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Adjusted Earnings up 10% on Solid Operating Results in Third Quarter 2012

  Adjusted Earnings up 10% on Solid Operating Results in Third Quarter 2012

Business Wire

ST. LOUIS -- November 08, 2012

Belden Inc. (NYSE: BDC), a global leader in signal transmission solutions for
mission-critical applications, today reported third quarter 2012 results for
the period ended September 30, 2012.

Third Quarter Highlights

  *Achieved record adjusted gross profit margins of 33.1%, increasing 370
    basis points from 29.4% in the year-ago period;
  *Improved adjusted operating profit margins to 12.1%, increasing 150 basis
    points from 10.6% in the year-ago period;
  *Generated $54 million of free cash flow, increasing cash and cash
    equivalents to $386 million;
  *Purchased 655,017 shares of Belden common stock for $25.0 million during
    the quarter, bringing the total program-to-date shares retired to 3.71
    million under the previously announced share repurchase program; and
  *Updated guidance for full year 2012 adjusted revenue of $1.94 – $1.95
    billion and increased the low end of the range of adjusted income from
    continuing operations per diluted share to $3.00 – $3.05.

Third Quarter Results
Revenue for the quarter totaled $490.4 million, up 1% compared to $484.0
million in the second quarter 2012. A loss from continuing operations of $1.14
per diluted share included recent debt refinancing costs of $0.76 per share,
impairment charges of $0.57 per share primarily resulting from the pending
consumer electronics asset sale, restructuring charges of $0.27 per share,
purchase accounting effects related to acquisitions of $0.19 per share, and
amortization of intangibles of $0.12 per share.

Adjusted revenue for the quarter totaled $493.2 million, up 2% compared to
$484.0 million in the second quarter 2012. Adjusted income from continuing
operations per diluted share for the quarter totaled $0.77, compared to $0.70
per diluted share in the third quarter 2011.

John Stroup, President and CEO of Belden Inc., commented, "I am proud of our
third quarter results, including record adjusted gross profit margins and
strong free cash flow generation. Our ability to perform well in this weakened
macro-economic climate is the result of our stronger portfolio and unique
business system that is proving effective in a variety of business
environments. Additionally, we believe the strategic actions discussed on our
second quarter earnings call put us in a better position to execute well for
the remainder of the year.”

Outlook
For the full year 2012, the Company expects adjusted revenues to be $1.94 –
$1.95 billion and adjusted income from continuing operations per diluted share
to be $3.00 – $3.05.

“Clearly, the weak demand environment presents challenges and the uncertainty
affects our visibility. We believe this climate is likely to continue,
therefore we’ll focus on driving improvements to the business through the
implementation of our strategic plan. Despite these pressures, we remain
committed to our full year EPS guidance. We expect our fourth quarter 2012
adjusted revenues to be $500 – $510 million and adjusted income from
continuing operations per diluted share to be $0.72 – $0.77,” said Mr. Stroup.

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. All GAAP to non-GAAP
reconciliations accompany the consolidated financial statements included in
this release and have been published to the investor relations section of the
Company’s website at http://investor.belden.com.

Adjusted results exclude certain items, including asset impairments, purchase
accounting effects related to acquisitions, revenue and cost of sales
deferrals, severance and other restructuring costs, gains (losses) recognized
on the disposal of tangible assets, amortization of intangible assets, gains
(losses) on debt extinguishment, and other costs.

Earnings Conference Call
Management will host a conference call today at 10:30 a.m. Eastern to discuss
results of the quarter. The listen-only audio of the conference call will be
broadcast live via the Internet athttp://investor.belden.com. The dial-in
number for participants in the U.S. is 888-599-8685; the dial-in number for
participants outside the U.S. is 913-312-0403. A replay of this conference
call will remain accessible in the investor relations section of the Company's
website for a limited time.

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 markets and 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.
Changes in the global economy may impact the Company's results. Turbulence in
financial markets may increase the Company's 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 networking 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, electronic components, and other
materials; energy costs; the Company's ability to achieve acquisition
performance expectations and to integrate acquired businesses successfully;
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; security risks and the potential for
business interruption from operating in volatile countries; disruptions or
failures of the Company's (or the Company's suppliers or customers) systems or
operations in the event of a major earthquake, weather event, cyber-attack,
terrorist attack, or other catastrophic event that could cause delays in
completing sales, providing services, or performing other mission-critical
functions; 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,
2011, filed with the SEC on February 29, 2012. 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 Inc. designs, manufactures, and markets cable,
connectivity, and networking products in markets including industrial
automation, enterprise, transportation, infrastructure, and consumer
electronics. It has approximately 7,400 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 in
North America, South America, Europe, and Asia, 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, visitwww.belden.com.



BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
                                                              
                   Three Months Ended                Nine Months Ended
                   September        October 2,       September 30,     October 2,
                   30, 2012         2011             2012              2011
                   (In thousands, except per share data)
                                                                       
Revenues           $ 490,367        $ 519,713        $ 1,438,700       $ 1,517,592
Cost of sales       (343,593 )      (366,962 )      (998,287  )      (1,077,772 )
Gross profit         146,774          152,751          440,413           439,820
Selling,
general and          (100,120 )       (85,355  )       (261,277  )       (244,671   )
administrative
expenses
Research and         (19,020  )       (13,641  )       (48,082   )       (41,800    )
development
Amortization         (7,798   )       (3,371   )       (13,603   )       (10,397    )
of intangibles
Income from
equity method        2,553            1,479            7,254             9,196
investment
Asset               (29,998  )      -              (29,998   )      -          
impairment
Operating            (7,609   )       51,863           94,707            152,148
income (loss)
Interest             (13,892  )       (11,690  )       (38,315   )       (36,246    )
expense
Interest             171              211              733               526
income
Loss on debt        (50,585  )      -              (50,585   )      -          
extinguishment
Income (loss)
from
continuing           (71,915  )       40,384           6,540             116,428
operations
before taxes
Income tax
benefit             20,781         (9,019   )      8,991           (28,164    )
(expense)
Income (loss)
from                 (51,134  )       31,365           15,531            88,264
continuing
operations
Gain from
disposal of
discontinued         9,783            -                9,783             -
operations,
net of tax
Income (loss)
from
discontinued        2,574          (162     )      2,574           (446       )
operations,
net of tax
Net income         $ (38,777  )     $ 31,203        $ 27,888         $ 87,818     
(loss)
                                                                       
Weighted
average number
of common
shares and
equivalents:
Basic                44,787           47,344           45,410            47,317
Diluted              44,787           48,244           46,249            48,329
                                                                       
Basic income
(loss) per
share:
Continuing         $ (1.14    )     $ 0.66           $ 0.34            $ 1.87
operations
Disposal of
discontinued         0.22             -                0.22              -
operations
Discontinued        0.05           -              0.05            (0.01      )
operations
Net income         $ (0.87    )     $ 0.66          $ 0.61           $ 1.86       
                                                                       
Diluted income
(loss) per
share:
Continuing         $ (1.14    )     $ 0.65           $ 0.34            $ 1.83
operations
Disposal of
discontinued         0.22             -                0.21              -
operations
Discontinued        0.05           -              0.05            (0.01      )
operations
Net income         $ (0.87    )     $ 0.65          $ 0.60           $ 1.82       
                                                                       
Comprehensive      $ (24,687  )     $ 4,134         $ 24,366         $ 91,108     
income (loss)
                                                                       
Dividends
declared per       $ 0.05           $ 0.05           $ 0.15            $ 0.15
share
                                                                                    


BELDEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
                                                        
                                      September 30, 2012     December 31, 2011
                                      (Unaudited)
                                      (In thousands)
ASSETS
Current assets:
Cash and cash equivalents             $   385,639            $   382,716
Receivables, net                          299,936                299,070
Inventories, net                          208,478                202,143
Deferred income taxes                     15,648                 19,660
Income tax receivable                     21,471                 -
Other current assets                      18,977                 21,832
Current assets held for sale             52,829               -          
                                                             
Total current assets                      1,002,978              925,421
                                                             
Property, plant and equipment,            290,815                286,933
less accumulated depreciation
Goodwill                                  516,424                348,032
Intangible assets, less                   290,153                151,683
accumulated amortization
Deferred income taxes                     -                      12,219
Other long-lived assets                  75,229               63,832     
                                                             
                                      $   2,175,599         $   1,788,120  
                                                             
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable                      $   231,477            $   227,571
Accrued liabilities                       144,598                153,995
Current maturities of long-term           12,770                 -
debt
Current liabilities held for sale        20,664               -          
                                                             
Total current liabilities                 409,509                381,566
                                                             
Long-term debt                            959,762                550,926
Postretirement benefits                   132,731                131,237
Deferred income taxes                     118                    -
Other long-term liabilities               24,598                 29,842
Stockholders’ equity:
Common stock                              503                    503
Additional paid-in capital                595,640                601,484
Retained earnings                         297,382                276,363
Accumulated other comprehensive           (26,231     )          (22,709    )
loss
Treasury stock                           (218,413    )         (161,092   )
                                                             
Total stockholders’ equity               648,881              694,549    
                                                             
                                      $   2,175,599         $   1,788,120  
                                                                            


BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited)
                                                          
                                        Nine Months Ended
                                        September 30, 2012     October 2, 2011
                                        (In thousands)
Cash flows from operating
activities:
Net income                              $   27,888             $   87,818
Adjustments to reconcile net income
to net cash provided by operating
activities:
Loss on debt extinguishment                 50,585                 -
Depreciation and amortization               40,541                 37,676
Asset impairment                            29,998                 -
Share-based compensation                    9,373                  8,380
Provision for inventory                     3,341                  1,285
obsolescence
Pension funding less than pension           730                    2,782
expense
Tax benefit related to share-based          (3,947     )           (1,802   )
compensation
Income from equity method                   (7,254     )           (9,196   )
investment
Gain from disposal of discontinued          (9,783     )           -
operations
Deferred income tax benefit                 (11,284    )           (6,619   )
Changes in operating assets and
liabilities, net of the effects of
currency exchange
rate changes and acquired
businesses:
Receivables                                 (8,855     )           (42,184  )
Inventories                                 11,701                 (16,953  )
Accounts payable                            (7,197     )           15,141
Accrued liabilities                         870                    6,301
Accrued taxes                               (20,866    )           24,469
Other assets                                (6,550     )           (87      )
Other liabilities                          (5,956     )          (7,549   )
Net cash provided by operating              93,335                 99,462
activities
                                                               
Cash flows from investing
activities:
Cash used to acquire businesses,            (341,942   )           (59,708  )
net of cash acquired
Capital expenditures                        (31,788    )           (21,760  )
Proceeds from disposal of tangible         1,236                1,206    
assets
Net cash used for investing                 (372,494   )           (80,262  )
activities
                                                               
Cash flows from financing
activities:
Borrowings under credit                     945,250                -
arrangements
Payments under borrowing                    (575,784   )           -
arrangements
Payments under share repurchase             (75,000    )           (25,000  )
program
Debt issuance costs paid                    (15,116    )           (3,296   )
Cash dividends paid                         (6,990     )           (7,090   )
Proceeds from exercise of stock             2,372                  4,554
options
Proceeds from settlement of                 4,024                  -
derivatives
Tax benefit related to share-based         3,947                1,802    
compensation
Net cash provided by (used for)             282,703                (29,030  )
financing activities
                                                               
Effect of foreign currency exchange
rate changes on cash and cash              (621       )          (633     )
equivalents
                                                               
Increase (decrease) in cash and             2,923                  (10,463  )
cash equivalents
Cash and cash equivalents,                 382,716              358,653  
beginning of period
Cash and cash equivalents, end of       $   385,639           $   348,190  
period
                                                                            

                                                      
BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)
                                                                                           
                                                                                           Income
                                                                                           from
                                                         Total                            Equity
                                                                                           Method
Three
Months                                    Asia
Ended         Americas      EMEA          Pacific         Segments        Eliminations     Investment     Total
September
30, 2012
              (In thousands)
External
customer      $ 324,111     $ 83,327      $ 82,929        $ 490,367       $ -              $   -          $ 490,367
revenues
Affiliate      9,114        32,590       798           42,502         (42,502  )        -           -         
revenues
Total         $ 333,225     $ 115,917     $ 83,727        $ 532,869       $ (42,502  )     $   -          $ 490,367
revenues
                                                                                                          
Operating
income        $ 21,331      $ 5,224       $ (16,641 )     $ 9,914         $ (20,076  )     $   2,553      $ (7,609    )
(loss)
                                                                                                          
Three
Months
Ended
October
2, 2011
External
customer      $ 325,248     $ 103,713     $ 90,752        $ 519,713       $ -              $   -          $ 519,713
revenues
Affiliate      9,919        30,795       159           40,873         (40,873  )        -           -         
revenues
Total         $ 335,167     $ 134,508     $ 90,911        $ 560,586       $ (40,873  )     $   -          $ 519,713
revenues
                                                                                                          
Operating     $ 39,510      $ 21,452      $ 6,934         $ 67,896        $ (17,512  )     $   1,479      $ 51,863
income
                                                                                                          
Nine
Months
Ended
September
30, 2012
                                                                                                          
External
customer      $ 932,508     $ 270,857     $ 235,335       $ 1,438,700     $ -              $   -          $ 1,438,700
revenues
Affiliate      29,136       90,038       2,804         121,978        (121,978 )        -           -         
revenues
Total         $ 961,644     $ 360,895     $ 238,139       $ 1,560,678     $ (121,978 )     $   -          $ 1,438,700
revenues
                                                                                                          
Operating
income        $ 102,317     $ 43,728      $ (2,573  )     $ 143,472       $ (56,019  )     $   7,254      $ 94,707
(loss)
                                                                                                          
Nine
Months
Ended
October
2, 2011
External
customer      $ 927,978     $ 322,901     $ 266,713       $ 1,517,592     $ -              $   -          $ 1,517,592
revenues
Affiliate      33,462       80,943       658           115,063        (115,063 )        -           -         
revenues
Total         $ 961,440     $ 403,844     $ 267,371       $ 1,632,655     $ (115,063 )     $   -          $ 1,517,592
revenues
                                                                                                          
Operating     $ 110,738     $ 55,206      $ 22,339        $ 188,283       $ (45,331  )     $   9,196      $ 152,148
income
                                                                                                                      


BELDEN INC.
SUPPLEMENTAL PRODUCT GROUP INFORMATION
(Unaudited)
                                                          

Three Months
Ended September       Americas      EMEA          Asia Pacific     Total
30, 2012
                      (In thousands)
Cable products        $ 232,162     $ 34,666      $   62,703       $ 329,531
Networking              55,896        28,344          16,184         100,424
products
Connectivity           36,053       20,317         4,042         60,412
products
Total revenues        $ 324,111     $ 83,327      $   82,929       $ 490,367

Three Months
Ended October 2,
2011
Cable products        $ 253,855     $ 39,547      $   72,565       $ 365,967
Networking              26,813        38,445          14,104         79,362
products
Connectivity           44,580       25,721         4,083         74,384
products
Total revenues        $ 325,248     $ 103,713     $   90,752       $ 519,713

Nine Months Ended
September 30,
2012
                                                                   
Cable products        $ 705,370     $ 114,902     $   183,939      $ 1,004,211
Networking              109,507       87,598          40,414         237,519
products
Connectivity           117,631      68,357         10,982        196,970
products
Total revenues        $ 932,508     $ 270,857     $   235,335      $ 1,438,700

Nine Months Ended
October 2, 2011
Cable products        $ 719,787     $ 129,386     $   214,419      $ 1,063,592
Networking              81,290        111,118         39,743         232,151
products
Connectivity           126,901      82,397         12,551        221,849
products
Total revenues        $ 927,978     $ 322,901     $   266,713      $ 1,517,592
                                                                     


BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)

In addition to reporting financial results in accordance with accounting
principles generally accepted in the United States, we provide non-GAAP
operating results adjusted for certain items including asset impairments,
purchase accounting effects related to acquisitions, revenue and cost of sales
deferrals, severance and other restructuring costs, gains (losses) recognized
on the disposal of tangible assets, amortization of intangible assets, gains
(losses) on debt extinguishment, and other costs. We utilize the adjusted
results to review our ongoing operations without the effect of these
adjustments and for comparison to budgeted operating results. We believe the
adjusted results are useful to investors because they help them compare our
results to previous periods and provide important insights into underlying
trends in the business and how management oversees our business operations on
a day-to-day basis. Adjusted results should be considered only in conjunction
with results reported according to accounting principles generally accepted in
the United States.


                 Three Months Ended            Nine Months Ended
                   September     October 2,      September 30,   October 2,
                   30, 2012        2011            2012              2011
                   (In thousands, except percentages and per share amounts)
                                                                     
GAAP revenues      $ 490,367       $ 519,713       $ 1,438,700       $ 1,517,592
Purchase
accounting
effects              1,710           -               1,710             -
related to
acquisitions
Deferred
revenue             1,080         -             1,080           -         
adjustments
Adjusted           $ 493,157      $ 519,713      $ 1,441,490      $ 1,517,592 
revenues
                                                                     
GAAP operating     $ (7,609  )     $ 51,863        $ 94,707          $ 152,148
income (loss)
Asset                29,998          -               29,998            -
impairment
Severance and
other                17,427          -               17,427            -
restructuring
costs
Purchase
accounting
effects              11,219          -               11,219            -
related to
acquisitions
Amortization
of intangible        7,798           3,371           13,603            10,397
assets
Deferred gross
profit              864           -             864             -         
adjustments
Total
operating           67,306        3,371         73,111          10,397    
income
adjustments
Adjusted
operating          $ 59,697       $ 55,234       $ 167,818        $ 162,545   
income
Adjusted
operating
income as a          12.1    %       10.6    %       11.6      %       10.7      %
percent of
adjusted
revenues
                                                                     
GAAP income
(loss) from        $ (51,134 )     $ 31,365        $ 15,531          $ 88,264
continuing
operations
Operating
income               67,306          3,371           73,111            10,397
adjustments
from above
Loss on debt         50,585          -               50,585            -
extinguishment
Tax effect of       (31,572 )      (1,091  )      (33,568   )      (3,369    )
adjustments
Adjusted
income from        $ 35,185       $ 33,645       $ 105,659        $ 95,292    
continuing
operations
                                                                     
GAAP income
(loss) from
continuing         $ (1.14   )     $ 0.65          $ 0.34            $ 1.83
operations per
diluted share
Adjusted
income from
continuing         $ 0.77          $ 0.70          $ 2.28            $ 1.97
operations per
diluted share
                                                                     
GAAP diluted
weighted             44,787          48,244          46,249            48,329
average shares
Adjustment for
anti-dilutive
shares that         769           -             -               -         
are dilutive
under adjusted
measures
Adjusted
diluted              45,556          48,244          46,249            48,329
weighted
average shares
                                                                                 


BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)

We define free cash flow, which is a non-GAAP financial measure, as net cash
provided by operating activities less capital expenditures, net of proceeds
from the disposal of tangible assets. We believe free cash flow provides
useful information to investors regarding our ability to generate cash from
business operations that is available for acquisitions and other investments,
service of debt principal, dividends and share repurchases. We use free cash
flow, as defined, as one financial measure to monitor and evaluate performance
and liquidity. Non-GAAP financial measures should be considered only in
conjunction with financial measures reported according to accounting
principles generally accepted in the United States. Our definition of free
cash flow may differ from definitions used by other companies.


                 Three Months Ended            Nine Months Ended
                   September      October 2,     September     October 2,
                   30, 2012         2011           30, 2012        2011
                   (In thousands)
GAAP net cash
provided by        $  62,773        $ 68,312       $ 93,335        $ 99,462
operating
activities
Capital
expenditures,
net of
proceeds from        (9,152  )      (6,893 )      (30,552 )      (20,554 )
the disposal
of tangible
assets
Non-GAAP free      $  53,621       $ 61,419      $ 62,783       $ 78,908  
cash flow

Contact:

Belden Investor Relations
314-854-8054
Investor.Relations@Belden.com