environment, including, without limitation, customer demand, government regulation, terrorist acts and acts of war. The actual results may be materially different from any future results expressed or implied by such forward-looking statements. Please see the "Risk Factors" section of the company's Form 10-K for the fiscal year ended December 31, 2007 for further information related to these uncertainties. The company undertakes no obligation to publicly release any revisions to any forward-looking statements contained in this press release to reflect events or circumstances occurring after the date of this release or to reflect the occurrence of unanticipated events.

CONFERENCE CALL AND WEBCAST INFORMATION

Thomas & Betts will hold a conference call/webcast to discuss the company’s third quarter 2008 results on Thursday, October 23, 2008 at 11:00 am ET (10:00 am CT). To access the call, please call 201-689-8341. The call can also be accessed via the Thomas & Betts corporate website at www.tnb.com. The conference call will be recorded and available for replay through 12:00 midnight ET on Thursday, October 30, 2008. To access the replay, please call 201-612-7415, account number 9517, pass code 300026.

THOMAS & BETTS CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
	Quarter Ended				Year to Date
	September 30,		September 30,		September 30,		September 30,
	2008		2007		2008		2007
Net sales	$	665,679	$	552,704	$	1,902,500	$	1,534,494
Cost of sales		457,406		381,984		1,307,991		1,064,102
Gross profit		208,273		170,720		594,509		470,392
Gross profit - % of net sales		31.3%		30.9%		31.2%		30.7%
Selling, general and administrative		106,918		88,759		323,692		260,620
Selling, general and administrative - % of net sales		16.1%		16.1%		17.0%		17.0%
Earnings from operations		101,355		81,961		270,817		209,772
Earnings from operations - % of net sales		15.2%		14.8%		14.2%		13.7%
Interest expense, net		(9,355)		(5,759)		(33,455)		(12,756)
Other (expense) income, net		(469)		(1,925)		(2,416)		(1,445)
Gain on sale of equity interest		-		-		169,684		-
Earnings before income taxes		91,531		74,277		404,630		195,571
Income tax provision		28,375		23,026		155,273		60,627
Effective tax rate		31.0%		31.0%		38.4%		31.0%
Net earnings from continuing operations		63,156		51,251		249,357		134,944
Earnings (loss) from discontinued operations, net		(997)		-		(1,106)		-
Net earnings	$	62,159	$	51,251	$	248,251	$	134,944
Basic earnings (loss) per share:
Continuing operations	$	1.11	$	0.89	$	4.35	$	2.33
Discontinued operations		(0.01)		-		(0.02)		-
Net earnings	$	1.10	$	0.89	$	4.33	$	2.33
Diluted earnings (loss) per share:
Continuing operations	$	1.11	$	0.88	$	4.31	$	2.30
Discontinued operations		(0.02)		-		(0.02)		-
Net earnings	$	1.09	$	0.88	$	4.29	$	2.30
Average shares outstanding:
Basic		56,678		57,544		57,339		58,004
Diluted		57,142		58,309		57,802		58,796

THOMAS & BETTS CORPORATION AND SUBSIDIARIES
Segment Information
(In thousands)
(Unaudited)
		Quarter Ended				Year to Date
		September 30,		September 30,		September 30,		September 30,
		2008		2007		2008		2007
Net sales:
	Electrical	$	578,817	$	461,585	$	1,638,382	$	1,268,784
	Steel Structures		55,700		57,959		164,091		168,071
	HVAC		31,162		33,160		100,027		97,639
	Total net sales	$	665,679	$	552,704	$	1,902,500	$	1,534,494
Segment earnings:
	Electrical	$	119,146	$	94,592	$	326,093	$	256,328
	Steel Structures		9,032		10,954		29,619		30,899
	HVAC		5,349		6,180		17,144		16,992
	Total reportable segment earnings	$	133,527	$	111,726	$	372,856	$	304,219
Corporate expense			(11,283)		(12,261)		(28,117)		(43,555)
Depreciation and amortization expense			(18,573)		(15,218)		(61,771)		(40,334)
Share-based compensation expense			(2,316)		(2,286)		(12,151)		(10,558)
Interest expense, net and other (expense) income, net			(9,824)		(7,684)		(35,871)		(14,201)
Gain on sale of equity interest			-		-		169,684		-
Earnings before income taxes		$	91,531	$	74,277	$	404,630	$	195,571
Segment earnings - % of net sales:
	Electrical		20.6%		20.5%		19.9%		20.2%
	Steel Structures		16.2%		18.9%		18.1%		18.4%
	HVAC		17.2%		18.6%		17.1%		17.4%
	Total		20.1%		20.2%		19.6%		19.8%

THOMAS & BETTS CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
(Unaudited)
		September 30,		December 31,
		2008		2007
	ASSETS
Current assets:
	Cash and cash equivalents	$	202,910	$	149,926
	Restricted cash		8,549		16,683
	Receivables, net		345,606		280,948
	Inventories		320,186		271,989
	Other current assets		62,261		79,891
	Assets of discontinued operations		39,465		106,478
Total current assets			978,977		905,915
Net property, plant and equipment			311,754		305,959
Goodwill			922,623		873,574
Other intangible assets			314,991		299,370
Investments in unconsolidated companies			5,048		115,300
Other assets			61,402		67,668
	Total assets	$	2,594,795	$	2,567,786
	LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Current maturities of long-term debt	$	152,130	$	116,157
	Accounts payable		197,805		180,333
	Accrued liabilities		137,248		143,606
	Income taxes payable		50,144		10,731
	Liabilities of discontinued operations		10,728		18,146
Total current liabilities			548,055		468,973
Long-term debt			512,479		695,048
Other long-term liabilities			163,762		174,831
Shareholders' equity			1,370,499		1,228,934
	Total liabilities and shareholders' equity	$	2,594,795	$	2,567,786

THOMAS & BETTS CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
		Year to Date
		September 30,			September 30,
			2008			2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings		$	248,251		$	134,944
Adjustments:
Depreciation and amortization			61,771			40,334
Share-based compensation expense			12,151			10,558
Pre-tax gain on sale of equity interest			(169,684	)		-
Changes in operating assets and liabilities, net (a):
	Receivables		(66,840	)		(53,131	)
	Inventories		(37,781	)		(9,951	)
	Accounts payable		24,263			11,539
	Accrued liabilities		(16,216	)		15,236
	Income taxes payable		40,987			11,546
	Lamson & Sessions change in control payments		(12,685	)		-
	Other		2,223			3,316
Net cash provided by (used in) operating activities			86,440			164,391
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment			(29,839	)		(26,377	)
Purchases of businesses			(90,571	)		(304,855	)
Proceeds from sale of businesses			51,619			-
Proceeds from sale of equity interest, net			280,000			-
Restricted cash used for change in control payments			8,134			-
Other			412			353
Net cash provided by (used in) investing activities			219,755			(330,879	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term debt, net			(150,073	)		(266	)
Repurchase of common shares			(100,572	)		(132,958	)
Stock options exercised			1,883			22,230
Other			609			6,104
Net cash provided by (used in) financing activities			(248,153	)		(104,890	)
EFFECT OF EXCHANGE RATE ON CASH			(5,058	)		5,089
Net increase (decrease) in cash and cash equivalents			52,984			(266,289	)
Cash and cash equivalents at beginning of period			149,926			370,968
Cash and cash equivalents at end of period		$	202,910		$	104,679
Cash payments for interest		$	37,391		$	18,803
Cash payments for income taxes		$	114,389		$	41,511
(a) Net of foreign exchange and acquisition effects

CONTACT:
Thomas & Betts Corporation
Tricia Bergeron, 901-252-8266
tricia.bergeron@tnb.com