Thomas & Betts (TNB) 8-K Thomas & Betts Corporation Reports Third Quarter Net Earnings of $0.81 per Share Excluding Income Tax Benefit

Exhibit 99.1

Thomas & Betts Corporation Reports Third Quarter Net Earnings of $0.81 per Share Excluding Income Tax Benefit

GAAP Earnings $0.84 per Share; 2010 Full Year Earnings Guidance Increased

MEMPHIS, Tenn.--(BUSINESS WIRE)--October 21, 2010--Thomas & Betts Corporation (NYSE:TNB) today reported third quarter 2010 net sales of $533.0 million, up 9.9% compared to 2009 including $27.5 million in sales from acquisitions. Excluding acquisitions, year-over-year sales increased 4.2%. Increased volumes in the Electrical and Steel Structures segments drove the sales increase.

Third quarter 2010 net earnings were $42.6 million or $0.81 per diluted share, excluding a $1.5 million benefit ($0.03 per share) from the release of an income tax reserve. This represents a 22.7% increase compared to operating earnings of $0.66 per diluted share in 2009, which excluded a $4 million pre-tax charge ($0.05 per share) related to an estimate revision for environmental remediation. Reported net earnings were $44.1 million or $0.84 per diluted share for the third quarter 2010 compared to $32.1 million or $0.61 per diluted share for the prior-year period.

“We continued to execute against our strategy in the third quarter, which helped us again deliver strong financial results,” said Dominic J. Pileggi, chairman and chief executive officer. “Demand in our key end-markets and geographies evolved largely as we predicted while a more favorable than expected project mix in our Steel Structures segment drove earnings above the high end of our guidance for the quarter.

“Notably, we continue to strengthen our global presence in industrial markets with the international acquisition of Cable Management Group, Ltd. (CMG) on October 1, 2010. CMG‘s diverse portfolio of cable protection systems and market-leading brands complements our existing product portfolio, broadens our geographic exposure and positions us more prominently in faster-growing industrial markets such as rail, petrochemical, mining and automotive.”

SEGMENT HIGHLIGHTS:

Consolidated segment earnings were $106.2 million, up 16% compared to the third quarter of 2009. As a percent of sales, segment earnings were 19.9%, a 100 basis point improvement over last year.

Electrical:

Electrical segment sales increased 10.5% to $453.9 million in the third quarter compared to 2009. Excluding acquisitions, sales rose 3.8% year over year. Higher industrial and utility distribution volume accounted for most of the sales growth, with the balance attributable to price and foreign currency.

Electrical segment earnings were $92.3 million, or 20.3% of sales, in the quarter, compared to $78.3 million or 19.0% of sales last year. Improved volume, mix and the impact from current- and prior-year right-sizing activities contributed to the earnings improvement.

Steel Structures:

Third quarter Steel Structures segment sales were $57.2 million compared to $50.9 million last year. Segment earnings were $11.1 million, or 19.4% of sales, compared to $10.1 million, or 19.8% of sales, in 2009. Current quarter segment earnings benefitted from an unexpectedly favorable mix of projects that resulted in segment margins considerably better than those expected for the second half of 2010 as a whole.

HVAC:

HVAC segment sales were $21.8 million in the quarter compared to $23.3 million last year. HVAC segment earnings were $2.9 million, or 13.1% of sales, compared to $3.2 million, or 13.8% of sales, last year.

BALANCE SHEET / LIQUIDITY HIGHLIGHTS:

Thomas & Betts ended the quarter with $435.2 million in cash and cash equivalents and over $375 million of availability under its existing credit facilities. The primary use of cash during the quarter was the repurchase of an additional 500,000 shares of common stock for a total cost of $20.3 million, bringing the total share repurchase for 2010 over one million shares. Management has remaining actionable repurchase authority for up to three million shares before December 31, 2012.

As noted earlier, on October 1, 2010, the company acquired Cable Management Group, Ltd., a leading global manufacturer of cable protection systems specified in industrial and infrastructure applications, for £70 million (approximately $110 million) from available cash reserves.

Working capital was 17.1% of sales and total debt to total capitalization was 30.9% at quarter end.

FULL YEAR 2010 GUIDANCE:

“Our market outlook for the full year 2010 has not changed significantly,” said Pileggi. “We expect year-over-year growth to be driven by improved industrial and utility distribution demand while pockets of growth in certain construction segments will be offset by declines in other areas. As experienced in the third quarter, growth in the remaining months of 2010 should moderate from levels seen earlier in the year.

“We will continue to execute against our plans and dynamically manage our business to capitalize on growth opportunities and leverage operating efficiencies. We anticipate full-year 2010 sales increasing in the mid- to high-single digit range. Given this and the strength of our operating performance in the third quarter, we are raising our full-year 2010 operating earnings guidance (excluding certain items) to a range of $2.63 to $2.70 per share from the previous range of $2.50 to $2.65.”

CORPORATE OVERVIEW

Thomas & Betts Corporation (www.tnb.com) is a global leader in the design, manufacture and marketing of essential components used to manage the connection, distribution, transmission and reliability of electrical products in industrial, construction and utility applications. With a portfolio of over 200,000 products marketed under more than 45 premium brand names, Thomas & Betts products are found wherever electricity is used. Headquartered in Memphis, Tenn., Thomas & Betts reported revenues of $1.9 billion and had approximately 8,500 employees in 2009. For more information, please visit www.tnb.com.

CONFERENCE CALL AND WEBCAST INFORMATION:

Date:	Thursday, October 21, 2010
Time:	10:00 a.m. Eastern (9:00 a.m. Central)
Phone:	201-689-8341
Code:	None
URL:	www.tnb.com (audio only)
Replay:	201-612-7415, account 9517, ID 356655 (through October 28, 2010).

CAUTIONARY STATEMENT

This press release includes forward-looking statements which make assumptions regarding the company’s operations, business, economic and political environment. Actual results may be materially different from any future results expressed or implied by such forward-looking statements. 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.

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,
		2010			2009			2010			2009
Net sales		$	532,966		$	485,075		$	1,517,074		$	1,405,906
Cost of sales			363,276			337,485			1,047,743			988,965
Gross profit			169,690			147,590			469,331			416,941
Gross profit - % of net sales			31.8	%		30.4	%		30.9	%		29.7	%
Selling, general and administrative			98,772			91,957			293,797			277,605
Selling, general and administrative - % of net sales			18.5	%		18.9	%		19.3	%		19.8	%
Earnings from operations			70,918			55,633			175,534			139,336
Earnings from operations - % of net sales			13.3	%		11.5	%		11.6	%		9.9	%
Interest expense, net			(9,042	)		(8,478	)		(26,315	)		(26,317	)
Other (expense) income, net			(975	)		(2,101	)		90			1,649
Earnings before income taxes			60,901			45,054			149,309			114,668
Income tax provision			16,797			12,943			43,652			33,827
Effective tax rate			27.6	%		28.7	%		29.2	%		29.5	%
Net earnings		$	44,104		$	32,111		$	105,657		$	80,841
Net earnings per share:
	Basic earnings per share	$	0.85		$	0.62		$	2.04		$	1.54
	Diluted earnings per share	$	0.84		$	0.61		$	2.00		$	1.53
Average shares outstanding:
	Basic		51,602			52,178			51,863			52,356
	Diluted		52,641			52,858			52,912			52,987

THOMAS & BETTS CORPORATION AND SUBSIDIARIES
Segment Information
(In thousands)
(Unaudited)
		Quarter Ended						Year to Date
		September 30,			September 30,			September 30,			September 30,
		2010			2009			2010			2009
Net sales:
	Electrical	$	453,905		$	410,872		$	1,280,991		$	1,163,062
	Steel Structures		57,232			50,922			166,753			167,817
	HVAC		21,829			23,281			69,330			75,027
	Total net sales	$	532,966		$	485,075		$	1,517,074		$	1,405,906
Segment earnings:
	Electrical	$	92,259		$	78,267		$	246,007		$	194,480
	Steel Structures		11,092			10,082			29,027			36,630
	HVAC		2,868			3,221			9,466			11,505
	Total reportable segment earnings	$	106,219		$	91,570		$	284,500		$	242,615
Corporate expense			(12,615	)		(14,908	)		(40,205	)		(37,916	)
Depreciation and amortization expense			(20,446	)		(18,424	)		(60,031	)		(56,417	)
Share-based compensation expense			(2,240	)		(2,605	)		(8,730	)		(8,946	)
Interest expense, net			(9,042	)		(8,478	)		(26,315	)		(26,317	)
Other (expense) income, net			(975	)		(2,101	)		90			1,649
Earnings before income taxes		$	60,901		$	45,054		$	149,309		$	114,668
Segment earnings - % of net sales:
	Electrical		20.3	%		19.0	%		19.2	%		16.7	%
	Steel Structures		19.4	%		19.8	%		17.4	%		21.8	%
	HVAC		13.1	%		13.8	%		13.7	%		15.3	%
	Total		19.9	%		18.9	%		18.8	%		17.3	%

THOMAS & BETTS CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
(Unaudited)
		September 30,		December 31,
		2010		2009
	ASSETS
Current assets:
	Cash and cash equivalents	$	435,221	$	478,613
	Restricted cash		2,919		2,918
	Receivables, net		271,678		197,640
	Inventories		243,201		209,268
	Other current assets		51,610		55,544
Total current assets			1,004,629		943,983
Net property, plant and equipment			313,176		296,820
Goodwill			942,434		902,053
Other intangible assets			292,937		243,930
Other assets			64,798		66,621
	Total assets	$	2,617,974	$	2,453,407
	LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Current maturities of long-term debt	$	718	$	522
	Accounts payable		171,702		149,556
	Accrued liabilities		138,268		113,654
	Income taxes payable		25,076		8,849
Total current liabilities			335,764		272,581
Long-term debt, net of current maturities			639,103		638,014
Other long-term liabilities			212,221		201,603
Shareholders' equity			1,430,886		1,341,209
	Total liabilities and shareholders' equity	$	2,617,974	$	2,453,407

THOMAS & BETTS CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
		Year to Date
		September 30,			September 30,
		2010			2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings		$	105,657		$	80,841
Adjustments:
Depreciation and amortization			60,031			56,417
Share-based compensation expense			8,730			8,946
Deferred income taxes			(6,491	)		(1,658	)
Changes in operating assets and liabilities, net (a):
	Receivables		(56,707	)		(7,863	)
	Inventories		(26,463	)		51,878
	Accounts payable		12,258			(45,798	)
	Accrued liabilities		20,095			(24,857	)
	Income taxes payable		21,885			7,065
	Pension and other postretirement benefits		8,914			22,376
	Other		(2,989	)		(1,920	)
Net cash provided by (used in) operating activities			144,920			145,427
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of businesses, net of cash acquired			(98,910	)		-
Purchases of property, plant and equipment			(22,253	)		(32,250	)
Restricted cash used for change in control payments			(1	)		5,054
Other			38			953
Net cash provided by (used in) investing activities			(121,126	)		(26,243	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Revolving credit facility proceeds (repayments), net			-			95,000
Repayment of debt and other borrowings			(36,092	)		(148,288	)
Stock options exercised			5,162			451
Repurchase of common shares			(42,853	)		(24,907	)
Other			942			19
Net cash provided by (used in) financing activities			(72,841	)		(77,725	)
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS			5,655			23,476
Net increase (decrease) in cash and cash equivalents			(43,392	)		64,935
Cash and cash equivalents at beginning of period			478,613			292,494
Cash and cash equivalents at end of period		$	435,221		$	357,429
Cash payments for interest		$	23,769		$	26,527
Cash payments for income taxes		$	27,031		$	26,251
(a) Net of foreign exchange and acquisition effects

THOMAS & BETTS CORPORATION AND SUBSIDIARIES
Selected Information
(In millions, except E.P.S.)
(Unaudited)
Reconciliation of Excluded Items
		Consolidated
		Quarter Ended
		September 30, 2010						September 30, 2009
		Net-of-Tax			E.P.S.			Net-of-Tax		E.P.S.
Reported net earnings		$	44.1		$	0.84		$	32.1	$	0.61
Excluded Items:
	Release of a tax reserve for resolution of outstanding tax issue		(1.5	)		(0.03	)		-		-
	Environmental remediation charge (a)		-			-			2.5		0.05
	Total excluded items		(1.5	)		(0.03	)		2.5		0.05
Net earnings excluding items		$	42.6		$	0.81		$	34.6	$	0.66
(a) Charge is reflected in Segment Information as Corporate expense.
Note: The Selected Information above is not calculated in accordance with Generally Accepted Accounting Principles (GAAP) and should not be considered a substitute for or superior to financial measures in accordance with GAAP.  Management believes these non-GAAP financial measures provide investors and our management with additional useful information to measure and forecast our liquidity and operating results and to compare our liquidity and operating results on a more consistent basis against that of other companies in the markets that we serve.

THOMAS & BETTS CORPORATION AND SUBSIDIARIES
Selected Information (continued)
(In thousands, except ratios)
(Unaudited)
Reconciliation of Free Cash Flow
	Year to Date
	September 30,			September 30,
	2010			2009
Net cash provided by (used in) operating activities	$	144,920		$	145,427
Less: Purchases of property, plant and equipment		(22,253	)		(32,250	)
Free Cash Flow	$	122,667		$	113,177
Reconciliation of Working Capital as a Percentage of Sales
	September 30,			December 31,			September 30,
	2010			2009			2009
Receivables, net	$	271,678		$	197,640		$	243,424
Inventories		243,201			209,268			231,134
Accounts payable		(171,702	)		(149,556	)		(138,882	)
Working capital	$	343,177		$	257,352		$	335,676
Net sales - rolling 4 quarters	$	2,009,868		$	1,898,700		$	1,977,230
Working capital as a percentage of sales		17.1	%		13.6	%		17.0	%
Reconciliation of Total Debt-to-Total Capitalization
	September 30,			December 31,
	2010			2009
Current maturities of long-term debt	$	718		$	522
Long-term debt, net of current maturities		639,103			638,014
Total debt		639,821			638,536
Shareholders' equity		1,430,886			1,341,209
Total capitalization	$	2,070,707		$	1,979,745
Total debt-to-total capitalization		30.9	%		32.3	%
Note: The Selected Information above is not calculated in accordance with Generally Accepted Accounting Principles (GAAP) and should not be considered a substitute for or superior to financial measures in accordance with GAAP. Management believes these non-GAAP financial measures provide investors and our management with additional useful information to measure and forecast our liquidity and operating results and to compare our liquidity and operating results on a more consistent basis against that of other companies in the markets that we serve.

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