Belden (BDC) 8-K Belden Announces Third Quarter Earnings

Exhibit 99.1

	7701 Forsyth Boulevard	Phone: 314.854.8000
	Suite 800	Fax: 314.854.8003
	St. Louis, Missouri 63105
		www.Belden.com

News Release

From: Belden
Dee Johnson
314.854.8054

For Immediate Release — October 25, 2007

BELDEN ANNOUNCES THIRD QUARTER EARNINGS

Reports third-quarter adjusted EPS of $0.77 and confirms full-year 2007 guidance

St. Louis, Missouri — Belden (NYSE:BDC) today announced that revenue for the third quarter ended September 23, 2007, was $561.6 million and operating income was $72.5 million. Income from continuing operations was $49.4 million, or $0.99 per diluted share. The quarter’s revenue included $164.8 million from businesses acquired during 2007 and $9.8 million of favorable currency translation.

During the quarter, Belden recorded a pre-tax gain of $8.6 million, or after tax $0.15 per diluted share, on the sale of assets in the Czech Republic and the United States. The Company also recorded favorable net adjustments of $0.4 million pre-tax associated with previously announced restructuring activities in North America. Additionally, Belden recorded a $3.1 million income tax benefit, or $0.06 per diluted share, associated with the enactment of lower tax rates applicable to its German operations. In the third quarter of 2006, the Company incurred pre-tax charges of $7.7 million, or $0.13 per share, for severance and asset impairment associated with restructuring actions in North America and Europe and a favorable one-time tax benefit of $4.7 million, or $0.09 per share.

Adjusted for these items, operating income in the third quarter increased 46.7 percent year over year to $63.5 million. As a percent of revenue, adjusted operating income was 11.3 percent in the third quarter of 2007, compared with 11.2 percent in the third quarter of 2006. Adjusted diluted income per share from continuing operations was $0.77 in the third quarter of 2007, a 42.6 percent increase from $0.54 in the third quarter of 2006. See the attached schedule, Adjusted Operating Results, for a reconciliation of GAAP results to adjusted results.

“Organic growth increased to a more representative level this quarter, as our significant product portfolio actions are now behind us,” said John Stroup, President and Chief Executive Officer of Belden. “But this quarter’s results do not yet reflect the financial benefit of the manufacturing restructuring we have been working on all year. Our acquisitions in the second quarter — Hirschman Automation, Lumberg Automation Components, and LTK Wiring — performed well and grew revenues substantially faster than the enterprise in total.”

Items of Note

• On July 2, 2007, Belden completed the sale of its telecommunications cable operation in the Czech Republic for $25.7 million, resulting in a pre-tax gain of $7.8 million. The transaction completed the Company’s exit from the telecommunications cable business.

• The Company’s new plant in Nogales, Mexico, began production and shipment of coaxial and twisted-pair cable, as planned.

• The quarter’s effective tax rate reflects the impact of the one-time $3.1 million benefit from lower tax rates for the Company’s operations in Germany, the utilization of net operating losses in Germany and the Netherlands, and the nontaxable gain on the sale of the Czech assets.

• Under its share repurchase program announced during the quarter, the Company repurchased 220,500 shares for $10.6 million.

Outlook
“We now expect 2007 revenue to be above $2.02 billion and earnings per diluted share to be between $2.85 and $2.95 for the year, excluding the nonrecurring items detailed on the attached schedule,” said Mr. Stroup.

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.

About Belden
Belden is a leader in the design, manufacture, and marketing of signal transmission solutions 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 atwww.belden.com.

Contact:

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

The following schedules are provided:

• Comparative condensed consolidated statements of operations for the three-month and nine-month periods ended September 23, 2007, and September 24, 2006.

• Segment results for the same periods.

• Condensed consolidated balance sheets as of September 23, 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, gain on sale of assets, severance charges, asset impairment, adjusted depreciation and discrete tax items.

Page 2

BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 23, 2007			September 24, 2006			September 23, 2007			September 24, 2006
				(In thousands, except per share data)
Revenues	$	561,611		$	385,581		$	1,448,257		$	1,117,054
Cost of sales		(403,914	)		(296,208	)		(1,048,671	)		(862,089	)
Gross profit		157,697			89,373			399,586			254,965
Selling, general and administrative expenses		(93,756	)		(51,234	)		(243,406	)		(150,706	)
Gain on sale of assets		8,556			—			8,556			—
Asset impairment		—			(2,522	)		(3,262	)		(4,883	)
Operating income		72,497			35,617			161,474			99,376
Interest expense		(7,561	)		(3,056	)		(18,769	)		(10,549	)
Interest income		803			1,971			5,286			4,610
Other income (expense)		581			(82	)		(864	)		(551	)
Income from continuing operations before taxes		66,320			34,450			147,127			92,886
Income tax expense		(16,904	)		(10,064	)		(45,593	)		(32,036	)
Income from continuing operations		49,416			24,386			101,534			60,850
Loss from discontinued operations, net of tax		—			—			—			(1,330	)
Loss on disposal of discontinued operations, net of tax		—			—			—			(4,298	)
Net income	$	49,416		$	24,386		$	101,534		$	55,222
Weighted average number of common shares and equivalents:
Basic		45,084			43,513			44,887			43,044
Diluted		50,131			50,527			50,893			49,964
Basic income (loss) per share:
Continuing operations	$	1.10		$	0.56		$	2.26		$	1.41
Discontinued operations		—			—			—			(0.03	)
Disposal of discontinued operations		—			—			—			(0.10	)
Net income		1.10			0.56			2.26			1.28
Diluted income (loss) per share:
Continuing operations	$	0.99		$	0.50		$	2.01		$	1.26
Discontinued operations		—			—			—			(0.03	)
Disposal of discontinued operations		—			—			—			(0.08	)
Net income		0.99			0.50			2.01			1.15
Dividends declared per share	$	0.05		$	0.05		$	0.15		$	0.15

BELDEN INC.
OPERATING SEGMENT INFORMATION

(Unaudited)

	External								Operating
	Customer		Affiliate			Total			Income
Three Months Ended September 23, 2007	Revenues		Revenues			Revenues			(Loss)
	(In thousands)
Belden Americas	$	231,625	$	18,069		$	249,694		$	44,929
Specialty Products		60,575		26,459			87,034			14,557
Europe		171,828		7,271			179,099			23,627
Asia Pacific		97,583		—			97,583			10,276
Total Segments		561,611		51,799			613,410			93,389
Finance and Administration		—		—			—			(10,680	)
Eliminations		—		(51,799	)		(51,799	)		(10,212	)
Total Continuing Operations	$	561,611	$	—		$	561,611		$	72,497
Three Months Ended September 24, 2006
Belden Americas	$	209,166	$	15,266		$	224,432		$	35,768
Specialty Products		62,270		8,366			70,636			11,256
Europe		95,569		2,618			98,187			170
Asia Pacific		18,576		—			18,576			1,386
Total Segments		385,581		26,250			411,831			48,580
Finance and Administration		—		—			—		��	(8,087	)
Eliminations		—		(26,250	)		(26,250	)		(4,876	)
Total Continuing Operations	$	385,581	$	—		$	385,581		$	35,617
Nine Months Ended September 23, 2007
Belden Americas	$	639,661	$	47,766		$	687,427		$	121,590
Specialty Products		181,808		62,097			243,905			40,962
Europe		430,115		15,012			445,127			33,382
Asia Pacific		196,673		—			196,673			18,596
Total Segments		1,448,257		124,875			1,573,132			214,530
Finance and Administration		—		—			—			(29,872	)
Eliminations		—		(124,875	)		(124,875	)		(23,184	)
Total Continuing Operations	$	1,448,257	$	—		$	1,448,257		$	161,474
Nine Months Ended September 24, 2006
Belden Americas	$	610,550	$	49,141		$	659,691		$	105,167
Specialty Products		190,382		22,420			212,802			27,086
Europe		269,082		6,627			275,709			(901	)
Asia Pacific		47,040		—			47,040			4,319
Total Segments		1,117,054		78,188			1,195,242			135,671
Finance and Administration		—		—			—			(21,128	)
Eliminations		—		(78,188	)		(78,188	)		(15,167	)
Total Continuing Operations	$	1,117,054	$	—		$	1,117,054		$	99,376

BELDEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

	September 23, 2007 (1)			December 31, 2006
	(Unaudited)
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	120,324		$	254,151
Receivables		429,609			217,908
Inventories, net		259,542			202,248
Deferred income taxes		40,828			34,664
Other current assets		16,860			10,465
Total current assets		867,163			719,436
Property, plant and equipment, less accumulated depreciation		382,885			272,285
Goodwill, less accumulated amortization		637,095			275,134
Intangible assets, less accumulated amortization		163,494			70,964
Other long-lived assets		53,115			18,149
	$	2,103,752		$	1,355,968
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	410,219		$	200,008
Current maturities of long-term debt		110,000			62,000
Total current liabilities		520,219			262,008
Long-term debt		350,000			110,000
Postretirement benefits		127,891			62,995
Deferred income taxes		91,753			71,399
Other long-term liabilities		6,866			5,665
Stockholders’ equity:	��
Common stock		503			503
Additional paid-in capital		634,034			591,416
Retained earnings		445,469			348,069
Accumulated other comprehensive income		47,384			15,013
Treasury stock		(120,367	)		(111,100	)
Total stockholders’ equity		1,007,023			843,901
	$	2,103,752		$	1,355,968

(1) The September 23, 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 2007.

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 asset, and in-process research and development charges), severance charges, adjusted depreciation, asset impairment, gains (losses) on sales of assets, and one-time tax benefits (charges). 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 September 23, 2007	Reported			Adjustments			Adjusted
	(In thousands, except percentages and per share amounts)
Revenues	$	561,611		$	—		$	561,611
Gross profit	$	157,697		$	(435	)	$	157,262
as a percent of revenues		28.1	%					28.0	%
Operating income	$	72,497		$	(8,973	)	$	63,524
as a percent of revenues		12.9	%					11.3	%
Income from continuing operations	$	49,416		$	(11,015	)	$	38,401
as a percent of revenues		8.8	%					6.8	%
Income from continuing operations per diluted share	$	0.99		$	(0.22	)	$	0.77
Three Months Ended September 24, 2006
Revenues	$	385,581		$	—		$	385,581
Gross profit	$	89,373		$	4,907		$	94,280
as a percent of revenues		23.2	%					24.5	%
Operating income	$	35,617		$	7,671		$	43,288
as a percent of revenues		9.2	%					11.2	%
Income from continuing operations	$	24,386		$	2,271		$	26,657
as a percent of revenues		6.3	%					6.9	%
Income from continuing operations per diluted share	$	0.50		$	0.04		$	0.54

Adjustments for the three months ended September 23, 2007 included after-tax gain on sales of assets and adjusted depreciation of $7.7 million and $0.2 million, respectively, and a one-time tax benefit of $3.1 million.

Adjustments for the three months ended September 24, 2006 included after-tax charges for severance and asset impairment of $4.9 million and $2.1 million, respectively, and a one-time tax benefit of $4.7 million.

	As
Nine Months Ended September 23, 2007	Reported			Adjustments		Adjusted
	(In thousands, except percentages and per share amounts)
Revenues	$	1,448,257		$	—	$	1,448,257
Gross profit	$	399,586		$	10,374	$	409,960
as a percent of revenues		27.6	%				28.3	%
Operating income	$	161,474		$	9,418	$	170,892
as a percent of revenues		11.1	%				11.8	%
Income from continuing operations	$	101,534		$	1,421	$	102,955
as a percent of revenues		7.0	%				7.1	%
Income from continuing operations per diluted share	$	2.01		$	0.03	$	2.04
Nine Months Ended September 24, 2006
Revenues	$	1,117,054		$	—	$	1,117,054
Gross profit	$	254,965		$	8,067	$	263,032
as a percent of revenues		22.8	%				23.5	%
Operating income	$	99,376		$	14,393	$	113,769
as a percent of revenues		8.9	%				10.2	%
Income from continuing operations	$	60,850		$	7,794	$	68,644
as a percent of revenues		5.4	%				6.1	%
Income from continuing operations per diluted share	$	1.26		$	0.15	$	1.41

Adjustments for the nine months ended September 23, 2007 included after-tax purchase accounting effects for acquisitions, asset impairment, severance, and adjusted depreciation of $8.0 million, $2.5 million, $0.7 million, and $0.8 million, respectively, partially offset by a $7.5 million after-tax gain on sales of assets and a $3.1 million one-time tax benefit.

Adjustments for the nine months ended September 24, 2006 included after-tax charges for severance, asset impairment and adjusted depreciation of $7.9 million, $3.5 million and $1.1 million, respectively, and a one-time tax benefit of $4.7 million.