Belden (BDC) 8-K Belden Announces Second Quarter 2007 Results

Exhibit 99.1

From:	Belden
	Dee Johnson
	314.854.8054

For Immediate Release — July 26, 2007

BELDEN ANNOUNCES SECOND QUARTER 2007 RESULTS

Belden raises its outlook for 2007 earnings based on strong operating performance.

St. Louis, Missouri — Belden (NYSE:BDC) today announced that revenue for the second quarter ended June 24, 2007, was $549.9 million and operating income was $51.7 million. Income from continuing operations was $30.1 million, or $0.60 per diluted share. The quarter’s revenue included $149.3 million from businesses acquired during the quarter and $8.1 million of favorable currency translation.

During the quarter, Belden recorded $2.9 million pretax in severance, asset impairment, and adjusted depreciation charges associated with previously announced restructuring activities in North America and Europe and $12.2 million pretax in nonrecurring purchase accounting effects related to the acquired businesses. In the second quarter of 2006, the Company incurred pretax charges of $4.3 million for severance and asset impairment associated with restructuring actions in North America and Europe.

Adjusted for these items, operating income increased 62.5 percent year over year to $66.8 million in the second quarter 2007. As a percent of revenue, adjusted operating income was 12.2 percent in the second quarter of 2007, compared with 10.0 percent in the second quarter of 2006. Adjusted diluted income per share from continuing operations was $0.79 in the second quarter of 2007, a 54.9 percent increase from $0.51 in the second quarter of 2006. See the attached schedule, Adjusted Operating Results, for a reconciliation of GAAP results to adjusted results.

“We attribute our strong results in the second quarter to the ongoing execution of our strategic priorities announced less than one year ago,” said John Stroup, President and Chief Executive Officer of Belden. “Excluding the recent acquisitions, adjusted operating margins expanded 350 basis points year-over-year and 150 basis points sequentially. Most of this improvement results from our portfolio actions and does not yet include the significant improvement expected from our manufacturing footprint strategy and lean enterprise initiatives. We are pleased that all three of our strategic acquisitions—LTK, Hirschmann Automation and Control, and Lumberg Automation—posted strong financial results in the quarter. Moreover, we are encouraged by the progress being made on the various commercial and cost synergies identified in the acquisition process.”

Items of Note

Items of special note for the fiscal quarter include the following:

• On March 26, the Company completed the acquisition of Hirschmann Automation and Control for approximately $260 million in cash.

• On March 27, the Company completed the acquisition of LTK Wiring for approximately $215 in million cash including a final working capital adjustment.

• On April 20, the Company completed the insertion of a net share settlement feature into its $110 million 4.0% convertible subordinated notes, thereby reducing the share count for diluted earnings per share by approximately 1.4 million and adding approximately $0.01 to diluted earnings per share for the quarter.

• On April 30, the Company acquired Lumberg Automation for approximately $115 million in cash.

Subsequent Events

In early July 2007, Belden completed its exit from the copper telecom cable business with the sale of an operation based in Deèín, Czech Republic, to the Willms-Gruppe of Germany.

Outlook

The Company’s previous guidance was for consolidated revenue to be approximately $2.0 billion and earnings per diluted share between $2.50 and $2.70 for the year, excluding any future charges for severance and asset impairment that may result from actions already announced.

“We expect that our strong operating results in the second quarter are sustainable throughout the year,” said Mr. Stroup. “Additionally, the full-year effective tax rate in our adjusted results is now estimated at 36%, an improvement from previous guidance resulting from a more favorable geographic mix of operating profit.

“We now expect consolidated 2007 revenue to exceed $2.0 billion and earnings per diluted share to be between $2.80 and $2.95 for the year, excluding any charges for severance and asset impairment that may result from actions already announced, and excluding the nonrecurring costs stemming from purchase accounting,” he concluded.

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.

Page 2

About Belden

Belden is a leader in the design, manufacture, and marketing of signal transmission products 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.

Contact:

Belden
Dee Johnson, Director of Investor Relations
314-854-8054

The following schedules are provided:

• Comparative condensed consolidated statements of operations for the three-month and six-month periods ended June 24, 2007, and June 25, 2006.

• Segment results for the same periods.

• Condensed consolidated balance sheets as of June 24, 2007, and December 31, 2006.

• A supplemental schedule of adjusted consolidated results for the quarter, the year to date, and the prior-year comparable periods, excluding certain non-recurring purchase accounting effects, severance charges, asset impairment, and adjusted depreciation.

Page 3

BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended						Six Months Ended
	June 24, 2007			June 25, 2006			June 24, 2007			June 25, 2006
	(In thousands, except per share data)
Revenues	$	549,943		$	409,568		$	886,646		$	731,473
Cost of sales		(398,743	)		(317,391	)		(644,757	)		(565,881	)
Gross profit		151,200			92,177			241,889			165,592
Selling, general and administrative expenses		(97,601	)		(53,013	)		(149,650	)		(99,472	)
Asset impairment		(1,870	)		(2,361	)		(3,262	)		(2,361	)
Operating income		51,729			36,803			88,977			63,759
Interest expense		(8,682	)		(3,701	)		(11,208	)		(7,493	)
Interest income		1,740			1,644			4,483			2,639
Other income (expense)		571			(252	)		(1,445	)		(469	)
Income from continuing operations before taxes		45,358			34,494			80,807			58,436
Income tax expense		(15,254	)		(12,970	)		(28,689	)		(21,972	)
Income from continuing operations		30,104			21,524			52,118			36,464
Loss from discontinued operations, net of tax		—			—			—			(1,330	)
Loss on disposal of discontinued operations, net of tax		—			—			—			(4,298	)
Net income	$	30,104		$	21,524		$	52,118		$	30,836
Weighted average number of common shares and equivalents:
Basic		45,078			43,036			44,784			42,801
Diluted		50,920			50,026			51,289			49,679
Basic income (loss) per share:
Continuing operations	$	0.67		$	0.50		$	1.16		$	0.85
Discontinued operations		—			—			—			(0.03	)
Disposal of discontinued operations		—			—			—			(0.10	)
Net income		0.67			0.50			1.16			0.72
Diluted income (loss) per share:
Continuing operations	$	0.60		$	0.44		$	1.03		$	0.76
Discontinued operations		—			—			—			(0.03	)
Disposal of discontinued operations		—			—			—			(0.08	)
Net income		0.60			0.44			1.03			0.65
Dividends declared per share	$	0.05		$	0.05		$	0.10		$	0.10

Page 4

BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)

	External								Operating
	Customer		Affiliate			Total			Income
Three Months Ended June 24, 2007	Revenues		Revenues			Revenues			(Loss)
	(In thousands)
Belden Americas	$	221,738	$	18,419		$	240,157		$	42,353
Specialty Products		64,580		23,215			87,795			16,090
Europe		176,339		5,033			181,372			5,953
Asia Pacific		87,286		—			87,286			6,793
Total Segments		549,943		46,667			596,610			71,189
Finance and Administration		—		—			—			(11,252	)
Eliminations		—		(46,667	)		(46,667	)		(8,208	)
Total Continuing Operations	$	549,943	$	—		$	549,943		$	51,729
Three Months Ended June 25, 2006
Belden Americas	$	222,989	$	18,841		$	241,830		$	38,021
Specialty Products		70,423		8,806			79,229			9,273
Europe		100,501		1,873			102,374			69
Asia Pacific		15,655		—			15,655			1,480
Total Segments		409,568		29,520			439,088			48,843
Finance and Administration		—		—			—			(6,776	)
Eliminations		—		(29,520	)		(29,520	)		(5,264	)
Total Continuing Operations	$	409,568	$	—		$	409,568		$	36,803
Six Months Ended June 24, 2007
Belden Americas	$	408,036	$	29,697		$	437,733		$	76,661
Specialty Products		121,233		35,638			156,871			26,405
Europe		258,287		7,741			266,028			9,755
Asia Pacific		99,090		—			99,090			8,320
Total Segments		886,646		73,076			959,722			121,141
Finance and Administration		—		—			—			(19,192	)
Eliminations		—		(73,076	)		(73,076	)		(12,972	)
Total Continuing Operations	$	886,646	$	—		$	886,646		$	88,977
Six Months Ended June 25, 2006
Belden Americas	$	401,384	$	33,875		$	435,259		$	69,399
Specialty Products		128,112		14,054			142,166			15,830
Europe		173,513		4,009			177,522			(1,071	)
Asia Pacific		28,464		—			28,464			2,933
Total Segments		731,473		51,938			783,411			87,091
Finance and Administration		—		—			—			(13,041	)
Eliminations		—		(51,938	)		(51,938	)		(10,291	)
Total Continuing Operations	$	731,473	$	—		$	731,473		$	63,759

Page 5

BELDEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

	June 24, 2007 (1)			December 31, 2006
	(Unaudited)
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	90,096		$	254,151
Receivables		401,629			217,908
Inventories, net		269,740			202,248
Deferred income taxes		40,557			34,664
Other current assets		17,719			10,465
Total current assets		819,741			719,436
Property, plant and equipment, less accumulated depreciation		386,950			272,285
Goodwill, less accumulated amortization		619,035			275,134
Intangible assets, less accumulated amortization		163,769			70,964
Other long-lived assets		53,695			18,149
	$	2,043,190		$	1,355,968
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	421,779		$	200,008
Current maturities of long-term debt		110,000			62,000
Total current liabilities		531,779			262,008
Long-term debt		350,000			110,000
Postretirement benefits		115,162			62,995
Deferred income taxes		91,659			71,399
Other long-term liabilities		7,112			5,665
Stockholders’ equity:
Common stock		503			503
Additional paid-in capital		630,675			591,416
Retained earnings		398,317			348,069
Accumulated other comprehensive income		27,922			15,013
Treasury stock		(109,939	)		(111,100	)
Total stockholders’ equity		947,478			843,901
	$	2,043,190		$	1,355,968

(1) The June 24, 2007 condensed consolidated balance sheet includes the assets and liabilities of Hirschmann Automation and Control, LTK Wiring and Lumberg Automation, all of which were acquired during the quarter ended June 24, 2007.

Page 6

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 purchase accounting effects related to acquisitions (inventory cost step-up, amortization of the sales backlog intangible, and in-process research and development charges), severance charges, adjusted depreciation, asset impairment, and gains (losses) recognized on the disposal of certain tangible assets. We utilize the adjusted results to review our ongoing operations without the effect of restructuring and related charges 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 24, 2007	Reported			Adjustments		Adjusted
	(In thousands, except percentages and per share amounts)
Revenues	$	549,943		$	—	$	549,943
Gross profit	$	151,200		$	9,266	$	160,466
as a percent of revenues		27.5	%				29.2	%
Operating income	$	51,729		$	15,119	$	66,848
as a percent of revenues		9.4	%				12.2	%
Income from continuing operations	$	30,104		$	9,921	$	40,025
as a percent of revenues		5.5	%				7.3	%
Income from continuing operations per diluted share	$	0.60		$	0.19	$	0.79
Three Months Ended June 25, 2006
Revenues	$	409,568		$	—	$	409,568
Gross profit	$	92,177		$	1,522	$	93,699
as a percent of revenues		22.5	%				22.9	%
Operating income	$	36,803		$	4,323	$	41,126
as a percent of revenues		9.0	%				10.0	%
Income from continuing operations	$	21,524		$	3,362	$	24,886
as a percent of revenues		5.3	%				6.1	%
Income from continuing operations per diluted share	$	0.44		$	0.07	$	0.51

Adjustments for the three months ended June 24, 2007 included after-tax purchase accounting effects for acquisitions, asset impairment, severance, and adjusted depreciation of $8.0 million, $1.2 million, $0.2 million, and $0.5 million, respectively.

Adjustments for the three months ended June 25, 2006 included after-tax charges for asset impairment and severance of $1.5 million and $1.9 million, respectively.

7

	As
Six Months Ended June 24, 2007	Reported			Adjustments		Adjusted
	(In thousands, except percentages and per share amounts)
Revenues	$	886,646		$	—	$	886,646
Gross profit	$	241,889		$	10,809	$	252,698
as a percent of revenues		27.3	%				28.5	%
Operating income	$	88,977		$	18,392	$	107,369
as a percent of revenues		10.0	%				12.1	%
Income from continuing operations	$	52,118		$	12,436	$	64,554
as a percent of revenues		5.9	%				7.3	%
Income from continuing operations per diluted share	$	1.03		$	0.25	$	1.28
Six Months Ended June 25, 2006
Revenues	$	731,473		$	—	$	731,473
Gross profit	$	165,592		$	3,160	$	168,752
as a percent of revenues		22.6	%				23.1	%
Operating income	$	63,759		$	6,722	$	70,481
as a percent of revenues		8.7	%				9.6	%
Income from continuing operations	$	36,464		$	5,523	$	41,987
as a percent of revenues		5.0	%				5.7	%
Income from continuing operations per diluted share	$	0.76		$	0.11	$	0.87

Adjustments for the six months ended June 24, 2007 included after-tax purchase accounting effects for acquisitions, asset impairment, severance, and adjusted depreciation of $8.0 million, $2.6 million, $0.7 million, and $1.0 million, respectively, and a $0.1 million after-tax loss on the disposal of certain tangible assets.

Adjustments for the six months ended June 25, 2006 included after-tax charges for severance, asset impairment and adjusted depreciation of $3.0 million, $1.4 million and $1.1 million, respectively.

8