##### Table of Contents









UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


FORM 10-Q


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 
|          
|           |  | For the quarterly period ended March 31, 2006                                               
|or        
|          
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|          
|           |  | For the transition period
    from            to                                            

Commission file number 1-4682


Thomas & Betts Corporation


(Exact name of registrant as specified in its charter)


|                                                                    |  |                                         
|------------------------------------------------------------------- |  | ----------------------------------------
|Tennessee                                                           |  | 22-1326940                              
|(State or other jurisdiction of
     incorporation or organization) |  | (I.R.S. Employer
    Identification No.)
|                                                                   
|8155 T&B Boulevard                                                  |  |                                         
|Memphis, Tennessee                                                  |  | 38125                                   
|(Address of principal
    executive offices)                        |  | (Zip Code)                              

(901) 252-8000


(Registrants telephone number, including area code)


þ o


12b-2


þ o o


12b-2 o þ




|                             |  |                    |            | 
|---------------------------- |  | ------------------ | ---------- | 
|                             |  | Outstanding Shares |           
|Title of Each Class          |  | at May 1, 2006     |           
|                             |  |                    |           
|Common Stock, $.10 par value |  |                    | 62,415,490 | 









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##### 










THOMAS & BETTS CORPORATION AND SUBSIDIARIES


TABLE OF CONTENTS


|                                                                |  |                                                                                           |                                                                                                        |      |    |   | 
|--------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------ | ---- | -- | - | 
|                                                                |  |                                                                                           |                                                                                                        | Page |   
|                                                                |  |                                                                                           |                                                                                                        |      |   
|PART I. FINANCIAL
    INFORMATION                              
|ITEM 1.                                                         |  | Financial Statements:                                                                     |                                                                                                        |      |    |  
|                                                                |  |                                                                                           | Consolidated Statements of Operations for
    the Quarters Ended March 31, 2006 and March 31,
    2005 |      |    | 3 | 
|                                                                |  |                                                                                           | Consolidated Balance Sheets as of
    March 31, 2006 and December 31, 2005                             |      |    | 4 | 
|                                                                |  |                                                                                           | Consolidated Statements of Cash Flows for
    the Quarters Ended March 31, 2006 and March 31,
    2005 |      |    | 5 | 
|                                                                |  |                                                                                           | Notes to Consolidated Financial
    Statements                                                         |      |    | 6 | 
|ITEM 2.                                                         |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations |                                                                                                        |      | 19 |  
|ITEM 3.                                                         |  | Quantitative and Qualitative Disclosures
    About Market Risk                            |                                                                                                        |      | 28 |  
|ITEM 4.                                                         |  | Controls and Procedures                                                                   |                                                                                                        |      | 28 |  
|PART II. OTHER INFORMATION                                     
|ITEM 1.                                                         |  | Legal Proceedings                                                                         |                                                                                                        |      | 29 |  
|ITEM 1A.                                                        |  | Risk Factors                                                                              |                                                                                                        |      | 29 |  
|ITEM 5.                                                         |  | Other Information                                                                         |                                                                                                        |      | 29 |  
|ITEM 6.                                                         |  | Exhibits                                                                                  |                                                                                                        |      | 29 |  
|SIGNATURE                                                       |  |                                                                                           | 30                                                                                                     |     
|EXHIBIT INDEX                                                   |  |                                                                                           | 31                                                                                                     |     
|Statement Re: Computation of Ratio of Earnings to Fixed Charges
|Certification of Principal Executive Officer                   
|Certification of Principal Financial Officer                   
|Certification Pursuant to Rule 13a-14(b) or Rule 15d-14(b)     



1



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##### Table of Contents



CAUTION REGARDING FORWARD-LOOKING STATEMENTS




2



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##### Table of Contents






PART I. FINANCIAL INFORMATION







|        |                     
|------- | --------------------
|Item 1. | Financial Statements




THOMAS & BETTS CORPORATION AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF OPERATIONS


(In thousands, except per share data)


(Unaudited)


|                                     |                              |                |         |         |        |   |         |         |        | 
|------------------------------------ | ---------------------------- | -------------- | ------- | ------- | ------ | - | ------- | ------- | ------ | 
|                                     |                              | Quarters Ended |        
|                                     |                              | March 31,      |        
|                                     |                              |                |        
|                                     |                              | 2006           |         |         | 2005   |  
|                                     |                              |                |         |         |        |  
|Net sales                            |                              | $              | 441,802 |         |        | $ | 392,186 |        
|Cost of sales                        |                              |                | 305,519 |         |        |   | 281,140 |        
|                                     |                              |                |         |         |        |  
|                                     | Gross profit                 |                |         | 136,283 |        |   |         | 111,046 |       
|Selling, general and administrative  |                              |                | 78,528  |         |        |   | 69,350  |        
|                                     |                              |                |         |         |        |  
|                                     | Earnings from operations     |                |         | 57,755  |        |   |         | 41,696  |       
|Income from unconsolidated companies |                              |                | 174     |         |        |   | 309     |        
|Interest expense, net                |                              |                | (3,467  | )       |        |   | (7,160  | )      
|Other (expense) income, net          |                              |                | 186     |         |        |   | (467    | )      
|                                     |                              |                |         |         |        |  
|                                     | Earnings before income taxes |                |         | 54,648  |        |   |         | 34,378  |       
|Income tax provision                 |                              |                | 15,848  |         |        |   | 9,970   |        
|                                     |                              |                |         |         |        |  
|                                     |                              | Net earnings   |         | $       | 38,800 |   |         | $       | 24,408 | 
|                                     |                              |                |         |         |        |  
|Earnings per share:                  |                              |                |         |         |        |   |         |        
|                                     | Basic                        |                | $       | 0.63    |        |   | $       | 0.41    |       
|                                     |                              |                |         |         |        |  
|                                     | Diluted                      |                | $       | 0.62    |        |   | $       | 0.40    |       
|                                     |                              |                |         |         |        |  
|Average shares outstanding:          |                              |                |         |         |        |   |         |        
|                                     | Basic                        |                |         | 61,432  |        |   |         | 59,333  |       
|                                     | Diluted                      |                |         | 62,540  |        |   |         | 60,324  |       



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THOMAS & BETTS CORPORATION AND SUBSIDIARIES





CONSOLIDATED BALANCE SHEETS


(In thousands)


(Unaudited)


|                                           |                                         |                 |           |          |              |   |           |          |        | 
|------------------------------------------ | --------------------------------------- | --------------- | --------- | -------- | ------------ | - | --------- | -------- | ------ | 
|                                           |                                         | March 31,       |           |          | December 31, |  
|                                           |                                         | 2006            |           |          | 2005         |  
|                                           |                                         |                 |           |          |              |  
|ASSETS                                    
|Current Assets                             |                                         |                 |           |          |              |   |           |         
|                                           | Cash and cash equivalents               |                 | $         | 391,724  |              |   | $         | 216,742  |       
|                                           | Marketable securities                   |                 |           | 521      |              |   |           | 292,154  |       
|                                           | Receivables, net                        |                 |           | 209,969  |              |   |           | 185,391  |       
|                                           | Inventories:                            |                 |           |          |              |   |           |          |       
|                                           |                                         | Finished goods  |           |          | 99,096       |   |           |          | 91,597 | 
|                                           |                                         | Work-in-process |           |          | 33,242       |   |           |          | 29,285 | 
|                                           |                                         | Raw materials   |           |          | 86,142       |   |           |          | 77,225 | 
|                                           |                                         |                 |           |          |              |  
|                                           | Total inventories                       |                 |           | 218,480  |              |   |           | 198,107  |       
|                                           |                                         |                 |           |          |              |  
|                                           | Deferred income taxes                   |                 |           | 42,134   |              |   |           | 40,293   |       
|                                           | Prepaid expenses                        |                 |           | 16,752   |              |   |           | 17,455   |       
|                                           |                                         |                 |           |          |              |  
|Total Current Assets                       |                                         |                 | 879,580   |          |              |   | 950,142   |         
|                                           |                                         |                 |           |          |              |  
|Property, plant and equipment:             |                                         |                 |           |          |              |   |           |         
|                                           | Land                                    |                 |           | 16,848   |              |   |           | 15,571   |       
|                                           | Buildings                               |                 |           | 176,788  |              |   |           | 176,054  |       
|                                           | Machinery and equipment                 |                 |           | 615,396  |              |   |           | 607,847  |       
|                                           | Construction-in-progress                |                 |           | 13,618   |              |   |           | 14,408   |       
|                                           |                                         |                 |           |          |              |  
|Gross property, plant and equipment        |                                         |                 | 822,650   |          |              |   | 813,880   |         
|                                           | Less accumulated depreciation           |                 |           | (553,602 | )            |   |           | (546,854 | )     
|                                           |                                         |                 |           |          |              |  
|Net property, plant and equipment          |                                         |                 | 269,048   |          |              |   | 267,026   |         
|                                           |                                         |                 |           |          |              |  
|Goodwill                                   |                                         |                 | 463,657   |          |              |   | 462,810   |         
|Investments in unconsolidated companies    |                                         |                 | 115,914   |          |              |   | 115,665   |         
|Deferred income taxes                      |                                         |                 | 21,038    |          |              |   | 20,061    |         
|Prepaid pension plan costs                 |                                         |                 | 76,356    |          |              |   | 76,187    |         
|Other assets                               |                                         |                 | 29,976    |          |              |   | 28,505    |         
|                                           |                                         |                 |           |          |              |  
|Total Assets                               |                                         | $               | 1,855,569 |          |              | $ | 1,920,396 |         
|                                           |                                         |                 |           |          |              |  
|                                          
|LIABILITIES AND SHAREHOLDERS EQUITY      
|Current Liabilities                        |                                         |                 |           |          |              |   |           |         
|                                           | Current maturities of long-term debt    |                 | $         | 716      |              |   | $         | 150,804  |       
|                                           | Accounts payable                        |                 |           | 158,043  |              |   |           | 138,060  |       
|                                           | Accrued liabilities                     |                 |           | 87,969   |              |   |           | 101,672  |       
|                                           | Income taxes payable                    |                 |           | 7,769    |              |   |           | 13,875   |       
|                                           |                                         |                 |           |          |              |  
|Total Current Liabilities                  |                                         |                 | 254,497   |          |              |   | 404,411   |         
|                                           |                                         |                 |           |          |              |  
|Long-Term Liabilities                      |                                         |                 |           |          |              |   |           |         
|                                           | Long-term debt                          |                 |           | 385,500  |              |   |           | 387,155  |       
|                                           | Accrued pension plan liability          |                 |           | 25,272   |              |   |           | 23,079   |       
|                                           | Other long-term liabilities             |                 |           | 57,820   |              |   |           | 53,161   |       
|Contingencies (Note 10)                    |                                         |                 |           |          |              |   |           |         
|Shareholders Equity                       |                                         |                 |           |          |              |   |           |         
|                                           | Common stock                            |                 |           | 6,199    |              |   |           | 6,109    |       
|                                           | Additional paid-in capital              |                 |           | 449,437  |              |   |           | 411,985  |       
|                                           | Retained earnings                       |                 |           | 682,451  |              |   |           | 643,651  |       
|                                           | Unearned compensation, restricted stock |                 |           |         |              |   |           | (2,098   | )     
|                                           | Accumulated other comprehensive income  |                 |           | (5,607   | )            |   |           | (7,057   | )     
|                                           |                                         |                 |           |          |              |  
|Total Shareholders Equity                 |                                         |                 | 1,132,480 |          |              |   | 1,052,590 |         
|                                           |                                         |                 |           |          |              |  
|Total Liabilities and Shareholders Equity |                                         | $               | 1,855,569 |          |              | $ | 1,920,396 |         
|                                           |                                         |                 |           |          |              |  



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THOMAS & BETTS CORPORATION AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF CASH FLOWS


(In thousands)


(Unaudited)


|                                                    |                                                      |                      |          |          |         |   |        |          |         |  
|--------------------------------------------------- | ---------------------------------------------------- | -------------------- | -------- | -------- | ------- | - | ------ | -------- | ------- | -
|                                                    |                                                      | Quarters Ended       |         
|                                                    |                                                      | March 31,            |         
|                                                    |                                                      |                      |         
|                                                    |                                                      | 2006                 |          |          | 2005    |  
|                                                    |                                                      |                      |          |          |         |  
|Cash Flows from Operating Activities:               |                                                      |                      |          |          |         |   |        |         
|Net earnings                                        |                                                      | $                    | 38,800   |          |         | $ | 24,408 |         
|Adjustments:                                        |                                                      |                      |          |          |         |   |        |         
|                                                    | Depreciation and amortization                        |                      |          | 11,785   |         |   |        | 13,058   |        
|                                                    | Share-based compensation expense                     |                      |          | 1,792    |         |   |        |         |        
|                                                    | Deferred income taxes                                |                      |          | 4,528    |         |   |        | 348      |        
|                                                    | Incremental tax benefits from share-based payments   |                      |          | (2,902   | )       |   |        |         |        
|                                                    | Changes in operating assets and liabilities, net:    |                      |          |          |         |   |        |          |        
|                                                    |                                                      | Receivables          |          |          | (23,915 | ) |        |          | (21,159 | )
|                                                    |                                                      | Inventories          |          |          | (19,978 | ) |        |          | (5,993  | )
|                                                    |                                                      | Accounts payable     |          |          | 19,661  |   |        |          | 7,318   |  
|                                                    |                                                      | Accrued liabilities  |          |          | (13,885 | ) |        |          | (3,375  | )
|                                                    |                                                      | Income taxes payable |          |          | (6,171  | ) |        |          | (4,423  | )
|                                                    |                                                      | Other                |          |          | 4,435   |   |        |          | 3,543   |  
|                                                    |                                                      |                      |          |          |         |  
|Net cash provided by (used in) operating activities |                                                      |                      | 14,150   |          |         |   | 13,725 |         
|                                                    |                                                      |                      |          |          |         |  
|Cash Flows from Investing Activities:               |                                                      |                      |          |          |         |   |        |         
|                                                    | Purchases of property, plant and equipment           |                      |          | (14,086  | )       |   |        | (8,290   | )      
|                                                    | Purchases of businesses                              |                      |          |         |         |   |        | (15,203  | )      
|                                                    | Proceeds from sale of property, plant and equipment  |                      |          | 118      |         |   |        | 335      |        
|                                                    | Marketable securities acquired                       |                      |          | (121,625 | )       |   |        | (113,800 | )      
|                                                    | Proceeds from marketable securities                  |                      |          | 413,253  |         |   |        | 137,419  |        
|                                                    |                                                      |                      |          |          |         |  
|Net cash provided by (used in) investing activities |                                                      |                      | 277,660  |          |         |   | 461    |         
|                                                    |                                                      |                      |          |          |         |  
|Cash Flows from Financing Activities:               |                                                      |                      |          |          |         |   |        |         
|                                                    | Repayment of long-term debt and other borrowings     |                      |          | (150,112 | )       |   |        | (273     | )      
|                                                    | Stock options exercised                              |                      |          | 30,083   |         |   |        | 10,974   |        
|                                                    | Incremental tax benefits from share-based payments   |                      |          | 2,902    |         |   |        |         |        
|                                                    |                                                      |                      |          |          |         |  
|Net cash provided by (used in) financing activities |                                                      |                      | (117,127 | )        |         |   | 10,701 |         
|                                                    |                                                      |                      |          |          |         |  
|Effect of exchange-rate changes on cash             |                                                      |                      | 299      |          |         |   | (1,442 | )       
|                                                    |                                                      |                      |          |          |         |  
|                                                    | Net increase (decrease) in cash and cash equivalents |                      |          | 174,982  |         |   |        | 23,445   |        
|                                                    | Cash and cash equivalents, beginning of year         |                      |          | 216,742  |         |   |        | 151,189  |        
|                                                    |                                                      |                      |          |          |         |  
|                                                    | Cash and cash equivalents, end of year               |                      | $        | 391,724  |         |   | $      | 174,634  |        
|                                                    |                                                      |                      |          |          |         |  
|Cash payments for interest                          |                                                      | $                    | 10,003   |          |         | $ | 10,204 |         
|Cash payments for income taxes                      |                                                      | $                    | 16,371   |          |         | $ | 14,629 |         



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THOMAS & BETTS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


(UNAUDITED)




|   |                      
|-- | ---------------------
|1. | Basis of Presentation



10-K






|   |                                     
|-- | ------------------------------------
|2. | Basic and Diluted Earnings Per Share



|                                      |                                                                                                  |                |        |        |      |   |        |        | 
|------------------------------------- | ------------------------------------------------------------------------------------------------ | -------------- | ------ | ------ | ---- | - | ------ | ------ | 
|                                      |                                                                                                  | Quarters Ended |       
|                                      |                                                                                                  | March 31,      |       
|                                      |                                                                                                  |                |       
|                                      |                                                                                                  | 2006           |        |        | 2005 |  
|                                      |                                                                                                  |                |        |        |      |  
|(In thousands, except per share data) |                                                                                                  |                |        |        |      |   |        |       
|Net earnings                          |                                                                                                  | $              | 38,800 |        |      | $ | 24,408 |       
|                                      |                                                                                                  |                |        |        |      |  
|Basic shares:                         |                                                                                                  |                |        |        |      |   |        |       
|                                      | Average shares outstanding                                                                       |                |        | 61,432 |      |   |        | 59,333 | 
|                                      |                                                                                                  |                |        |        |      |  
|                                      | Basic earnings per share                                                                         |                | $      | 0.63   |      |   | $      | 0.41   | 
|                                      |                                                                                                  |                |        |        |      |  
|Diluted shares:                       |                                                                                                  |                |        |        |      |   |        |       
|                                      | Average shares outstanding                                                                       |                |        | 61,432 |      |   |        | 59,333 | 
|                                      | Additional shares from the assumed exercise of stock options and
    vesting of restricted stock |                |        | 1,108  |      |   |        | 991    | 
|                                      |                                                                                                  |                |        |        |      |  
|                                      |                                                                                                  |                | 62,540 |        |      |   | 60,324 |       
|                                      |                                                                                                  |                |        |        |      |  
|                                      | Diluted earnings per share                                                                       |                | $      | 0.62   |      |   | $      | 0.40   | 
|                                      |                                                                                                  |                |        |        |      |  

out-of out-of


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THOMAS & BETTS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED


FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)




|   |                                 
|-- | --------------------------------
|3. | Share-Based Payment Arrangements





|                                                                                     |  |               |       |  
|------------------------------------------------------------------------------------ |  | ------------- | ----- | -
|                                                                                     |  | Quarter Ended |      
|                                                                                     |  | March 31,     |      
|                                                                                     |  | 2006          |      
|                                                                                     |  |               |      
|(In thousands)                                                                       |  |               |       |  
|Total cost of share-based payment plans during the period                            |  | $             | 2,099 |  
|Amounts capitalized in inventory during the period                                   |  |               | (307  | )
|Amounts recognized in income during the period for amount
    previously capitalized |  |               |      |  
|                                                                                     |  |               |      
|Amounts charged against income during the period, before income
    tax benefit      |  |               | 1,792 |  
|Related income tax benefit recognized in income during the period                    |  |               | (681  | )
|                                                                                     |  |               |      
|Share-based payments compensation expense, net of tax                                |  | $             | 1,111 |  
|                                                                                     |  |               |      



May 2004 Equity Compensation Plans




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THOMAS & BETTS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED


FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)






Prior Equity Compensation Plans




Change of Control Provisions




Methods Used to Measure Compensation


Stock Options






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##### Table of Contents



THOMAS & BETTS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED


FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)






|                            |  |               
|--------------------------- |  | --------------
|                            |  | Quarter Ended 
|                            |  | March 31, 2006
|                            |  |               
|Weighted-average volatility |  | 30%           
|Expected dividends          |  | %            
|Expected lives in years     |  | 4.5-6.0       
|Risk-free rate              |  | 4.5%          

Nonvested Shares




Summary of Option Activity




|                                 |  |           |            |           |          |         |           |             |                |  |                 |  |  |   |        | 
|-------------------------------- |  | --------- | ---------- | --------- | -------- | ------- | --------- | ----------- | -------------- |  | --------------- |  |  | - | ------ | 
|                                 |  |           |            | Weighted- |          |         | Weighted- |             |                | 
|                                 |  |           |            | Average   |          |         | Average   |             |                | 
|                                 |  | Number    |            |           | Exercise |         |           | Contractual |                |  | Aggregate       | 
|                                 |  | of Shares |            |           | Price    |         |           | Term        |                |  | Intrinsic Value | 
|                                 |  |           |            |           |          |         |           |             |                |  |                 | 
|                                 |  |           |            |           |          | (Years) |           |             | (In thousands) | 
|Outstanding at December 31, 2005 |  |           | 3,947,240  |           |          | $       | 27.84     |             |                |  |                 |  |  |   |        | 
|Granted                          |  |           | 614,136    |           |          |         | 44.72     |             |                |  |                 |  |  |   |        | 
|Exercised                        |  |           | (1,054,673 | )         |          |         | 28.58     |             |                |  |                 |  |  |   |        | 
|Forfeited or expired             |  |           | (30,979    | )         |          |         | 31.94     |             |                |  |                 |  |  |   |        | 
|                                 |  |           |            |           |          |         |           |             |                |  |                 | 
|Outstanding at March 31, 2006    |  |           | 3,475,724  |           |          | $       | 30.58     |             |                |  | 6.27            |  |  | $ | 73,158 | 
|                                 |  |           |            |           |          |         |           |             |                |  |                 | 
|                                
|Exercisable at March 31, 2006    |  |           | 1,797,329  |           |          | $       | 29.73     |             |                |  | 4.63            |  |  | $ | 39,512 | 
|                                 |  |           |            |           |          |         |           |             |                |  |                 | 



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THOMAS & BETTS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED


FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)


Summary of Nonvested Shares Activity




|                               |  |           |         |                  |            |   |       | 
|------------------------------ |  | --------- | ------- | ---------------- | ---------- | - | ----- | 
|                               |  |           |         | Weighted-Average |           
|                               |  | Number of |         |                  | Grant Date |  
|                               |  | Shares    |         |                  | Fair Value |  
|                               |  |           |         |                  |            |  
|Nonvested at December 31, 2005 |  |           | 239,288 |                  |            | $ | 22.23 | 
|Granted                        |  |           | 84,942  |                  |            |   | 44.72 | 
|Vested                         |  |           | (82,664 | )                |            |   | 16.69 | 
|Forfeited                      |  |           |        |                  |            |   |      | 
|                               |  |           |         |                  |            |  
|Nonvested at March 31, 2006    |  |           | 241,566 |                  |            | $ | 32.03 | 
|                               |  |           |         |                  |            |  



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THOMAS & BETTS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED


FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)


Prior Year Pro Forma Disclosures






|                            |  |               |       | 
|--------------------------- |  | ------------- | ----- | 
|                            |  | Quarter Ended
|                            |  | March 31,    
|                            |  | 2005         
|                            |  |              
|Weighted-average volatility |  |               | 30%   | 
|Expected dividends          |  |               | %    | 
|Expected lives in years     |  |               | 4.0   | 
|Risk-free rate              |  |               | 3.75% | 



|                                                                                                                                                         |  |           |        |  
|-------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------- | ------ | -
|                                                                                                                                                         |  | Quarter   |       
|                                                                                                                                                         |  | Ended     |       
|                                                                                                                                                         |  | March 31, |       
|                                                                                                                                                         |  | 2005      |       
|                                                                                                                                                         |  |           |       
|(In thousands, except per share data)                                                                                                                    |  |           |        |  
|Net earnings, as reported                                                                                                                                |  | $         | 24,408 |  
|Deduct total incremental stock-based compensation expense
    determined under fair-value-based method for all awards, net of
    related tax effects(a) |  |           | (886   | )
|                                                                                                                                                         |  |           |       
|Pro forma net earnings                                                                                                                                   |  | $         | 23,522 |  
|                                                                                                                                                         |  |           |       
|Earnings per share:                                                                                                                                      |  |           |        |  
|Basic  as reported                                                                                                                                      |  | $         | 0.41   |  
|                                                                                                                                                         |  |           |       
|Basic  pro forma                                                                                                                                        |  | $         | 0.40   |  
|                                                                                                                                                         |  |           |       
|Diluted  as reported                                                                                                                                    |  | $         | 0.40   |  
|                                                                                                                                                         |  |           |       
|Diluted  pro forma                                                                                                                                      |  | $         | 0.39   |  
|                                                                                                                                                         |  |           |       






|    |                                                                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Does not include restricted stock expense, net of tax, of
    $0.3 million that was already charged against income during
    the quarter ended March 31, 2005.

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THOMAS & BETTS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED


FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)




|   |             
|-- | ------------
|4. | Income Taxes







|   |                     
|-- | --------------------
|5. | Comprehensive Income



|                                         |  |                |        |   |      |   |        |  
|---------------------------------------- |  | -------------- | ------ | - | ---- | - | ------ | -
|                                         |  | Quarters Ended |       
|                                         |  | March 31,      |       
|                                         |  |                |       
|                                         |  | 2006           |        |   | 2005 |  
|                                         |  |                |        |   |      |  
|(In thousands)                           |  |                |        |   |      |   |        |  
|Net income                               |  | $              | 38,800 |   |      | $ | 24,408 |  
|Foreign currency translation adjustments |  |                | 1,454  |   |      |   | (7,826 | )
|Unrealized gains (losses) on securities  |  |                | (4     | ) |      |   | (12    | )
|                                         |  |                |        |   |      |  
|Comprehensive income                     |  | $              | 40,250 |   |      | $ | 16,570 |  
|                                         |  |                |        |   |      |  



|   |                       
|-- | ----------------------
|6. | Derivative Instruments



12



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##### Table of Contents



THOMAS & BETTS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED


FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)




| |                                  
| | ---------------------------------
| | Interest Rate Swap
    Agreements





out-of out-of




| |                                  
| | ---------------------------------
| | Commodities Futures
    Contracts

Mark-to mark-to




| |                                       
| | --------------------------------------
| | Forward Foreign Exchange
    Contracts

Mark-to


13



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##### Table of Contents



THOMAS & BETTS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED


FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)


mark-to mark-to




|   |     
|-- | ----
|7. | Debt



|                                              |                         |           |         |         |              |   |         |         | 
|--------------------------------------------- | ----------------------- | --------- | ------- | ------- | ------------ | - | ------- | ------- | 
|                                              |                         | March 31, |         |         | December 31, |  
|                                              |                         | 2006      |         |         | 2005         |  
|(In thousands)                                |                         |           |         |         |              |  
|Unsecured notes                               |                         |           |         |         |              |   |         |        
|                                              | 6.50% Notes due 2006(a) |           | $       |        |              |   | $       | 150,035 | 
|                                              | 7.25% Notes due 2013(b) |           |         | 118,344 |              |   |         | 119,988 | 
|Unsecured medium-term notes                   |                         |           |         |         |              |   |         |        
|                                              | 6.63% Notes due 2008    |           |         | 114,719 |              |   |         | 114,684 | 
|                                              | 6.39% Notes due 2009    |           |         | 149,848 |              |   |         | 149,835 | 
|Other, including capital leases               |                         |           | 3,305   |         |              |   | 3,417   |        
|                                              |                         |           |         |         |              |  
|Long-term debt (including current maturities) |                         | $         | 386,216 |         |              |   | 537,959 |        
|Less current portion                          |                         |           | 716     |         |              |   | 150,804 |        
|                                              |                         |           |         |         |              |  
|Long-term debt                                |                         | $         | 385,500 |         |              | $ | 387,155 |        
|                                              |                         |           |         |         |              |  






|    |  |                                                    
|--- |  | ---------------------------------------------------
|(a) |  | Paid in January 2006 from available cash resources.
|   
|(b) |  | See Note 6 regarding interest rate swap agreements.









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THOMAS & BETTS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED


FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)








|   |                                     
|-- | ------------------------------------
|8. | Pension and Post-Retirement Benefits



|                                                 |                               |                  |        |       |                          |   |        |           |   |   |           |     |   |   |     |     |  
|------------------------------------------------ | ----------------------------- | ---------------- | ------ | ----- | ------------------------ | - | ------ | --------- | - | - | --------- | --- | - | - | --- | --- | -
|                                                 |                               | Quarter Ended    |       
|                                                 |                               |                  |       
|                                                 |                               | Pension Benefits |        |       | Post-Retirement Benefits |  
|                                                 |                               |                  |        |       |                          |  
|                                                 |                               | March 31,        |        |       | March 31,                |   |        | March 31, |   |   | March 31, |    
|                                                 |                               | 2006             |        |       | 2005                     |   |        | 2006      |   |   | 2005      |    
|                                                 |                               |                  |        |       |                          |   |        |           |   |   |           |    
|(In thousands)                                   |                               |                  |        |       |                          |   |        |           |   |   |           |     |   |   |     |    
|Service cost  benefits earned during the period |                               | $                | 2,593  |       |                          | $ | 2,650  |           |   | $ | 44        |     |   | $ | 6   |    
|Interest cost on projected benefit obligation    |                               |                  | 5,232  |       |                          |   | 4,718  |           |   |   | 250       |     |   |   | 225 |    
|Expected return on plan assets                   |                               |                  | (6,931 | )     |                          |   | (5,560 | )         |   |   |          |     |   |   |    |    
|Net amortization of unrecognized:                |                               |                  |        |       |                          |   |        |           |   |   |           |     |   |   |     |    
|                                                 | Transition obligation (asset) |                  |        | (8    | )                        |   |        | (9        | ) |   |           | 194 |   |   |     | 194 |  
|                                                 | Prior service cost (gain)     |                  |        | 238   |                          |   |        | 267       |   |   |           | (50 | ) |   |     | (56 | )
|                                                 | Plan net loss (gain)          |                  |        | 1,494 |                          |   |        | 1,034     |   |   |           | 150 |   |   |     | 31  |  
|                                                 |                               |                  |        |       |                          |   |        |           |   |   |           |    
|Net periodic pension cost                        |                               | $                | 2,618  |       |                          | $ | 3,100  |           |   | $ | 588       |     |   | $ | 400 |    
|                                                 |                               |                  |        |       |                          |   |        |           |   |   |           |    





|   |                    
|-- | -------------------
|9. | Segment Disclosures





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THOMAS & BETTS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED


FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)




|                                  |  |                |         |   |      |   |         |  
|--------------------------------- |  | -------------- | ------- | - | ---- | - | ------- | -
|                                  |  | Quarters Ended |        
|                                  |  | March 31,      |        
|                                  |  |                |        
|                                  |  | 2006           |         |   | 2005 |  
|                                  |  |                |         |   |      |  
|(In thousands)                    |  |                |         |   |      |   |         |  
|Net Sales                         |  |                |         |   |      |   |         |  
|Electrical                        |  | $              | 357,849 |   |      | $ | 316,876 |  
|Steel Structures                  |  |                | 52,728  |   |      |   | 44,642  |  
|HVAC                              |  |                | 31,225  |   |      |   | 30,668  |  
|                                  |  |                |         |   |      |  
|Total                             |  | $              | 441,802 |   |      | $ | 392,186 |  
|                                  |  |                |         |   |      |  
|Segment Earnings                  |  |                |         |   |      |   |         |  
|Electrical                        |  | $              | 47,685  |   |      | $ | 33,039  |  
|Steel Structures                  |  |                | 6,955   |   |      |   | 5,315   |  
|HVAC                              |  |                | 3,289   |   |      |   | 3,651   |  
|                                  |  |                |         |   |      |  
|Total reportable segment earnings |  |                | 57,929  |   |      |   | 42,005  |  
|Interest expense, net             |  |                | (3,467  | ) |      |   | (7,160  | )
|Other (expense) income, net       |  |                | 186     |   |      |   | (467    | )
|                                  |  |                |         |   |      |  
|Earnings before income taxes      |  | $              | 54,648  |   |      | $ | 34,378  |  
|                                  |  |                |         |   |      |  



|    |              
|--- | -------------
|10. | Contingencies



| |                      
| | ---------------------
| | Legal
    Proceedings



| |                  
| | -----------------
| | Kaiser Litigation





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THOMAS & BETTS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED


FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)










| |                    
| | -------------------
| | Other Legal Matters





| |                                               
| | ----------------------------------------------
| | Guarantee and
    Indemnification Arrangements

Guarantors Accounting and Disclosure
Requirements for Guarantees, Including Indirect Guarantees of
Indebtedness of Others.




17



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THOMAS & BETTS CORPORATION AND SUBSIDIARIES


NOTES TO CONSOLIDATED


FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)






|                                                                                              |  |                |       |   |      |   |       |  
|--------------------------------------------------------------------------------------------- |  | -------------- | ----- | - | ---- | - | ----- | -
|                                                                                              |  | Quarters Ended |      
|                                                                                              |  | March 31,      |      
|                                                                                              |  |                |      
|                                                                                              |  | 2006           |       |   | 2005 |  
|                                                                                              |  |                |       |   |      |  
|(In thousands)                                                                                |  |                |       |   |      |   |       |  
|Balance at beginning of period                                                                |  | $              | 1,478 |   |      | $ | 1,588 |  
|Liabilities accrued for warranties issued during the period                                   |  |                | 262   |   |      |   | 171   |  
|Deductions for warranty claims paid during the period                                         |  |                | (304  | ) |      |   | (340  | )
|Changes in liability for pre-existing warranties during the
    period, including expirations |  |                | 142   |   |      |   | 80    |  
|                                                                                              |  |                |       |   |      |  
|Balance at end of period                                                                      |  | $              | 1,578 |   |      | $ | 1,499 |  
|                                                                                              |  |                |       |   |      |  





|    |                      
|--- | ---------------------
|11. | Share Repurchase Plan



18



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##### Table of Contents








|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 2. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

Executive Overview




| |             
| | ------------
| | Introduction



Critical Accounting Policies


10-K




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Revenue Recognition: We recognize revenue when finished
    products are shipped to unaffiliated customers and both title
    and risks of ownership are transferred. Sales discounts,
    quantity and price rebates, and allowances are estimated based
    on contractual commitments and experience and recorded in the
    period as a reduction of revenue in which the sale is
    recognized. Quantity rebates are in the form of volume incentive
    discount plans, which include specific sales volume targets or
    year-over-year sales volume growth targets for specific
    customers. Certain distributors can take advantage of price
    rebates by subsequently reselling the Corporations
    products into targeted construction projects or markets.
    Following a distributors sale of an eligible product, the
    distributor submits a claim for a price rebate. The Corporation
    provides additional allowances for bad debts when circumstances
    dictate. A number of distributors, primarily in the Electrical
    segment, have the right to return goods under certain
    circumstances and those returns, which are reasonably estimable,
    are accrued as a reduction of revenue at the time of shipment.
    Management analyzes historical returns and allowances, current
    economic trends and specific customer circumstances when
    evaluating the adequacy of accounts receivable related reserves
    and accruals.
|
| |  | Inventory Valuation: Inventories are stated at the lower
    of cost or market. Cost is determined using the
    first-in, first-out
    (FIFO) method. To ensure inventories are carried at the
    lower of cost or market, the Corporation periodically evaluates
    the carrying value of its inventories. The Corporation also
    periodically performs an evaluation of inventory for excess and
    obsolete items. Such evaluations are based on managements
    judgment and use of estimates. Such estimates incorporate
    inventory quantities on-hand, aging of the inventory, sales
    forecasts for particular product groupings, planned dispositions
    of product lines and overall industry trends.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

19



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##### Table of Contents





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Goodwill and Other Intangible Assets: We follow the
    provisions of SFAS No. 142, Goodwill and Other
    Intangible Assets. SFAS No. 142 requires a
    transitional and annual test of goodwill and indefinite lived
    assets associated with reporting units for indications of
    impairment. The Corporation performs its annual impairment
    assessment in the fourth quarter of each year, unless
    circumstances dictate more frequent assessments. Under the
    provisions of SFAS No. 142, each test of goodwill
    requires the Corporation to determine the fair value of each
    reporting unit, and compare the fair value to the reporting
    units carrying amount. To the extent a reporting
    units carrying amount exceeds its fair value, an
    indication exists that the reporting units goodwill may be
    impaired and the Corporation must perform a second more detailed
    impairment assessment. The second impairment assessment involves
    allocating the reporting units fair value to all of its
    recognized and unrecognized assets and liabilities in order to
    determine the implied fair value of the reporting units
    goodwill as of the assessment date. The implied fair value of
    the reporting units goodwill is then compared to the
    carrying amount of goodwill to quantify an impairment charge as
    of the assessment date.                                                                             
|
| |  | Long-Lived Assets: We follow the provisions of
    SFAS No. 144, Accounting for the Impairment or
    Disposal of Long-Lived Assets. SFAS No. 144
    establishes accounting standards for the impairment of
    long-lived assets such as property, plant and equipment and
    intangible assets subject to amortization. For purposes of
    recognizing and measuring impairment of long-lived assets, the
    Corporation evaluates assets at the lowest level of identifiable
    cash flows for associated product groups. The Corporation
    reviews long-lived assets to be held-and-used for impairment
    annually or whenever events or changes in circumstances indicate
    that the carrying amount of the assets may not be recoverable.
    If the sum of the undiscounted expected future cash flows over
    the remaining useful life of the primary asset in the associated
    product groups is less than the carrying amount of the assets,
    the assets are considered to be impaired. Impairment losses are
    measured as the amount by which the carrying amount of the
    assets exceeds the fair value of the assets. When fair values
    are not available, the Corporation estimates fair value using
    the expected future cash flows discounted at a rate commensurate
    with the risks associated with the recovery of the assets.
    Assets to be disposed of are reported at the lower of carrying
    amount or fair value less costs to sell.
|
| |  | Pension and Postretirement Benefit Plan Actuarial
    Assumptions: We follow the provisions of
    SFAS No. 87, Employers Accounting for
    Pensions and SFAS No. 106, Employers
    Accounting for Postretirement Benefits Other than
    Pensions. For purposes of calculating pension and
    postretirement medical benefit obligations and related costs,
    the Corporation uses certain actuarial assumptions. Two critical
    assumptions, the discount rate and the expected return on plan
    assets, are important elements of expense and/or liability
    measurement. We evaluate these assumptions annually. Other
    assumptions include employee demographic factors (retirement
    patterns, mortality and turnover), rate of compensation increase
    and the healthcare cost trend rate. See additional information
    contained in Managements Discussion and Analysis of
    Financial Condition and Results of Operations 
    Qualified Pension Plans in our 2005 Annual Report on
    Form 10-K.                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | Income Taxes: We use the asset and liability method of
    accounting for income taxes. This method recognizes the expected
    future tax consequences of temporary differences between book
    and tax bases of assets and liabilities and provides a valuation
    allowance based on a more-likely-than-not criteria. The
    Corporation has valuation allowances for deferred tax assets
    primarily associated with operating loss carryforwards, tax
    credit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

20



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##### Table of Contents



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | carryforwards and deferred state
    income tax assets. Realization of the deferred tax assets is
    dependent upon the Corporations ability to generate
    sufficient future taxable income and, if necessary, execution of
    its tax planning strategies. Management believes that it is
    more-likely-than-not that future taxable income, based on
    enacted tax law in effect as of March 31, 2006, will be
    sufficient to realize the recorded deferred tax assets net of
    existing valuation allowances. Management considers the
    scheduled reversal of deferred tax liabilities, projected future
    taxable income and tax planning strategies, which involve
    estimates and uncertainties, in making this assessment. Tax
    planning strategies include primarily sales of non-core assets.
    Projected future taxable income is based on managements
    forecast of the operating results of the Corporation. Management
    periodically reviews such forecasts in comparison with actual
    results and expected trends. In the event management determines
    that sufficient future taxable income, in light of tax planning
    strategies, may not be generated to fully realize net deferred
    tax assets, the Corporation will increase valuation allowances
    by a charge to income tax expense in the period of such
    determination. Likewise, if management determines that future
    taxable income will be sufficient to utilize state and foreign
    net operating loss carryforwards and other deferred tax assets,
    the Corporation will decrease the existing valuation allowance
    by recording a reduction to income tax expense in the period of
    such determination.
|
| |  | Environmental
    Costs:Environmental
    expenditures that relate to current operations are expensed or
    capitalized, as appropriate. Remediation costs that relate to an
    existing condition caused by past operations are accrued when it
    is probable that those costs will be incurred and can be
    reasonably estimated based on evaluations of current available
    facts related to each site.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

2006 Outlook




21



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##### Table of Contents



Summary of Consolidated Results


|                                     |         |                          |         |      |          |  |       |           |  |   |          |      |  |  |       |   | 
|------------------------------------ | ------- | ------------------------ | ------- | ---- | -------- |  | ----- | --------- |  | - | -------- | ---- |  |  | ----- | - | 
|                                     |         | Quarters Ended March 31, |        
|                                     |         |                          |        
|                                     |         | 2006                     |         |      | 2005     | 
|                                     |         |                          |         |      |          | 
|                                     |         | In                       |         |      | % of Net |  |       | In        |  |   | % of Net |     
|                                     |         | Thousands                |         |      | Sales    |  |       | Thousands |  |   | Sales    |     
|                                     |         |                          |         |      |          |  |       |           |  |   |          |     
|Net sales                            |         | $                        | 441,802 |      |          |  | 100.0 |           |  | $ | 392,186  |      |  |  | 100.0 |  
|Cost of sales                        |         |                          | 305,519 |      |          |  | 69.1  |           |  |   | 281,140  |      |  |  | 71.7  |  
|                                     |         |                          |         |      |          |  |       |           |  |   |          |     
|Gross profit                         |         |                          | 136,283 |      |          |  | 30.9  |           |  |   | 111,046  |      |  |  | 28.3  |  
|Selling, general and administrative  |         |                          | 78,528  |      |          |  | 17.8  |           |  |   | 69,350   |      |  |  | 17.7  |  
|                                     |         |                          |         |      |          |  |       |           |  |   |          |     
|Earnings from operations             |         |                          | 57,755  |      |          |  | 13.1  |           |  |   | 41,696   |      |  |  | 10.6  |  
|Income from unconsolidated companies |         |                          | 174     |      |          |  |      |           |  |   | 309      |      |  |  | 0.1   |  
|Interest expense, net                |         |                          | (3,467  | )    |          |  | (0.8  | )         |  |   | (7,160   | )    |  |  | (1.8  | )
|Other (expense) income, net          |         |                          | 186     |      |          |  | 0.1   |           |  |   | (467     | )    |  |  | (0.1  | )
|                                     |         |                          |         |      |          |  |       |           |  |   |          |     
|Earnings before income taxes         |         |                          | 54,648  |      |          |  | 12.4  |           |  |   | 34,378   |      |  |  | 8.8   |  
|Income tax provision                 |         |                          | 15,848  |      |          |  | 3.6   |           |  |   | 9,970    |      |  |  | 2.6   |  
|                                     |         |                          |         |      |          |  |       |           |  |   |          |     
|Net earnings                         |         | $                        | 38,800  |      |          |  | 8.8   |           |  | $ | 24,408   |      |  |  | 6.2   |  
|                                     |         |                          |         |      |          |  |       |           |  |   |          |     
|Per share earnings:                  |         |                          |         |      |          |  |       |           |  |   |          |      |  |  |       |  
|                                     | Basic   |                          | $       | 0.63 |          |  |       |           |  |   | $        | 0.41 |  |  |       |   | 
|                                     |         |                          |         |      |          |  |       |           |  |   |          |     
|                                     | Diluted |                          | $       | 0.62 |          |  |       |           |  |   | $        | 0.40 |  |  |       |   | 
|                                     |         |                          |         |      |          |  |       |           |  |   |          |     

2006 Compared with 2005




| |         
| | --------
| | Overview







| |                               
| | ------------------------------
| | Net Sales and Gross
    Profit





22



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##### Table of Contents







| |         
| | --------
| | Expenses





| |                          
| | -------------------------
| | Interest Expense,
    Net





| |             
| | ------------
| | Income Taxes





| |             
| | ------------
| | Net Earnings



23



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##### Table of Contents



Summary of Segment Results


Net Sales


|                 |  |                          |         |  |          |  |       |           |  |   |          |  |  |  |       | 
|---------------- |  | ------------------------ | ------- |  | -------- |  | ----- | --------- |  | - | -------- |  |  |  | ----- | 
|                 |  | Quarters Ended March 31, |        
|                 |  |                          |        
|                 |  | 2006                     |         |  | 2005     | 
|                 |  |                          |         |  |          | 
|                 |  | In                       |         |  | % of Net |  |       | In        |  |   | % of Net | 
|                 |  | Thousands                |         |  | Sales    |  |       | Thousands |  |   | Sales    | 
|                 |  |                          |         |  |          |  |       |           |  |   |          | 
|Electrical       |  | $                        | 357,849 |  |          |  | 81.0  |           |  | $ | 316,876  |  |  |  | 80.8  | 
|Steel Structures |  |                          | 52,728  |  |          |  | 11.9  |           |  |   | 44,642   |  |  |  | 11.4  | 
|HVAC             |  |                          | 31,225  |  |          |  | 7.1   |           |  |   | 30,668   |  |  |  | 7.8   | 
|                 |  |                          |         |  |          |  |       |           |  |   |          | 
|                 |  | $                        | 441,802 |  |          |  | 100.0 |           |  | $ | 392,186  |  |  |  | 100.0 | 
|                 |  |                          |         |  |          |  |       |           |  |   |          | 

Segment Earnings


|                 |  |                          |        |  |          |  |      |           |  |   |          |  |  |  |      | 
|---------------- |  | ------------------------ | ------ |  | -------- |  | ---- | --------- |  | - | -------- |  |  |  | ---- | 
|                 |  | Quarters Ended March 31, |       
|                 |  |                          |       
|                 |  | 2006                     |        |  | 2005     | 
|                 |  |                          |        |  |          | 
|                 |  | In                       |        |  | % of Net |  |      | In        |  |   | % of Net | 
|                 |  | Thousands                |        |  | Sales    |  |      | Thousands |  |   | Sales    | 
|                 |  |                          |        |  |          |  |      |           |  |   |          | 
|Electrical       |  | $                        | 47,685 |  |          |  | 13.3 |           |  | $ | 33,039   |  |  |  | 10.4 | 
|Steel Structures |  |                          | 6,955  |  |          |  | 13.2 |           |  |   | 5,315    |  |  |  | 11.9 | 
|HVAC             |  |                          | 3,289  |  |          |  | 10.5 |           |  |   | 3,651    |  |  |  | 11.9 | 
|                 |  |                          |        |  |          |  |      |           |  |   |          | 
|                 |  | $                        | 57,929 |  |          |  | 13.1 |           |  | $ | 42,005   |  |  |  | 10.7 | 
|                 |  |                          |        |  |          |  |      |           |  |   |          | 





Electrical Segment




| |                            
| | ---------------------------
| | 2006 Compared with
    2005





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Other Segments




| |                            
| | ---------------------------
| | 2006 Compared with
    2005





Liquidity and Capital Resources






|                                                     |  |                |          |   |      |   |        |  
|---------------------------------------------------- |  | -------------- | -------- | - | ---- | - | ------ | -
|                                                     |  | Quarters Ended |         
|                                                     |  | March 31,      |         
|                                                     |  |                |         
|                                                     |  | 2006           |          |   | 2005 |  
|(In thousands)                                       |  |                |          |   |      |  
|Net cash provided by (used in) operating activities  |  | $              | 14,150   |   |      | $ | 13,725 |  
|Net cash provided by (used in) investing activities  |  |                | 277,660  |   |      |   | 461    |  
|Net cash provided by (used in) financing activities  |  |                | (117,127 | ) |      |   | 10,701 |  
|Effect of exchange-rate changes on cash              |  |                | 299      |   |      |   | (1,442 | )
|                                                     |  |                |          |   |      |  
|Net increase (decrease) in cash and cash equivalents |  | $              | 174,982  |   |      | $ | 23,445 |  
|                                                     |  |                |          |   |      |  



| |                         
| | ------------------------
| | Operating
    Activities





| |                         
| | ------------------------
| | Investing
    Activities





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##### Table of Contents







| |                         
| | ------------------------
| | Financing
    Activities





| |                                  
| | ---------------------------------
| | $200 million Credit
    Agreement





Fixed Charge Coverage Ratio.


Leverage Ratio.






| |                            
| | ---------------------------
| | Other Credit
    Facilities



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##### Table of Contents







| |                                
| | -------------------------------
| | Compliance and
    Availability







| |               
| | --------------
| | Credit Ratings





| |                
| | ---------------
| | Debt Securities



|              |  |        |              |          |      |  |       |                  |  |  |                         |  |  |  |               | 
|------------- |  | ------ | ------------ | -------- | ---- |  | ----- | ---------------- |  |  | ----------------------- |  |  |  | ------------- | 
|              |  |        |              | Interest |      |  |       |                  | 
|Issue Date    |  | Amount |              |          | Rate |  |       | Interest Payable |  |  | Maturity Date           | 
|              |  |        |              |          |      |  |       |                  |  |  |                         | 
|May 1998      |  | $      | 115  million |          |      |  | 6.63% |                  |  |  | May 1 and November 1    |  |  |  | May 2008      | 
|February 1999 |  | $      | 150  million |          |      |  | 6.39% |                  |  |  | March 1 and September 1 |  |  |  | February 2009 | 
|May 2003      |  | $      | 125  million |          |      |  | 7.25% | (a)              |  |  | June 1 and December 1   |  |  |  | June 2013     | 






|    |  |                                                                                                                                                                               
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | We have interest rate swaps associated with only a portion of
    this underlying debt instrument. See Item 3. Quantitative
    and Qualitative Disclosures About Market Risk.





| |      
| | -----
| | Other



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##### Table of Contents









Off-Balance Sheet Arrangements











|        |                                                               
|------- | --------------------------------------------------------------
|Item 3. | Quantitative and Qualitative Disclosures About Market
    Risk

Market Risk and Financial Instruments




10-K.







|        |                        
|------- | -----------------------
|Item 4. | Controls and Procedures



|    |                                                 
|--- | ------------------------------------------------
|(a) | Evaluation of Disclosure Controls and Procedures







|    |                                                     
|--- | ----------------------------------------------------
|(b) | Changes in Internal Control over Financial Reporting



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##### Table of Contents






PART II. OTHER INFORMATION







|        |                  
|------- | -----------------
|Item 1. | Legal Proceedings








|         |             
|-------- | ------------
|Item 1A. | Risk Factors

10-K







|        |                  
|------- | -----------------
|Item 5. | Other Information








|        |         
|------- | --------
|Item 6. | Exhibits



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##### Table of Contents






SIGNATURE






| |                               
| | ------------------------------
| | Thomas & Betts
    Corporation
| | (Registrant)                  



| |     |                     
| | --- | --------------------
| | By: | /s/ Kenneth W. Fluke

| |                              
| | -----------------------------
| |                              
| | Kenneth W. Fluke             
| | Senior Vice President and    
| | Chief Financial Officer      
| | (principal financial officer)



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##### Table of Contents






EXHIBIT INDEX


| |    |    |  |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | -- | -- |  |  |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 10 | .1 |  |  |  | Health Benefits Continuation Agreement dated February 2,
    2005 (Incorporated by reference to Exhibit 10.1 to the
    Current Report on Form 8-K dated February 2, 2005).                                                                                                                                                                                                                                                                                                                                                                                                      
| | 10 | .2 |  |  |  | Form of Restricted Stock Agreement Pursuant to Thomas &
    Betts Corporation Equity Compensation Plan (Incorporated by
    reference to Exhibit 10.2 to the Current Report on
    Form 8-K dated February 2, 2005).                                                                                                                                                                                                                                                                                                                                                             
| | 10 | .3 |  |  |  | Form of Executive Incentive Stock Option Agreement Pursuant to
    Thomas & Betts Corporation Equity Compensation Plan
    (Incorporated by reference to Exhibit 10.3 to the Current
    Report on Form 8-K dated February 2, 2005).                                                                                                                                                                                                                                                                                                                                             
| | 10 | .4 |  |  |  | Form of Executive Nonqualified Stock Option Agreement Pursuant
    to Thomas & Betts Corporation Equity Compensation Plan
    (Incorporated by reference to Exhibit 10.4 to the Current
    Report on Form 8-K dated February 2, 2005).                                                                                                                                                                                                                                                                                                                                          
| | 10 | .5 |  |  |  | First Amendment to Credit Agreement dated March 2, 2005,
    among the Corporation, as borrower, the Lenders party thereto,
    and Wachovia Bank, National Association, as Administrative
    Agent. (Incorporated by reference to Exhibit 10.1 to the
    Current Report on Form 8-K dated March 2, 2005).                                                                                                                                                                                                                                                                     
| | 10 | .6 |  |  |  | Credit Agreement, dated June 25, 2003, among the
    Corporation, as borrower, the subsidiaries of the Corporation,
    as guarantors, the lenders listed therein, Wachovia Bank,
    National Association, as issuing bank, Wachovia Securities,
    Inc., as arranger, and Wachovia Bank, National Association, as
    administrative agent (Incorporated by reference to
    Exhibit 10.3 to the Quarterly Report on Form 10-Q, for
    the quarter ended June 29, 2003).                                                                                                     
| | 10 | .7 |  |  |  | Amended and Restated Credit Agreement dated as of June 14,
    2005 among Thomas & Betts Corporation, as Borrower, The
    Guarantors Party Thereto, The Financial Institutions Party
    Thereto, Bank of America, N.A., Suntrust Bank and Regions Bank,
    as Co-Syndication Agents, LaSalle Bank, N.A., as Documentation
    Agent and Wachovia Bank, National Association, as Administrative
    Agent, Swing Bank and Issuing Bank (Filed as Exhibit 10.1
    to the Registrants Current Report on Form 8-K dated
    June 14, 2005 and incorporated herein by reference).
| | 10 | .8 |  |  |  | First Amendment to Amended and Restated Credit Agreement dated
    August 12, 2005, among Thomas & Betts Corporation,
    as Borrower, the Lenders named therein, and Wachovia Bank,
    National Association, as Administrative Agent (Filed as
    Exhibit 10.1 to the Registrants Current Report of
    Form 8-K dated August 17, 2005 and incorporated herein
    by reference).                                                                                                                                                                                            
| | 10 | .9 |  |  |  | Executive Compensation (Incorporated by reference to Item 1.01
    of the Current Report on Form 8-K dated February 6,
    2006).                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | 12 |    |  |  |  | Statement re Computation of Ratio of Earnings to Fixed Charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | 31 | .1 |  |  |  | Certification of Principal Executive Officer Under Securities
    Exchange Act Rules 13a-14(a) or 15d-14(a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | 31 | .2 |  |  |  | Certification of Principal Financial Officer Under Securities
    Exchange Act Rules 13a-14(a) or 15d-14(a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | 32 |    |  |  |  | Certification Pursuant to Rule 13a-14(b) or
    Rule 15d-14(b) of the Securities Exchange Act of 1934 and
    18 U.S.C. § 1350                                                                                                                                                                                                                                                                                                                                                                                                                                                   

31