Belden (BDC) 8-K Belden Announces Second Quarter 2009 Results

EXHIBIT 99.1

		7733 Forsyth Boulevard Suite 800 St. Louis, Missouri 63105	Phone: 314.854.8000 Fax: 314.854.8003 www.Belden.com
	News Release
	From:	Belden Investor Relations 314.854.8054

Belden Announces Second Quarter 2009 Results

Second Quarter 2009 Highlights

• Adjusted net income per diluted share was $0.34 in the quarter

• Free cash flow during the second quarter was $47.9 million

• Second quarter adjusted operating margin was 8.5 percent. To ease the comparison to 2008 results, the adjusted operating margin excluding the wireless segment was 11.0 percent

• Working capital turns improved 1.4 turns sequentially and 1.6 turns year-over-year to 7.3 turns

• Revenue and EPS, adjusted for certain items, for the third quarter of 2009 are expected to be between $335 million and $345 million and $0.20 and $0.25 per share, respectively

St. Louis, Missouri — Wednesday, July 29, 2009 — Belden (NYSE:BDC), a leader in the design, manufacture, and marketing of signal transmission solutions for industrial automation, data networking, and a wide range of specialty electronics markets, today announced results of its 2009 fiscal second quarter.

Second Quarter 2009 Results

The Company reported second quarter 2009 revenue of $343.8 million and operating income of $4.3 million, compared to revenue and operating income of $556.3 million and $65.9 million in the second quarter of 2008, respectively. The Company reported a net loss of $4.9 million, or ($0.10) per diluted share, down from net income of $41.8 million, or $0.88 per diluted share, in the prior year period. Revenue in the most recent quarter included $19.4 million of unfavorable currency translation as compared to the prior year second quarter. Cash flow from operations was $56.7 million during the quarter, and net of capital expenditures was $47.9 million.

During the quarter, Belden recorded pre-tax operating charges for loss on the sale of assets associated with the divestiture of HEW, a German cable business, of $17.2 million, non-cash asset impairment charges of $1.5 million and other costs of $6.2 million, which include costs associated with the Company’s global restructuring plan. In the second quarter of 2008, the Company incurred pre-tax operating charges of $4.3 million for severance, pension

settlements, and other costs associated with restructuring actions in North America and Europe.

Adjusted for these items, operating income in the second quarter of 2009 was $29.2 million or 8.5 percent of revenue, compared to $70.1 million or 12.6 percent a year ago. Adjusted net income per diluted share was $0.34 in the quarter, compared to $0.97 in the second quarter of 2008. See the attached schedule, Adjusted Operating Results, for a reconciliation of GAAP results to adjusted results.

“Our ability to expand gross profit margins and increase working capital turns despite the continuing pressures of the global economic environment is reflective of our successful restructuring initiatives and commitment to the principles of Lean enterprise,” said John Stroup, President and Chief Executive Officer of Belden. “Although we’re beginning to see signs of stabilization, we believe it is prudent to maintain our focus on executing our cost reduction programs and we will continue investing in our strategic growth initiatives to increase profitability and overall market share, which should serve us well when our markets recover.”

Senior Subordinated Notes

In the third quarter, the Company completed a $200 million aggregate principal senior subordinated notes offering due 2019 at a coupon of 9.25% and a yield of 9.75%. Belden used the net proceeds from this offering to repay existing debt under its senior secured credit facility.

“Although this offering results in an incremental quarterly interest expense of $0.05 per share, we are very pleased with our ability to place these notes in a difficult market under favorable terms. Our capital structure is better positioned to support our current operations and future opportunities,” commented Stroup.

Outlook

The Company expects third quarter revenue and EPS, excluding the impact of the deferral of revenues and cost of goods sold with respect to its wireless segment and the impact of charges associated with already announced restructuring actions, to be between $335 million and $345 million and $0.20 and $0.25 per share, respectively.

Stroup remarked, “Although we expect third quarter results to be affected by European seasonality, continued economic uncertainty and the lost revenues associated with the divestiture of HEW, we remain committed to delivering on our strategic plan and executing our global restructuring projects.”

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. The

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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. Some additional 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, 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

Sending All the Right Signals — from industrial automation to data centers, from broadcast studios to aerospace, from cutting-edge wireless communications to consumer electronics, Belden people are committed to delivering the best signal transmission solutions in the world. Belden associates work in copper cable, fiber, wireless technology, connectors, switches and active components to bring voice, video and data to mission-critical applications. With 2008 revenue of $2.0 billion, Belden has manufacturing capability in North America, Europe and Asia. To obtain additional information contact Investor Relations at 314-854-8054, or visit our website at www.belden.com.

Contact:

Belden Investor Relations
314-854-8054

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BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended						Six Months Ended
	June 28, 2009			June 29, 2008			June 28, 2009			June 29, 2008
	(In thousands, except per share data)
Revenues	$	343,821		$	556,303		$	672,333		$	1,068,129
Cost of sales		(235,303	)		(389,830	)		(479,622	)		(755,839	)
Gross profit		108,518			166,473			192,711			312,290
Selling, general and administrative expenses		(67,579	)		(86,913	)		(144,276	)		(182,076	)
Research and development		(14,122	)		(11,093	)		(30,677	)		(20,164	)
Amortization of intangibles		(3,911	)		(2,609	)		(7,776	)		(5,161	)
Asset impairment		(1,453	)		—			(26,176	)		(11,549	)
Loss on sale of assets		(17,184	)		—			(17,184	)		(884	)
Operating income (loss)		4,269			65,858			(33,378	)		92,456
Interest expense		(8,895	)		(11,066	)		(16,218	)		(19,409	)
Interest income		238			1,875			602			2,832
Other income		695			1,986			444			3,154
Income (loss) before taxes		(3,693	)		58,653			(48,550	)		79,033
Income tax benefit (expense)		(1,193	)		(16,848	)		11,210			(24,343	)
Net income (loss)	$	(4,886	)	$	41,805		$	(37,340	)	$	54,690
Weighted average number of common shares and equivalents:
Basic		46,587			43,506			46,557			43,821
Diluted		46,587			47,478			46,557			47,926
Basic income (loss) per share	$	(0.10	)	$	0.96		$	(0.80	)	$	1.25
Diluted income (loss) per share	$	(0.10	)	$	0.88		$	(0.80	)	$	1.14
Dividends declared per share	$	0.05		$	0.05		$	0.10		$	0.10

BELDEN INC.
OPERATING SEGMENT INFORMATION

(Unaudited)

	External								Operating
	Customer		Affiliate			Total			Income
	Revenues		Revenues			Revenues			(Loss)
			(In thousands)
Three Months Ended June 28, 2009
Americas	$	186,734	$	10,888		$	197,622		$	33,521
Wireless		13,234		—			13,234			(7,978	)
EMEA		86,237		13,109			99,346			(13,380	)
Asia Pacific		57,616		—			57,616			8,262
Total Segments		343,821		23,997			367,818			20,425
Corporate expenses		—		—			—			(9,310	)
Eliminations		—		(23,997	)		(23,997	)		(6,846	)
Total	$	343,821	$	—		$	343,821		$	4,269
Three Months Ended June 29, 2008
Americas	$	278,578	$	17,017		$	295,595		$	48,819
Wireless		—		—			—			—
EMEA		171,688		23,767			195,455			24,398
Asia Pacific		106,037		111			106,148			15,775
Total Segments		556,303		40,895			597,198			88,992
Corporate expenses		—		—			—			(12,327	)
Eliminations		—		(40,895	)		(40,895	)		(10,807	)
Total	$	556,303	$	—		$	556,303		$	65,858
Six Months Ended June 28, 2009
Americas	$	368,944	$	18,879		$	387,823		$	58,179
Wireless		25,237		—			25,237			(16,300	)
EMEA		174,298		25,582			199,880			(56,625	)
Asia Pacific		103,854		—			103,854			11,596
Total Segments		672,333		44,461			716,794			(3,150	)
Corporate expenses		—		—			—			(17,667	)
Eliminations		—		(44,461	)		(44,461	)		(12,561	)
Total	$	672,333	$	—		$	672,333		$	(33,378	)
Six Months Ended June 29, 2008
Americas	$	535,172	$	37,377		$	572,549		$	70,480
Wireless		—		—			—			—
EMEA		333,218		44,665			377,883			41,229
Asia Pacific		199,739		111			199,850			27,062
Total Segments		1,068,129		82,153			1,150,282			138,771
Corporate expenses		—		—			—			(26,223	)
Eliminations		—		(82,153	)		(82,153	)		(20,092	)
Total	$	1,068,129	$	—		$	1,068,129		$	92,456

BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(Unaudited)

	Six Months Ended
	June 28, 2009			June 29, 2008
	(In thousands)
Cash flows from operating activities:
Net income (loss)	$	(37,340	)	$	54,690
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		26,842			27,503
Asset impairment		26,176			11,549
Loss on sale of assets		17,184			884
Share-based compensation		4,719			7,292
Provision for inventory obsolescence		4,273			4,132
Tax deficiency (benefit) related to share-based compensation		1,469			(1,141	)
Pension funding in excess of pension expense		(6,452	)		(3,339	)
Amortization of discount on convertible subordinated notes		—			1,069
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses:
Receivables		42,655			(21,827	)
Inventories		42,161			(3,746	)
Accounts payable		(15,669	)		32,910
Accrued liabilities		(25,931	)		(32,397	)
Deferred revenue		782			—
Accrued taxes		(16,558	)		2,931
Other assets		1,484			(8,060	)
Other liabilities		3,539			2,125
Net cash provided by operating activities		69,334			74,575
Cash flows from investing activities:
Capital expenditures		(18,342	)		(18,185	)
Cash used to invest in and acquire businesses		—			(7,891	)
Proceeds from disposal of tangible assets		367			40,249
Net cash provided by (used for) investing activities		(17,975	)		14,173
Cash flows from financing activities:
Cash dividends paid		(4,707	)		(4,458	)
Debt issuance costs		(1,541	)		—
Tax benefit (deficiency) related to share-based compensation		(1,469	)		1,141
Proceeds from exercise of stock options		23			5,171
Payments under share repurchase program		—			(68,336	)
Net cash used for financing activities		(7,694	)		(66,482	)
Effect of foreign currency exchange rate changes on cash and cash equivalents		3,562			7,436
Increase in cash and cash equivalents		47,227			29,702
Cash and cash equivalents, beginning of period		227,413			159,964
Cash and cash equivalents, end of period	$	274,640		$	189,666

Free cash flow is defined as net cash provided by operating activities less capital expenditures. Free cash flow was $50,992 ($69,334 - $18,342) and $56,390 ($74,575 - $18,185) for the six months ended June 28, 2009 and June 29, 2008, respectively.

BELDEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

	June 28, 2009			December 31, 2008
	(Unaudited)
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	274,640		$	227,413
Receivables, net		245,672			292,236
Inventories, net		155,635			216,022
Deferred income taxes		20,647			22,606
Other current assets		51,258			34,826
Total current assets		747,852			793,103
Property, plant and equipment, less accumulated depreciation		298,548			324,569
Goodwill		314,194			321,478
Intangible assets, less accumulated amortization		142,183			156,025
Deferred income taxes		2,625			—
Other long-lived assets		52,640			53,388
	$	1,558,042		$	1,648,563
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	142,367		$	160,744
Accrued liabilities		147,974			180,801
Total current liabilities		290,341			341,545
Long-term debt		590,000			590,000
Postretirement benefits		120,370			120,256
Deferred income taxes		—			4,270
Other long-term liabilities		19,842			21,624
Stockholders’ equity:
Common stock		503			503
Additional paid-in capital		585,650			585,704
Retained earnings		64,904			106,949
Accumulated other comprehensive income		16,107			10,227
Treasury stock		(129,675	)		(132,515	)
Total stockholders’ equity		537,489			570,868
	$	1,558,042		$	1,648,563

Working capital consists of receivables and inventories, net of accounts payable and accrued liabilities (excluding current deferred revenue liabilities). Working capital turns are calculated by dividing annualized cost of sales for the quarter by the working capital balance at the end of the quarter. Working capital turns for the quarters ended June 28, 2009 and June 29, 2008 were 7.3 and 5.7 turns, respectively.

BELDEN INC.
ADJUSTED OPERATING RESULTS

(Unaudited)

In addition to reporting financial results in accordance with accounting principles generally accepted in the United States, we provide operating results adjusted for certain items including asset impairment, severance charges, revenue deferrals related to our Wireless segment, gains (losses) on sales of assets, and other restructuring 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 these adjusted results are useful to investors because they help them compare our results to previous periods and provide insights into underlying trends in the business. Adjusted results should be considered only in conjunction with results reported according to accounting principles generally accepted in the United States.

	As
Three Months Ended June 28, 2009	Reported			Adjustments		Adjusted
	(In thousands, except percentages and per share amounts)
Revenues	$	343,821		$	831	$	344,652
Gross profit	$	108,518		$	5,634	$	114,152
as a percent of revenues		31.6	%				33.1	%
Operating income	$	4,269		$	24,885	$	29,154
as a percent of revenues		1.2	%				8.5	%
Net income (loss)	$	(4,886	)	$	20,728	$	15,842
as a percent of revenues		-1.4	%				4.6	%
Net income (loss) per diluted share	$	(0.10	)	$	0.44	$	0.34
Three Months Ended June 29, 2008
Revenues	$	556,303		$	—	$	556,303
Gross profit	$	166,473		$	2,286	$	168,759
as a percent of revenues		29.9	%				30.3	%
Operating income	$	65,858		$	4,276	$	70,134
as a percent of revenues		11.8	%				12.6	%
Net income	$	41,805		$	4,020	$	45,825
as a percent of revenues		7.5	%				8.2	%
Net income per diluted share	$	0.88		$	0.09	$	0.97

Adjustments for the three months ended June 28, 2009 included pre-tax operating charges for loss on sale of assets, asset impairment, revenue deferrals, and other costs of $17.2 million, $1.5 million, $0.6 million, and $5.6 million, respectively.

Adjustments for the three months ended June 29, 2008 included pre-tax operating charges for pension settlements, severance, and other costs of $1.8 million, $1.5 million, and $1.0 million, respectively, and pre-tax non-operating charges of $2.4 million.

	As
Six Months Ended June 28, 2009	Reported			Adjustments		Adjusted
	(In thousands, except percentages and per share amounts)
Revenues	$	672,333		$	782	$	673,115
Gross profit	$	192,711		$	23,529	$	216,240
as a percent of revenues		28.7	%				32.1	%
Operating income (loss)	$	(33,378	)	$	78,612	$	45,234
as a percent of revenues		-5.0	%				6.7	%
Net income (loss)	$	(37,340	)	$	60,438	$	23,098
as a percent of revenues		-5.6	%				3.4	%
Net income (loss) per diluted share	$	(0.80	)	$	1.29	$	0.49
Six Months Ended June 29, 2008
Revenues	$	1,068,129		$	—	$	1,068,129
Gross profit	$	312,290		$	6,242	$	318,532
as a percent of revenues		29.2	%				29.8	%
Operating income	$	92,456		$	28,964	$	121,420
as a percent of revenues		8.7	%				11.4	%
Net income	$	54,690		$	23,318	$	78,008
as a percent of revenues		5.1	%				7.3	%
Net income per diluted share	$	1.14		$	0.49	$	1.63

Adjustments for the six months ended June 28, 2009 included pre-tax operating charges for asset impairment, severance, loss on sale of assets, revenue deferrals, and other costs of $26.2 million, $26.0 million, $17.2 million, $0.8 million, and $8.4 million, respectively, and pre-tax non-operating charges of $1.5 million.

Adjustments for the six months ended June 29, 2008 included pre-tax operating charges for severance, asset impairment, pension settlements, loss on sale of assets, and other costs of $13.4 million, $11.5 million, $1.8 million, $0.9 million, and $1.4 million, respectively, and pre-tax non-operating charges of $2.9 million.