News Details

ST. LOUIS--(BUSINESS WIRE)-- Belden Inc. (NYSE: BDC), a global leader in signal transmission solutions for mission-critical applications, today announced it has reached an agreement in principle to sell its Mobile Machine Control Solutions (“MCS”) business, including a 50% interest in a Chinese joint venture. Both serve the mobile working machines industry. The buyer, WIKA Group, an international market leader in industrial measurement technology, will pay consideration of approximately $39 million, subject to customary post-closing adjustments. The transaction is subject to customary closing conditions, including regulatory clearance, and is expected to close in the second fiscal quarter.

The MCS business is a part of our Industrial Connectivity platform, and the joint venture is an equity method investment within our consolidated results. This divestiture is expected to have an impact to the 2017 guidance provided at the Company’s Investor and Analyst Day event on December 5, 2016. For the fiscal year 2017, the divestiture of the MCS business is expected to reduce revenues and EPS by approximately $27 million and $0.05, respectively.

The Company now expects full-year 2017 GAAP and adjusted revenues to be $2.355 - $2.405 billion and GAAP EPS to be $3.38 - $3.63. On an adjusted basis, EPS is expected to be in the range of $4.95 - $5.20.

Earnings per Share (EPS)
All references to EPS within this earnings release refer to income from continuing operations per diluted share attributable to Belden common stockholders.

Use of Non-GAAP Financial Information
Adjusted results are non-GAAP measures that reflect certain adjustments the Company makes to provide insight into operating results. A GAAP to non-GAAP reconciliation accompanies this release and has been published to the investor relations section of the Company’s Web site at http://investor.belden.com.

Forward Looking Statements
This release contains, and statements made by us concerning the release may contain, forward-looking statements, including our expectations for the full-year 2017. Forward-looking statements also include statements regarding future financial performance (including revenues, expenses, earnings, margins, cash flows, dividends, capital expenditures and financial condition), plans and objectives, and related assumptions. In some cases these statements are identifiable through the use of words such as “anticipate,” “believe,” “estimate,” “forecast,” “guide,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would” and similar expressions. Forward-looking statements reflect management’s current beliefs and expectations and are not guarantees of future performance. Actual results may differ materially from those suggested by any forward-looking statements for a number of reasons, including, without limitation: the impact of a challenging global economy or a downturn in served markets; the cost and availability of raw materials including copper, plastic compounds, electronic components, and other materials; the competitiveness of the global broadcast, enterprise, and industrial markets; disruption of, or changes in, the Company’s key distribution channels; volatility in credit and foreign exchange markets; the inability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); the inability to successfully complete and integrate acquisitions in furtherance of the Company’s strategic plan; the inability of the Company to develop and introduce new products and competitive responses to our products; assertions that the Company violates the intellectual property of others and the ownership of intellectual property by competitors and others that prevents the use of that intellectual property by the Company; risks related to the use of open source software; the inability to retain senior management and key employees; disruptions in the Company’s information systems including due to cyber-attacks; variability in the Company’s quarterly and annual effective tax rates; perceived or actual product failures; political and economic uncertainties in the countries where the Company conducts business, including emerging markets; the impairment of goodwill and other intangible assets and the resulting impact on financial performance; the impact of regulatory requirements and other legal compliance issues; disruptions and increased costs attendant to collective bargaining groups and other labor matters; 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, 2015, filed with the SEC on February 25, 2016. Although the content of this release represents our best judgment as of the date of this report based on information currently available and reasonable assumptions, we give no assurances that the expectations will prove to be accurate. Deviations from the expectations may be material. For these reasons, Belden cautions readers to not place undue reliance on these forward-looking statements, which speak only as of the date made. Belden disclaims any duty to update any forward looking statements as a result of new information, future developments, or otherwise, except as required by law.

About Belden
Belden Inc. delivers a comprehensive product portfolio designed to meet the mission-critical network infrastructure needs of industrial, enterprise and broadcast markets. With innovative solutions targeted at reliable and secure transmission of rapidly growing amounts of data, audio and video needed for today’s applications, Belden is at the center of the global transformation to a connected world. Founded in 1902, the company is headquartered in St. Louis and has manufacturing capabilities in North and South America, Europe and Asia.

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Source: Belden Inc.