July 29 (Reuters) - Electrical equipment maker Hubbell
raised its full-year profit forecast on Tuesday,
betting on strong demand for products used by data centers
needed for artificial intelligence.
The development of data centers is a crucial step in
building key infrastructure required for tackling complex tasks
employed by generative AI.
The Connecticut-based company, which makes and sells
products including wiring and lighting systems, expects 2025
adjusted profit to be between $17.65 and $18.15 per share,
compared with its earlier forecast of $17.35 to $17.85 per
share.
Net sales in its electrical solutions segment, which sells
wiring devices and other electrical products, rose 4% during the
second quarter, "driven by strength in data center markets".
Its utility solutions segment posted net sales increase of
1%. That was aided by 7% growth in the power grid infrastructure
end-markets, which offset a decline in sales for grid automation
products during the quarter.
The company's total net sales for quarter ended June 30 was
$1.48 billion, up 2.2% from a year earlier. Analysts on average
estimated $1.51 billion, according to data compiled by LSEG.
It posted an adjusted profit of $4.93 per share, compared
with the estimate of $4.41 per share.