$2.54 Earnings Per Diluted Share Includes $1.63 Net Benefit from Sale of Equity Interest, Favorable Legal Settlement and Non-Cash Tax Charge

MEMPHIS, Tenn.--(BUSINESS WIRE)--Thomas & Betts Corporation (NYSE: TNB) today reported second quarter 2008 net earnings of $147.8 million or $2.54 per diluted share. Net earnings include a $1.74 per diluted share gain on the previously announced sale of the company’s minority interest in privately held Leviton Manufacturing Company as well as a $0.13 per diluted share benefit from recently settled legacy legal claims. Net income also includes an out-of-period, non-cash tax charge of $14.0 million ($0.24 per diluted share) related to deferred income taxes. In the second quarter of 2007, net earnings were $46.6 million or $0.80 per diluted share.

Second quarter net sales were $641.3 million, up $134.1 million or 26.4 percent compared to last year. Acquisitions contributed $114.1 million or 22.5 percent to the increase while foreign currency benefited sales by approximately $18 million or four percent. Commodity- and energy-related price increases offset lower underlying sales volumes in markets affected by the slowdown in residential construction.

“Thomas & Betts delivered a strong financial performance in the second quarter with excellent margin performance in our underlying businesses and continuing improvement in our acquired businesses,” said Dominic J. Pileggi, chairman and chief executive officer. “Segment earnings were a robust 20 percent of sales despite slight volume declines in our base electrical business and higher commodity and energy costs.

“Our well-balanced product portfolio and proven operating discipline - coupled with the anticipated savings from acquisition integration activities - leave us confident in the ability of our businesses to deliver strong earnings for the full year 2008.”

Second quarter 2008 gross profit was $200.0 million or 31.2 percent of sales, up from 30.5 percent of sales in the prior-year period largely as a result of acquisitions.

Selling, general and administrative (SG&A) expense was $100.5 million or 15.7 percent of sales compared to $84.5 million or 16.6 percent of sales last year. The decrease as a percent of sales reflects the $12 million benefit from the legal settlement. Second quarter 2008 SG&A also includes approximately $7 million of acquisition-related depreciation and amortization expenses.

Second quarter 2008 earnings from operations were up $29.2 million to $99.5 million from $70.3 million in the prior-year period. The increase was due primarily to acquisitions and the legal settlement benefit.

Year-over-year net interest expense increased $8.3 million in the second quarter, largely as a result of funding for acquisitions.

The effective income tax rate in the second quarter was 42.3 percent, a significant increase from last year’s 31.0 percent rate due to the gain on the sale of the company’s minority interest in Leviton Manufacturing Company and the previously noted out-of-period, non-cash tax charge.

Reportable segment earnings increased 27.6 percent to $127.5 million in the second quarter 2008, reflecting the impact of the acquisitions. As a percent of sales, segment earnings were 19.9 percent compared to 19.7 percent last year. Improved performance in the underlying electrical business benefited segment earnings as a percent of sales.

Second quarter Electrical segment sales increased $132.8 million, or 31.8 percent, to $550.8 million compared to the second quarter 2007. Acquisitions contributed $114.1 million or 27.3 percent while foreign currency benefited sales by approximately $17 million or four percent. Commodity- and energy-related price increases offset lower underlying sales volumes in markets affected by the slowdown in residential construction such as retail, utility distribution and light commercial construction.

Second quarter 2008 Electrical segment earnings were $110.8 million or 20.1 percent of sales. This compares to $84.9 million or 20.3 percent of sales last year. Acquisitions contributed $21.8 million of the $25.9 million earnings increase and had a dampening impact on Electrical segment earnings as a percent of sales.

Sales in the Steel Structures segment were $56.4 million, approximately flat with the prior-year period. Segment earnings were $10.5 million, or 18.7 percent of sales compared to $10.0 million or 17.4 percent of sales in the second quarter 2007. Improved project mix led to the earnings increase.

HVAC segment sales increased 6.1 percent to $34.1 million in the second quarter 2008 due to the favorable impact of price increases taken to offset higher operating costs and foreign currency. HVAC segment earnings were $6.2 million or 18.1 percent of sales, compared to $5.1 million or 15.9 percent of sales last year. Improved pricing and product mix contributed to stronger segment earnings.

Corporate expense reflects the previously noted $12 million benefit from the legal settlement.

For the six months ended June 30, 2008, net sales increased by $255.0 million, or 26.0 percent, to $1,236.8 million compared to $981.8 million in the first half of 2007. Acquisitions contributed $222.8 million or 22.7 percent to the increase while foreign currency benefited sales by approximately $40 million or four percent for the first half of 2008. Underlying sales volumes declined slightly year over year as demand for industrial products did not fully offset weakness in markets affected by the slowdown in residential construction.

Reportable segment earnings were $239.3 million, up 24.3 percent compared to $192.5 million in the first half of 2007. Acquisitions contributed $38.8 million of the $46.8 million increase. As a percent of sales, segment earnings were 19.4 percent in 2008, essentially flat with 2007.

First half 2008 net earnings were $186.1 million or $3.20 per diluted share including the $1.63 per diluted share net benefit from the previously noted Leviton sale, favorable legal settlement and non-cash tax charge. Net earnings also included $0.04 per share of non-recurring, acquisition-related expenses and $0.14 per share of acquisition-related amortization expense. In the first half of 2007, net earnings were $83.7 million or $1.42 per diluted share which included an $0.08 per diluted share legal charge.

Thomas & Betts ended the second quarter 2008 with $665 million in total debt, down from $811 million at year end 2007. At June 30, 2008, cash was $288 million compared to $150 million at December 31, 2007.

Major sources of cash in the first half of 2008 included the gross proceeds from the sale of the company’s minority interest in Leviton Manufacturing Company. Major uses of cash in 2008 included the repayment of $115 million of notes in the second quarter and approximately $90 million for two acquisitions completed in the first quarter.

“On balance, we believe that current market conditions will continue in the second half and that demand in industrial markets will help offset weakness in residential construction-related markets,” said Pileggi. “In addition, commodity- and energy-related price increases will be more significant in the second half.

“We remain confident that our core businesses and acquisitions will continue to deliver strong earnings growth. We are raising our full year earnings guidance to $5.50 to $5.65 per diluted share, primarily due to the $1.50 net benefit related to the gain from the Leviton sale and non-cash tax charge. The increased guidance also includes approximately $0.07 per share for the benefit of lower net interest expense and a lower effective income tax rate. Previously our guidance was $3.93 to $4.08 per share including the $0.13 per diluted share gain from the legal settlement.”

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:

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.

Thomas & Betts will hold a conference call/webcast to discuss the company’s second quarter 2008 results on Wednesday, July 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 Wednesday, July 30, 2008. To access the replay, please call 201-612-7415, account number 9517, pass code 290715.

THOMAS & BETTS CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations (In thousands, except per share data) (Unaudited)

	Quarter Ended						Year to Date

	June 30,			June 30,			June 30,			June 30,
	2008			2007			2008			2007


Net sales	$	641,317		$	507,238		$	1,236,821		$	981,790

Cost of sales		441,342			352,431			850,585			682,118
Gross profit		199,975			154,807			386,236			299,672
Gross profit - % of net sales		31.2	%		30.5	%		31.2	%		30.5	%

Selling, general and administrative		100,489			84,532			216,774			171,861
Selling, general and administrative - % of net sales		15.7	%		16.6	%		17.5	%		17.5	%


Earnings from operations		99,486			70,275			169,462			127,811
Earnings from operations - % of net sales		15.5	%		13.9	%		13.7	%		13.0	%

Interest expense, net		(11,768	)		(3,446	)		(24,100	)		(6,997	)
Other (expense) income, net		(670	)		640			(1,947	)		480
Gain on sale of equity interest		169,684			-			169,684			-

Earnings before income taxes		256,732			67,469			313,099			121,294

Income tax provision		108,692			20,916			126,898			37,601
Effective tax rate		42.3	%		31.0	%		40.5	%		31.0	%

Net earnings from continuing operations		148,040			46,553			186,201			83,693

Loss from discontinued operations, net		(200	)		-			(109	)		-

Net earnings	$	147,840		$	46,553		$	186,092		$	83,693

Basic earnings per share:
Continuing operations	$	2.56		$	0.81		$	3.22		$	1.44
Discontinued operations		-			-			-			-
Net earnings	$	2.56		$	0.81		$	3.22		$	1.44


Diluted earnings per share:
Continuing operations	$	2.54		$	0.80		$	3.20		$	1.42
Discontinued operations		-			-			-			-
Net earnings	$	2.54		$	0.80		$	3.20		$	1.42

Average shares outstanding:
Basic		57,819			57,649			57,788			58,191
Diluted		58,246			58,459			58,230			58,980

THOMAS & BETTS CORPORATION AND SUBSIDIARIES Segment Information (In thousands) (Unaudited)

	Quarter Ended						Year to Date

	June 30,			June 30,			June 30,			June 30,
	2008			2007			2008			2007

Net sales:
Electrical	$	550,795		$	418,033		$	1,059,565		$	807,199
Steel Structures		56,431			57,082			108,391			110,112
HVAC		34,091			32,123			68,865			64,479

Total net sales	$	641,317		$	507,238		$	1,236,821		$	981,790


Segment earnings:
Electrical	$	110,826		$	84,892		$	206,947		$	161,736
Steel Structures		10,545			9,955			20,587			19,945
HVAC		6,160			5,123			11,795			10,812

Total reportable segment earnings	$	127,531		$	99,970		$	239,329		$	192,493

Corporate expense		(3,572	)		(13,852	)		(16,834	)		(31,294	)
Depreciation and amortization expense		(21,158	)		(12,772	)		(43,198	)		(25,116	)
Share-based compensation expense		(3,315	)		(3,071	)		(9,835	)		(8,272	)
Interest expense, net and other (expense) income, net		(12,438	)		(2,806	)		(26,047	)		(6,517	)
Gain on sale of equity interest		169,684			-			169,684			-

Earnings before income taxes	$	256,732		$	67,469		$	313,099		$	121,294


Segment earnings - % of net sales:
Electrical		20.1	%		20.3	%		19.5	%		20.0	%
Steel Structures		18.7	%		17.4	%		19.0	%		18.1	%
HVAC		18.1	%		15.9	%		17.1	%		16.8	%
Total		19.9	%		19.7	%		19.4	%		19.6	%

THOMAS & BETTS CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (In thousands) (Unaudited)

	June 30,		December 31,
	2008		2007

ASSETS

Current assets:
Cash and cash equivalents	$	288,085	$	149,926
Restricted cash		8,500		16,683
Receivables, net		339,652		280,948
Inventories		324,839		271,989
Other current assets		55,746		79,891
Assets of discontinued operations		101,401		106,478
Total current assets		1,118,223		905,915

Net property, plant and equipment		312,680		305,959
Goodwill		924,461		873,574
Other intangible assets		322,215		299,370
Investments in unconsolidated companies		5,360		115,300
Other assets		65,109		67,668

Total assets	$	2,748,048	$	2,567,786



LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
Current maturities of long-term debt	$	152,142	$	116,157
Accounts payable		206,508		180,333
Accrued liabilities		158,377		143,606
Income taxes payable		100,281		10,731
Liabilities of discontinued operations		24,338		18,146
Total current liabilities		641,646		468,973

Long-term debt		512,364		695,048
Other long-term liabilities		163,837		174,831

Shareholders' equity		1,430,201		1,228,934

Total liabilities and shareholders' equity	$	2,748,048	$	2,567,786

THOMAS & BETTS CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows (In thousands) (Unaudited)

	Year to Date

	June 30,			June 30,
	2008			2007

CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	186,092		$	83,693
Adjustments:
Depreciation and amortization		43,198			25,116
Share-based compensation expense		9,831			8,272
Gain on sale of equity interest		(169,684	)		-
Changes in operating assets and liabilities, net (a):
Receivables		(54,371	)		(52,440	)
Inventories		(37,089	)		(4,351	)
Accounts payable		30,180			15,047
Accrued liabilities		(17,773	)		8,588
Income taxes payable		89,658			4,504
Lamson & Sessions change in control payments		(12,685	)		-
Other		17,123			2,361
Net cash provided by (used in) operating activities		84,480			90,790

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment		(18,690	)		(17,628	)
Purchases of businesses		(90,571	)		-
Proceeds from sale of equity interest, net		280,000			-
Obligation from sale of equity interest		20,000			-
Restricted cash used for change in control payments		8,183			-
Other		245			296
Net cash provided by (used in) investing activities		199,167			(17,332	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term debt, net		(146,407	)		(197	)
Repurchase of common shares		-			(132,958	)
Stock options exercised		1,068			18,778
Other		583			5,062
Net cash provided by (used in) financing activities		(144,756	)		(109,315	)

EFFECT OF EXCHANGE RATE ON CASH		(732	)		3,041

Net increase (decrease) in cash and cash equivalents		138,159			(32,816	)
Cash and cash equivalents at beginning of period		149,926			370,968
Cash and cash equivalents at end of period	$	288,085		$	338,152

Cash payments for interest	$	26,921		$	13,760
Cash payments for income taxes	$	27,468		$	26,678


(a) Net of foreign exchange and acquisition effects

THOMAS & BETTS CORPORATION AND SUBSIDIARIES
Impact of 2007 and 2008 Acquisitions
(In thousands)
(Unaudited)

	Impact on
	Earnings from Operations

	Quarter Ended			Year to Date
	June 30,			June 30,
	2008			2008


Net sales	$	114,137		$	222,762

Cost of sales		76,441			150,534
Gross profit		37,696			72,228
Gross profit - % of net sales		33.0	%		32.4	%

Selling, general and administrative		24,155			51,397
Selling, general and administrative - % of net sales		21.2	%		23.1	%


Earnings from operations	$	13,541		$	20,831
Earnings from operations - % of net sales		11.9	%		9.4	%


	Additional Information (a)

Depreciation and amortization expense	$	8,150		$	17,498

Share-based compensation expense	$	136		$	451

(a) Excludes non-recurring acquisition integration and related expenses of $3.2 million incurred in the first quarter.

	Impact on Electrical Segment Earnings
		Quarter Ended									Year to Date
		June 30, 2008									June 30, 2008
		Base			Acquisitions			Total			Base			Acquisitions			Total


Net sales		$	436,658		$	114,137		$	550,795		$	836,803		$	222,762		$	1,059,565


Segment earnings		$	88,999		$	21,827		$	110,826		$	168,167		$	38,780		$	206,947
Segment earnings - % of net sales			20.4	%		19.1	%		20.1	%		20.1	%		17.4	%		19.5	%