Print page
E-mail page
Download PDF
« Previous Release | Next Release »
St. Louis, Missouri - Thursday, July 24, 2008 - Belden (NYSE:BDC), a leader in the design, manufacture, and marketing of signal transmission solutions for industrial automation, data networking, and a wide range of specialty electronics markets, today announced results of the second quarter ended June 29, 2008.
Second Quarter 2008 Results
In the quarter, revenue was $556.3 million and operating income was $65.9 million. Net income was $42.2 million, or $0.89 per diluted share. The quarter's revenue included $31.8 million of favorable currency translation.
During the quarter, Belden recorded a pre-tax $1.8 million pension settlement expense related to restructuring of its Canadian operations; severance charges and accelerated depreciation of $1.6 million pre-tax related to the previously announced plan to close a manufacturing plant in Manchester, Connecticut; charges of $0.9 million pre-tax associated with the restructuring of European and North American operations; and interest expense of $1.9 million pre-tax related to the unfavorable resolution of Canadian tax matters pertaining to Belden's 2004 merger with Cable Design Technologies. In the second quarter of 2007, the Company incurred pre-tax charges of $2.9 million in severance, asset impairment, and adjusted depreciation charges associated with restructuring activities in North America and $12.2 million in nonrecurring purchase accounting effects related to businesses acquired during the quarter.
Adjusted for these items, operating income in the second quarter increased 4.9 percent year over year to $70.1 million. As a percent of revenue, adjusted operating income was 12.6 percent in the second quarter of 2008, compared with 12.2 percent in the second quarter of 2007. Adjusted diluted income per share was $0.97 in the second quarter of 2008, a 22.8 percent increase from $0.79 in the second quarter of 2007. See the attached schedule, Adjusted Operating Results, for a reconciliation of GAAP results to adjusted results.
"An improved business portfolio and the successful execution of margin expansion initiatives drove our record performance," said John Stroup, President and Chief Executive Officer. "The business now reflects much better geographic diversification, an improved mix of connectivity and high-value networking products, and more emphasis on attractive vertical markets like industrial automation. We drove margin improvement through changes to our manufacturing footprint, our on-going management of the product portfolio, and the reduction of waste through the implementation of Lean Enterprise methods. Our strong results are attributable to a team focused on our strategic priorities, committed to creating sustainable processes, and dedicated to continuous improvement."
Outlook
"Despite an uncertain macroeconomic environment, we are reaffirming our full-year revenue and earnings outlook," said Mr. Stroup. "We continue to expect that our revenue will be in the range from $2.2 to $2.3 billion for 2008. We are also maintaining our outlook for operating margins, adjusted for restructuring and other charges including the amortization of short-lived intangible assets associated with our recent acquisition of Trapeze Networks, at 11 to 12 percent of revenue. Finally, we are maintaining our outlook for earnings per diluted share, similarly adjusted, at $3.15 to $3.35."
Forward Looking Statements
Statements in this release other than historical facts are "forward looking statements" made in reliance upon the safe harbor of the Private Securities Litigation Reform Act of 1995. These forward looking statements are based on forecasts and projections about the industries served by the Company and about general economic conditions. They reflect management's beliefs and expectations. They are not guarantees of future performance and they involve risk and uncertainty. The Company's actual results may differ materially from these expectations. Some of the factors that may cause actual results to differ from the Company's expectations include demand for the Company's products; the cost and availability of materials including copper, plastic compounds derived from fossil fuels, and other materials; energy costs; the Company's ability to integrate successfully the acquired businesses; and other factors. For a more complete discussion of risk factors, please see our Annual Report on Form 10-K for the year ended December 31, 2007, filed with the SEC on February 29, 2008. Belden disclaims any duty to update any forward looking statements as a result of new information, future developments, or otherwise.
About Belden
Sending All the Right Signals - from industrial automation to data centers, from broadcast studios to aerospace, from cutting-edge wireless communications to consumer electronics, Belden people are committed to delivering the best signal transmission solutions in the world. Our 8,000 associates worldwide work in copper cable, fiber, wireless technology, connectors, switches and active components to bring voice, video and data to your mission-critical application. With 2007 revenue of $2.0 billion, Belden has manufacturing capability in North America, Europe and Asia. To obtain additional information contact Investor Relations at 314-854-8054, or visit our website at www.belden.com.
Contact:
Belden
Dee Johnson
Director of Investor Relations and Corporate Communications
314-854-8054
The following schedules are provided:
