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St. Louis, Missouri - Thursday, February 4, 2010 - Belden (NYSE:BDC), a leader in comprehensive cable, wireless signal, industrial networking and other transmission solutions, today announced results of the fourth quarter and full year ended December 31, 2009.
Fourth Quarter 2009 Results
The Company reported fourth quarter 2009 revenue of $387.8 million with an operating profit of $16.6 million. Net income during the fourth quarter of 2009 was $19.9 million, or $0.42 per diluted share. Revenue in the fourth quarter of 2008 was $417.3 million with an operating loss of $482.4 million and a net loss of $448.1 million, or a loss of $9.641 per diluted share.
Adjusted operating income in the fourth quarter of 2009 was $33.0 million or 8.5 percent of revenue, compared to 4.4 percent a year ago. Adjusted income from continuing operations in the fourth quarter was $18.4 million or $0.39 per diluted share, compared to $12.2 million or $0.26 per diluted share in the fourth quarter of 2008. See the attached schedule, Adjusted Operating Results, for a reconciliation of GAAP results to adjusted results.
Full-Year Results
Revenue of $1.4 billion in the year ended December 31, 2009, was approximately 29 percent lower than 2008 revenue of $2.0 billion. Operating income in 2009 was $1.6 million, and the net loss was $24.9 million, or a loss of $0.53 per diluted share. This compares to an operating loss of $342.2 million, and a net loss of $361.8 million or a loss of $8.10 per diluted share in 2008.
Adjusted operating income for fiscal 2009 was $105.5 million, and adjusted income from continuing operations was $54.4 million, or $1.16 per share. This compares to adjusted operating income of $196.5 million and adjusted income from continuing operations of $127.1 million, or $2.68 per share in 2008.
Discussing the results, John Stroup, President and Chief Executive Officer of Belden said, "Although we experienced a historic downturn as a result of the global economic crisis in 2009, our decision to take direct, aggressive restructuring actions early in the year allowed us to significantly improve our cost structure and exit the year a much stronger company. I would like to thank all of our associates for their hard work throughout this process.
"As a result of those efforts we yielded consecutive quarters of double-digit operating margins in our EMEA segment as well as sequential improvement in adjusted operating earnings in our Wireless segment in the second half of the year. Furthermore, cash flows remained very strong with full year free cash flow exceeding $111 million, which generated an ending cash balance of more than $308 million.
"Additionally we are very pleased to have recently announced the hiring of two new members to our senior leadership team, Dhrupad Trivedi and Christoph Gusenleitner, who will lead our Wireless and EMEA segments, respectively. We are fortunate to welcome both Dhrupad and Christoph aboard and believe their combined expertise will be a valuable asset as we continue to grow the Company and improve shareholder value."
Outlook
The Company expects adjusted first quarter revenue and EPS to be between $370 million and $380 million and $0.20 and $0.25 per share, respectively. For the year, the Company expects adjusted revenue and EPS to be between $1.50 billion and $1.55 billion and $1.35 and $1.50, respectively. Both periods exclude the impact of the deferral of revenues and cost of goods sold with respect to its wireless segment, the impact of charges associated with already announced restructuring actions, and discontinued operations.
"Our markets are stable, but the timing and magnitude of the recovery remains uncertain. Therefore, our focus remains on those things within our control, including our Lean Enterprise and Market Delivery System," commented Stroup. "The business is well-positioned to deliver expanded profitability and solid cash flow and to further benefit from the economic recovery whenever it occurs."
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. Forward-looking statements include any statements regarding future revenues, costs and expenses, operating income, earnings per share, margins, cash flows, dividends and capital expenditures. 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. The current global economic slowdown has adversely affected our results of operations and may continue to do so. Turbulence in financial markets may increase our borrowing costs. Additional factors that may cause actual results to differ from the Company's expectations include the Company's reliance on key distributors in marketing products; the Company's ability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control and productivity improvement programs); changes in the level of economic activity in the Company's major geographic markets; difficulties in realigning manufacturing capacity and capabilities among the Company's global manufacturing facilities; the competitiveness of the global cable, connectivity and wireless industries; variability in the Company's quarterly and annual effective tax rates; changes in accounting rules and interpretation of these rules which may affect the Company's reported earnings; changes in currency exchange rates and political and economic uncertainties in the countries where the Company conducts business; 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 acquired businesses; the ability of the Company to develop and introduce new products; the Company having to recognize charges that would reduce income as a result of impairing goodwill and other intangible assets; 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, 2008, filed with the SEC on February 27, 2009. Belden disclaims any duty to update any forward looking statements as a result of new information, future developments, or otherwise.
About Belden
St. Louis-based Belden is a leader in comprehensive cable, wireless signal, industrial networking and other transmission solutions. It has approximately 6,200 employees, and provides value for industrial automation, enterprise, education, healthcare, entertainment and broadcast, sound and security, transportation, infrastructure, consumer electronics and other industries. Belden has manufacturing capabilities throughout North America and Europe and a market presence in nearly every region of the world. Belden was founded in 1902, and today is a leader with some of the strongest brands in the signal transmission industry. For more information, visit www.belden.com.
Contact:
Belden Investor Relations
314-854-8054
