St. Louis, Missouri - Belden (NYSE:BDC) today announced that revenue for the fourth quarter ended December 31, 2007, was $584.6 million and operating income was $59.3 million. Income from continuing operations was $35.6 million, or $0.71 per diluted share. The quarter's revenue included $181.1 million from businesses acquired during 2007 and $16.3 million of favorable currency translation.
During the quarter, Belden recorded a pretax charge of $3.6 million for nonrecurring purchase accounting effects related to the businesses acquired in 2007 and a pretax charge of $1.6 million related to the Voluntary Separation Program and other personnel actions announced on December 11, 2007. The Company also recorded a pretax benefit of $0.9 million associated with the net effects of its previously announced North American restructuring actions including severance charges, income with respect to retirement plan curtailments, and favorable depreciation adjustments. Additionally, Belden recorded a one-time income tax charge of $3.5 million resulting from the enactment of tax rate changes affecting the Company's foreign operations. In the fourth quarter of 2006, the Company incurred pretax charges of $19.9 million for severance, asset impairment, and depreciation adjustments associated with restructuring actions and a gain of $1.4 million from the sale of assets.
Adjusted for these items, operating income in the fourth quarter increased 69.1 percent year over year to $63.6 million. As a percent of revenue, adjusted operating income was 10.9 percent in the fourth quarter of 2007, compared with 9.9 percent in the fourth quarter of 2006. Adjusted diluted income per share from continuing operations was $0.83 in the fourth quarter of 2007, an 80.4 percent increase from $0.46 in the fourth quarter of 2006. See the attached schedule, Adjusted Operating Results, for a reconciliation of GAAP results to adjusted results.
Revenue of $2.033 billion in the year ended December 31, 2007, was 35.9 percent higher compared with $1.496 billion in 2006, including revenue of $495.1 million from businesses acquired during 2007 and favorable currency impact of $39.3 million or 2.7 percent. Operating income in 2007 was $220.7 million, and income from continuing operations was $137.1 million, or $2.73 per diluted share.
"Organic revenue growth in the fourth quarter was 6 percent," said John Stroup, President and Chief Executive Officer of Belden, "reflecting an outstanding quarter in Asia and growth in North America, partially offset by lower volume in Europe as we remain focused on improving margins. We are pleased with our results for the quarter and year, and we are encouraged by the positive organic growth in the second half of 2007."
Items of Note
"As we stated in our release of December 11, we expect 2008 revenue to be between $2.2 billion and $2.3 billion. This revenue estimate is based on continuing expectations of slowing economic growth. Excluding restructuring costs and nonrecurring charges, we expect our operating profit margin to be between 12 percent and 14 percent of revenue and earnings per diluted share to be between $3.45 and $3.75 for the year," said Mr. Stroup.
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, 2006, filed with the SEC on March 1, 2007. Belden disclaims any duty to update any forward-looking statements as a result of new information, future developments, or otherwise.
Belden is a leader in the design, manufacture, and marketing of signal transmission solutions for data networking and a wide range of specialty electronics markets including entertainment, industrial, security and aerospace applications. To obtain additional information contact Investor Relations at 314-854-8054, or visit our website at www.belden.com.
Dee Johnson, Director of Investor Relations
and Corporate Communications
The following schedules are provided: