-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AEZvGGkbb7xEEsN+p0zYFdSdslqIIeIXGknwb4jiUVqTjIw8OkBRuz+N8YIND+4n wIW7+T3CTKFCtTxCSLyvuQ== 0000912057-99-009418.txt : 19991216 0000912057-99-009418.hdr.sgml : 19991216 ACCESSION NUMBER: 0000912057-99-009418 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19991214 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19991215 FILER: COMPANY DATA: COMPANY CONFORMED NAME: THOMAS & BETTS CORP CENTRAL INDEX KEY: 0000097854 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC LIGHTING & WIRING EQUIPMENT [3640] IRS NUMBER: 221326940 STATE OF INCORPORATION: TN FISCAL YEAR END: 1229 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-04682 FILM NUMBER: 99774617 BUSINESS ADDRESS: STREET 1: 8155 T&B BOULEVARD CITY: MEMPHIS STATE: TN ZIP: 38125 BUSINESS PHONE: 9012527766 MAIL ADDRESS: STREET 1: 1555 LYNNFIELD ROAD CITY: MEMPHIS STATE: TN ZIP: 38119 8-K 1 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report: December 14, 1999 (Date of earliest event reported) THOMAS & BETTS CORPORATION (Exact name of registrant as specified in its charter) Tennessee 1-4682 (State or Other Jurisdiction (Commission File Number) of Incorporation) 22-1326940 (IRS Employer Identification No.) 8155 T&B Boulevard Memphis, Tennessee 38125 (Address of Principal (ZIP Code) Executive Offices) Registrant's Telephone Number, Including Area Code: (901) 252-8000 ITEM 5. OTHER EVENTS On December 14, 1999, Thomas & Betts Corporation (the "Registrant") announced in the press release attached as Exhibit 20 to this report and incorporated herein by reference that it estimates its fourth-quarter earnings per share could be as much as 40% below the current First Call consensus earnings expectation of $0.97. Thomas & Betts believes that a conservative estimate of its fourth-quarter 1999 net sales, given the unusual factors described in the press release, is approximately $640 million. In 1998's fourth quarter the Registrant reported net sales of $592 million. As described in the press release, the TOPS order entry conversion issues and additional costs identified in an accelerated year-end accounting close process are expected to impact the Registrant's business segments differently. The Registrant's Electrical segment, which ships the vast majority of its sales through the Registrant's distribution centers, will be more heavily impacted by the TOPS conversion than the accelerated-close issues. The Registrant expects that its Electronic OEM and Communications segments will be more heavily impacted by the accelerated-close issues than the TOPS conversion. An effect of the TOPS conversion is higher-than-normal backlog of shipments of approximately $50 million, which the Registrant is seeking to eliminate in the fourth quarter. The Registrant expects any backlog existing at the end of its fiscal year will ship in the first quarter of 2000. The remainder of the TOPS impact is expected to result from cancelled orders and freight expediting and other associated costs. Within this conservative forecast of its fourth quarter, the Registrant projects Electrical segment earnings at approximately $44 million and Electronic OEM and Communications segment earnings at approximately $16 million. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits 20 Press Release of the Registrant dated December 14, 1999. SIGNATURE Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Thomas & Betts Corporation (Registrant) By: /s/ JERRY KRONENBERG Jerry Kronenberg Title: Vice President-General Counsel and Secretary Date: December 14, 1999 EXHIBIT INDEX
EXHIBIT DESCRIPTION OF EXHIBITS ------- ----------------------- 20 Press Release of the Registrant dated December 14, 1999.
EX-20 2 EXHIBIT 20 Thomas & Betts Corporation 8155 T&B Boulevard Memphis, Tennessee 38125 Contact: Renee Johansen (901) 252-5466 FOR IMMEDIATE RELEASE Thomas & Betts Comments on Fourth Quarter MEMPHIS, Tenn. - December 14, 1999 Thomas & Betts Corporation (NYSE:TNB) today announced that its fourth quarter earnings per share (EPS) could be as much as 40% below the current First Call consensus earnings expectation of $0.97. That estimate is preliminary as the company records it highest sales of the quarter in December, and also hopes to recover some of the current shortfall before yearend. The unusual factors impacting the fourth-quarter results are: (1) On November 1, 1999, Thomas & Betts installed the final building block of its business-to-business (B2B) E-commerce strategy, a world-wide web-enabled order processing system (TOPS). Difficulties experienced in the start-up of that new system have caused shipping delays, order cancellations and freight expediting and other associated costs. The company estimates that as much as two-thirds of its earnings shortfall will be related to the TOPS implementation. Despite the effect of delayed and cancelled sales, the company expects its growth in orders to fall in line with analysts' expectations. In commenting on recent business trends, the company said the orders for the three months ended November 1999 were 15% higher than the year-earlier period overall, including the impact of late 1998 and 1999 acquisitions, and 8% greater without the impact of acquisitions and divestitures. Orders of the company's Electrical segment in that same period were 32% higher with acquisitions and increased 8% on a pre-acquisition basis. Orders of the Electronic OEM segment rose 8%, while Communications segment orders decreased 24%, due to the sale of the company's cable-television amplifier product lines. The latter two segments had no acquisitions within the last year. (2) As part of an accelerated year-end accounting close process to validate account balances, the company identified additional costs, such as unanticipated inventory losses, that it is recognizing in the current quarter's results. Identification of those issues was also accelerated by use of the company's new financial reporting system, which is now being utilized by decentralized financial management for better control of smaller, more manageable portions of the company's business. "While we are disappointed by the short-term impact of our systems' conversions, we are more convinced than ever in the correctness of our long-term vision for our company's future in the E-Commerce world," commented Clyde R. Moore, president and chief executive officer. "Our thoughts on E-Commerce have been confirmed in numerous discussions, including those with Grainger and General Electric." "We have spent the past three years converting all of our corporate systems to enable us to lead our industry in E-commerce. The undertaking was immense, but timing was critical as the Internet is changing the business model at so fast a pace. Our business has gone through a radical transformation for an industrial company and this has not been an easy process. While our numerous conversions have caused some short-term disruption to our business, we believe our investments in these business systems will allow us to reward our shareholders in the future. Our analysis indicates that these conversion issues and their impact on our earnings are one-time in nature, and we have no reason to alter our previously budgeted 2000 earnings projection. At this time we still expect to deliver on the current First Call consensus earnings expectation for 2000 of $3.67," concluded Moore. Thomas & Betts plans to release fourth quarter results on February 4, 2000. In 1998's fourth quarter, Thomas & Betts had EPS of $0.81. Thomas & Betts will host a conference call Tuesday evening, December 14, at 7:15 EDT to discuss these comments. Interested parties should call 212-346-6380, reservation number 13862952 prior to that time to participate. The replay number is 800-633-8284, reservation number, 13862952 available until Thursday, December 16, 1999 at 7:00 p.m. EST. Forward-looking statements in this news release are subject to many uncertainties in the company's operations and business environments. Such uncertainties, which are discussed further in the company's quarterly filings with the Securities and Exchange Commission, may cause the actual results of the company to be materially different from any future results expressed or implied by such forward-looking statements. Thomas & Betts is a leading producer of connectors and components for worldwide electrical and electronic markets. Visit Thomas & Betts on the World Wide Web at www.tnb.com.
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