Belden Reports Record First Quarter Revenues, 19% Increase in Earnings Per Share

Apr 26, 2001, 01:00 ET from Belden Inc.

    ST. LOUIS, April 26 /PRNewswire/ -- Belden Inc. (NYSE:   BWC) today
 announced net income for the first quarter ended March 31, 2001 of
 $11.2 million, or  $0.45 per diluted share, compared to $9.4 million, or
 $0.38 per diluted share, in the same period last year.  This represents a
 19% increase in earnings per share compared to the first quarter 2000.
 Revenues for the first quarter ended March 31, 2001 increased 10% to
 $251.8 million compared to $228.0 million for the same period last year.
     Included in net income for the first quarter is a one-time net gain of
 $0.02 per diluted share related to the sale of the Company's interest in a
 joint venture investment and the cumulative effect of adopting Financial
 Accounting Standards Board Statement No. 133, Accounting for Derivative
 Instruments and Hedging Activities.  Excluding the impact of these items,
 fully diluted earnings per share would have increased 13% over last year.
 
     First Quarter Results
     Highlights of Belden's first quarter include:
     -- Improved operating earnings and margins in each business segment.
     -- Higher revenues in the Communications segment of 56% through increased
        market penetration and acquisition.
     -- Notification of an expanded contract award from an existing customer, a
        leader in the communications industry.
     -- Monitored distributor inventory levels appear appropriate for current
        business conditions.
 
     "Market conditions, particularly in North America, became increasingly
 challenging throughout the first quarter.  This reflects a weaker US economy
 and a slowdown in the markets we serve," said C. Baker Cunningham, Chairman,
 President, and Chief Executive Officer.  "Despite reduced demand, each of our
 operating units was able to deliver improved operating earnings.  Before one-
 time items, we were able to achieve 13% earnings growth in the first quarter
 by delivering on our strategy of continuous improvements."
     Operating earnings for the quarter ended March 31, 2001 were up 9% to
 $21.1 million compared to $19.4 million in 2000. This increase is the result
 of Communications' market penetration, improved results in Europe, a prior-
 year acquisition and cost-reduction programs, partially offset by the impact
 of lower revenues in the Electronics segment.  Selling, general and
 administrative expenses decreased as a percent of revenues to 11.0% in the
 first quarter of 2001 versus 11.8% in the first quarter of 2000.  This
 improvement is consistent with tighter spending controls throughout the
 organization.
 
     Segment Information
     For the first quarter, the Company experienced earnings growth and margin
 expansion over the comparable prior-year period in each of its reported
 business segments.
 
     Electronics
     The Electronics segment posted an operating earnings increase of 3% in the
 first quarter of 2001 compared to the first quarter of 2000 on revenues of
 $166.1 million.  As a percent of revenues, operating earnings increased by 100
 basis points over the prior-year quarter to 11.2%.
     Overall revenues in this segment were down 6% in the first quarter
 reflecting weakness in the end markets served.  This segment is experiencing
 the effects of slowing business spending, particularly in network-related
 products, as well as reduced capital spending by the industrial sector.
 Geographically, the United States accounted for the majority of the decline,
 while Europe, before the impact of currency, continued to grow. While revenues
 are down across all Electronics' markets, inventory levels in the distribution
 channel appear to be at appropriate levels and our order rates remain in line
 with end-use demand.
     Operating earnings improvements and higher margins in Electronics stem
 from several sources:  improved pricing, recent hiring freezes in selected
 locations, expense management and a reduction in overhead spending.
 
     Communications
     The Communications segment reported revenues of $92.6 million, up 56% from
 the first quarter of 2000. Nearly half of this strong increase is attributed
 to market penetration, while the remainder came from a prior-year acquisition.
 Communications' operating earnings rose to $5.1 million, a three-fold increase
 from the first quarter of 2000.  The higher operating earnings are directly
 related to the execution of the Company's ongoing profit improvement
 initiatives and the addition of the UK business in April 2000.  The segment's
 operating earnings as a percent of revenues were 5.5% in the first quarter of
 2001 versus 2.9% in the year-ago period. "While the acquisition contributed to
 our earnings growth, the most significant gains came from continuing
 improvements in efficiency, leveraging of fixed costs on higher sales volumes
 and market penetration with respect to multi-year contract awards from major
 communications companies," said Mr. Cunningham.
     To date, Belden has not experienced any significant shift in overall
 spending patterns by its US communications customers despite industry capital
 spending reductions.  All indications are that the planned level of
 infrastructure spending for the products the company provides has been
 reduced, but not significantly.  The Communications Division has been notified
 of a pending award from a major communications provider and is in the process
 of finalizing the terms of a 5-year agreement. This agreement should provide
 increased business and mitigate reduced demand in this segment for the
 remainder of the year.
 
     Outlook
     "In January, we stated that the level of earnings we expected to achieve
 in 2001 was based on an assumption that the US economy would continue to enjoy
 moderate growth.  This now appears to be in doubt.  While not immune from
 current economic conditions, Belden's product breadth, internal improvement
 programs and geographical diversification should soften the effects of a
 weaker economic climate," Mr. Cunningham said.
     During the first quarter, Belden initiated several contingency plans
 related to reductions in expected demand.  These include lowering employment
 levels through attrition, restricting discretionary spending, reducing
 scheduled production hours and deferring capital spending related to capacity
 expansion projects.
     "Based on the impact of a slower economy, particularly in North America,
 we believe it will be difficult for our annual revenues to exceed last year's
 level.  We now estimate that full-year 2001 earnings will be in a range of
 $2.15 to $2.30 per share versus $2.14 per share in 2000.  For the second
 quarter, we expect to achieve earnings per share in a range of $0.46 to $0.51.
 Second quarter revenues are expected to be lower than last year reflecting
 reduced demand in the North American operations of the Electronics segment,
 but net income should benefit from cost management initiatives and a permanent
 reduction in the Company's effective income tax rate," Mr. Cunningham
 concluded.
     The statements set forth under "Outlook" and the other 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 current expectations,
 estimates, forecasts and projections about the industries in which the Company
 operates, general economic conditions, current estimated effective tax rates,
 and management's beliefs and assumptions.  These statements are not guarantees
 of future performance and involve certain risks, uncertainties and
 assumptions, which are difficult to predict.  As a result, the Company's
 actual results may differ materially from what is expected or forecasted in
 such forward-looking statements.  The Company undertakes no obligation to
 update any forward-looking statements, whether as a result of new information,
 future events or otherwise, and disclaims any obligation to do so. Please see
 the Company's Form 10-K annual report for 2000 filed with the Securities and
 Exchange Commission (SEC) for more factors that may cause actual results to
 differ materially from expected or forecasted in such forward looking
 statements.
     Management will discuss the results of the first quarter during a
 conference call today at 10:30 a.m. Eastern Time, which Belden will broadcast
 live via the Internet. For all interested parties, the live, listen-only audio
 of the conference call will be broadcast in its entirety.  To listen to the
 call, go to www.belden.com . A replay of this conference call will be archived
 for a limited time on the web site as well.
     Belden is linking people and technology by designing, manufacturing, and
 marketing wire, cable and fiber optic products for the electronic, electrical
 and communications markets.  Belden has manufacturing facilities across North
 America, Europe and Asia.  To obtain additional information contact Paul
 Schlessman, Vice President, Finance and Chief Financial Officer, at
 314-854-8054 or visit Belden's website at www.belden.com.
     Comparative consolidated income statements for the three-month periods
 ended March 31, 2001 and March 31, 2000, consolidated balance sheets as of
 March 31, 2001 and December 31, 2000 and business segment information for the
 three-month periods ended March 31, 2001 and March 31, 2000 follow.
 
 
                                  BELDEN INC.
                         CONSOLIDATED INCOME STATEMENTS
 
     Three Months Ended March 31,            2001           2000
     (in thousands, except per share data)
     (unaudited)
 
     Revenues                              $251,828       $228,009
     Cost of sales                          202,519        181,139
       Gross profit                          49,309         46,870
     Selling, general and administrative
      expenses                               27,715         27,001
     Amortization of goodwill                   508            495
     Operating earnings                      21,086         19,374
     Other income, net                       (1,200)             -
     Interest expense                         4,780          4,518
     Income before taxes                     17,506         14,856
     Income taxes                             6,040          5,497
       Income before cumulative effect of
        change in accounting principle       11,466          9,359
     Cumulative effect of change in
      accounting principle, net of tax benefit
      of $133                                  (251)             -
         Net income                        $ 11,215        $ 9,359
     Basic earnings per share                  $.46           $.38
     Diluted earnings per share                $.45           $.38
     Weighted average number of common shares
      and equivalents:
       Basic                                 24,471         24,384
       Diluted                               24,815         24,556
 
 
                                  BELDEN INC.
                              SEGMENT INFORMATION
 
                                 (in thousands)
                                  (unaudited)
 
 
                             For the Three Months Ended March 31, 2001
                            Electronics Communications    All Other  Total
     Revenues to third
      parties               $163,843     $87,985                $0  $251,828
     Intersegment revenues     2,267       4,608            (6,875)        -
     Total revenues         $166,110     $92,593           $(6,875) $251,828
 
     Operating earnings      $18,624      $5,109           $(2,647)  $21,086
 
 
                             For the Three Months Ended March 31, 2000
                            Electronics Communications    All Other  Total
     Revenues to third
      parties               $175,860     $52,149                $0  $228,009
     Intersegment revenues       800       7,172            (7,972)        -
     Total revenues         $176,660     $59,321           $(7,972) $228,009
 
     Operating earnings      $18,030      $1,695            $ (351)  $19,374
 
 
                                  BELDEN INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
                                                March 31,    December 31,
                                                  2001          2000
     (in thousands)                            (unaudited)
     ASSETS
     Current assets:
       Cash and cash equivalents                  $6,517         $7,396
       Receivables                               126,384        156,195
       Inventories                               181,331        175,331
       Deferred income taxes                      11,534         12,535
       Other                                      12,748          3,116
         Total current assets                    338,514        354,573
     Property, plant and equipment, less
     accumulated depreciation                    344,716        345,060
     Goodwill, less accumulated amortization      76,453         80,552
     Intangibles, less accumulated amortization    9,052          9,636
     Other assets                                  5,577          5,947
                                                $774,312       $795,768
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
       Accounts payable and accrued
        liabilities                            $ 110,292      $ 142,871
       Income taxes payable                        5,400          4,352
         Total current liabilities               115,692        147,223
     Long-term debt                              274,656        272,630
     Postretirement benefits other than pensions  12,414         12,242
     Deferred income taxes                        63,101         61,049
     Other long-term liabilities                  13,676         14,955
     Stockholders' equity:
       Preferred stock                                 -              -
       Common stock                                  262            262
       Additional paid-in capital                 46,352         47,379
       Retained earnings                         307,610        297,625
       Accumulated other comprehensive loss      (25,681)       (21,933)
       Unearned deferred compensation             (1,668)             -
       Treasury stock, at cost                   (32,102)       (35,664)
         Total stockholders' equity              294,773        287,669
                                                $774,312       $795,768
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X74450887
 
 

SOURCE Belden Inc.
    ST. LOUIS, April 26 /PRNewswire/ -- Belden Inc. (NYSE:   BWC) today
 announced net income for the first quarter ended March 31, 2001 of
 $11.2 million, or  $0.45 per diluted share, compared to $9.4 million, or
 $0.38 per diluted share, in the same period last year.  This represents a
 19% increase in earnings per share compared to the first quarter 2000.
 Revenues for the first quarter ended March 31, 2001 increased 10% to
 $251.8 million compared to $228.0 million for the same period last year.
     Included in net income for the first quarter is a one-time net gain of
 $0.02 per diluted share related to the sale of the Company's interest in a
 joint venture investment and the cumulative effect of adopting Financial
 Accounting Standards Board Statement No. 133, Accounting for Derivative
 Instruments and Hedging Activities.  Excluding the impact of these items,
 fully diluted earnings per share would have increased 13% over last year.
 
     First Quarter Results
     Highlights of Belden's first quarter include:
     -- Improved operating earnings and margins in each business segment.
     -- Higher revenues in the Communications segment of 56% through increased
        market penetration and acquisition.
     -- Notification of an expanded contract award from an existing customer, a
        leader in the communications industry.
     -- Monitored distributor inventory levels appear appropriate for current
        business conditions.
 
     "Market conditions, particularly in North America, became increasingly
 challenging throughout the first quarter.  This reflects a weaker US economy
 and a slowdown in the markets we serve," said C. Baker Cunningham, Chairman,
 President, and Chief Executive Officer.  "Despite reduced demand, each of our
 operating units was able to deliver improved operating earnings.  Before one-
 time items, we were able to achieve 13% earnings growth in the first quarter
 by delivering on our strategy of continuous improvements."
     Operating earnings for the quarter ended March 31, 2001 were up 9% to
 $21.1 million compared to $19.4 million in 2000. This increase is the result
 of Communications' market penetration, improved results in Europe, a prior-
 year acquisition and cost-reduction programs, partially offset by the impact
 of lower revenues in the Electronics segment.  Selling, general and
 administrative expenses decreased as a percent of revenues to 11.0% in the
 first quarter of 2001 versus 11.8% in the first quarter of 2000.  This
 improvement is consistent with tighter spending controls throughout the
 organization.
 
     Segment Information
     For the first quarter, the Company experienced earnings growth and margin
 expansion over the comparable prior-year period in each of its reported
 business segments.
 
     Electronics
     The Electronics segment posted an operating earnings increase of 3% in the
 first quarter of 2001 compared to the first quarter of 2000 on revenues of
 $166.1 million.  As a percent of revenues, operating earnings increased by 100
 basis points over the prior-year quarter to 11.2%.
     Overall revenues in this segment were down 6% in the first quarter
 reflecting weakness in the end markets served.  This segment is experiencing
 the effects of slowing business spending, particularly in network-related
 products, as well as reduced capital spending by the industrial sector.
 Geographically, the United States accounted for the majority of the decline,
 while Europe, before the impact of currency, continued to grow. While revenues
 are down across all Electronics' markets, inventory levels in the distribution
 channel appear to be at appropriate levels and our order rates remain in line
 with end-use demand.
     Operating earnings improvements and higher margins in Electronics stem
 from several sources:  improved pricing, recent hiring freezes in selected
 locations, expense management and a reduction in overhead spending.
 
     Communications
     The Communications segment reported revenues of $92.6 million, up 56% from
 the first quarter of 2000. Nearly half of this strong increase is attributed
 to market penetration, while the remainder came from a prior-year acquisition.
 Communications' operating earnings rose to $5.1 million, a three-fold increase
 from the first quarter of 2000.  The higher operating earnings are directly
 related to the execution of the Company's ongoing profit improvement
 initiatives and the addition of the UK business in April 2000.  The segment's
 operating earnings as a percent of revenues were 5.5% in the first quarter of
 2001 versus 2.9% in the year-ago period. "While the acquisition contributed to
 our earnings growth, the most significant gains came from continuing
 improvements in efficiency, leveraging of fixed costs on higher sales volumes
 and market penetration with respect to multi-year contract awards from major
 communications companies," said Mr. Cunningham.
     To date, Belden has not experienced any significant shift in overall
 spending patterns by its US communications customers despite industry capital
 spending reductions.  All indications are that the planned level of
 infrastructure spending for the products the company provides has been
 reduced, but not significantly.  The Communications Division has been notified
 of a pending award from a major communications provider and is in the process
 of finalizing the terms of a 5-year agreement. This agreement should provide
 increased business and mitigate reduced demand in this segment for the
 remainder of the year.
 
     Outlook
     "In January, we stated that the level of earnings we expected to achieve
 in 2001 was based on an assumption that the US economy would continue to enjoy
 moderate growth.  This now appears to be in doubt.  While not immune from
 current economic conditions, Belden's product breadth, internal improvement
 programs and geographical diversification should soften the effects of a
 weaker economic climate," Mr. Cunningham said.
     During the first quarter, Belden initiated several contingency plans
 related to reductions in expected demand.  These include lowering employment
 levels through attrition, restricting discretionary spending, reducing
 scheduled production hours and deferring capital spending related to capacity
 expansion projects.
     "Based on the impact of a slower economy, particularly in North America,
 we believe it will be difficult for our annual revenues to exceed last year's
 level.  We now estimate that full-year 2001 earnings will be in a range of
 $2.15 to $2.30 per share versus $2.14 per share in 2000.  For the second
 quarter, we expect to achieve earnings per share in a range of $0.46 to $0.51.
 Second quarter revenues are expected to be lower than last year reflecting
 reduced demand in the North American operations of the Electronics segment,
 but net income should benefit from cost management initiatives and a permanent
 reduction in the Company's effective income tax rate," Mr. Cunningham
 concluded.
     The statements set forth under "Outlook" and the other 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 current expectations,
 estimates, forecasts and projections about the industries in which the Company
 operates, general economic conditions, current estimated effective tax rates,
 and management's beliefs and assumptions.  These statements are not guarantees
 of future performance and involve certain risks, uncertainties and
 assumptions, which are difficult to predict.  As a result, the Company's
 actual results may differ materially from what is expected or forecasted in
 such forward-looking statements.  The Company undertakes no obligation to
 update any forward-looking statements, whether as a result of new information,
 future events or otherwise, and disclaims any obligation to do so. Please see
 the Company's Form 10-K annual report for 2000 filed with the Securities and
 Exchange Commission (SEC) for more factors that may cause actual results to
 differ materially from expected or forecasted in such forward looking
 statements.
     Management will discuss the results of the first quarter during a
 conference call today at 10:30 a.m. Eastern Time, which Belden will broadcast
 live via the Internet. For all interested parties, the live, listen-only audio
 of the conference call will be broadcast in its entirety.  To listen to the
 call, go to www.belden.com . A replay of this conference call will be archived
 for a limited time on the web site as well.
     Belden is linking people and technology by designing, manufacturing, and
 marketing wire, cable and fiber optic products for the electronic, electrical
 and communications markets.  Belden has manufacturing facilities across North
 America, Europe and Asia.  To obtain additional information contact Paul
 Schlessman, Vice President, Finance and Chief Financial Officer, at
 314-854-8054 or visit Belden's website at www.belden.com.
     Comparative consolidated income statements for the three-month periods
 ended March 31, 2001 and March 31, 2000, consolidated balance sheets as of
 March 31, 2001 and December 31, 2000 and business segment information for the
 three-month periods ended March 31, 2001 and March 31, 2000 follow.
 
 
                                  BELDEN INC.
                         CONSOLIDATED INCOME STATEMENTS
 
     Three Months Ended March 31,            2001           2000
     (in thousands, except per share data)
     (unaudited)
 
     Revenues                              $251,828       $228,009
     Cost of sales                          202,519        181,139
       Gross profit                          49,309         46,870
     Selling, general and administrative
      expenses                               27,715         27,001
     Amortization of goodwill                   508            495
     Operating earnings                      21,086         19,374
     Other income, net                       (1,200)             -
     Interest expense                         4,780          4,518
     Income before taxes                     17,506         14,856
     Income taxes                             6,040          5,497
       Income before cumulative effect of
        change in accounting principle       11,466          9,359
     Cumulative effect of change in
      accounting principle, net of tax benefit
      of $133                                  (251)             -
         Net income                        $ 11,215        $ 9,359
     Basic earnings per share                  $.46           $.38
     Diluted earnings per share                $.45           $.38
     Weighted average number of common shares
      and equivalents:
       Basic                                 24,471         24,384
       Diluted                               24,815         24,556
 
 
                                  BELDEN INC.
                              SEGMENT INFORMATION
 
                                 (in thousands)
                                  (unaudited)
 
 
                             For the Three Months Ended March 31, 2001
                            Electronics Communications    All Other  Total
     Revenues to third
      parties               $163,843     $87,985                $0  $251,828
     Intersegment revenues     2,267       4,608            (6,875)        -
     Total revenues         $166,110     $92,593           $(6,875) $251,828
 
     Operating earnings      $18,624      $5,109           $(2,647)  $21,086
 
 
                             For the Three Months Ended March 31, 2000
                            Electronics Communications    All Other  Total
     Revenues to third
      parties               $175,860     $52,149                $0  $228,009
     Intersegment revenues       800       7,172            (7,972)        -
     Total revenues         $176,660     $59,321           $(7,972) $228,009
 
     Operating earnings      $18,030      $1,695            $ (351)  $19,374
 
 
                                  BELDEN INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
                                                March 31,    December 31,
                                                  2001          2000
     (in thousands)                            (unaudited)
     ASSETS
     Current assets:
       Cash and cash equivalents                  $6,517         $7,396
       Receivables                               126,384        156,195
       Inventories                               181,331        175,331
       Deferred income taxes                      11,534         12,535
       Other                                      12,748          3,116
         Total current assets                    338,514        354,573
     Property, plant and equipment, less
     accumulated depreciation                    344,716        345,060
     Goodwill, less accumulated amortization      76,453         80,552
     Intangibles, less accumulated amortization    9,052          9,636
     Other assets                                  5,577          5,947
                                                $774,312       $795,768
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
       Accounts payable and accrued
        liabilities                            $ 110,292      $ 142,871
       Income taxes payable                        5,400          4,352
         Total current liabilities               115,692        147,223
     Long-term debt                              274,656        272,630
     Postretirement benefits other than pensions  12,414         12,242
     Deferred income taxes                        63,101         61,049
     Other long-term liabilities                  13,676         14,955
     Stockholders' equity:
       Preferred stock                                 -              -
       Common stock                                  262            262
       Additional paid-in capital                 46,352         47,379
       Retained earnings                         307,610        297,625
       Accumulated other comprehensive loss      (25,681)       (21,933)
       Unearned deferred compensation             (1,668)             -
       Treasury stock, at cost                   (32,102)       (35,664)
         Total stockholders' equity              294,773        287,669
                                                $774,312       $795,768
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X74450887
 
 SOURCE  Belden Inc.