Belden (BDC) 8-K Belden Announces Third Quarter 2008 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
Dee Johnson
314.854.8054

For Immediate Release — October 23, 2008

BELDEN ANNOUNCES THIRD QUARTER 2008 RESULTS

Third Quarter 2008 Highlights

• Earnings per diluted share, adjusted for certain items, were $0.78 in the quarter, compared with $0.77 a year ago. For the nine months ended September 28, 2008, adjusted earnings per diluted share were $2.41, compared with $2.04 for the first nine months of 2007, an increase of 18.1 percent.

• Belden Americas segment posted a record 21.0 percent operating margin for the third quarter, reflecting the benefit of continued manufacturing cost savings.

• Third quarter adjusted operating margin was 10.6 percent. Excluding the business acquired in 2008, adjusted operating margin was 11.2 percent.

• Belden continued to generate strong cash flow. For the third quarter, free cash flow (cash from operations less capital expenditures) was $39.1 million, exceeding net income.

• Cash increased to $215.4 million, and borrowing capacity under the revolving credit agreement was $103 million. Belden’s interest coverage ratio was 8.1.

• Belden announced plans to hold an investor/analyst meeting in New York on the morning of December 11, 2008.

St. Louis, Missouri — Thursday, October 23, 2008 — 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 the third quarter ended September 28, 2008.

Third Quarter 2008 Results

In the quarter, revenue was $520.5 million and operating income was $47.7 million. Net income was $31.7 million, or $0.67 per diluted share. The quarter’s revenue included $17.1 million of favorable currency translation as compared to the prior-year third quarter.

During the quarter, Belden recorded nonrecurring purchase accounting effects of $1.2 million pretax related to the July 16 acquisition of Trapeze Networks and an asset impairment charge of $0.8 million related to its North American manufacturing restructuring. The gross profit impact of revenue deferral in the Wireless Segment (Trapeze Networks) was $6.3 million. In the third quarter of 2007, the Company recorded a pre-tax gain of $8.6 million on the sale of assets, a $0.4 million pretax favorable adjustment related to restructuring activities in North America, and a $3.1 million income tax benefit associated with the enactment of lower tax rates applicable to its German operations.

Adjusted operating income in the third quarter was $56.1 million or 10.6 percent of revenue. Earnings per diluted share, similarly adjusted, were $0.78 in the quarter, compared with $0.77 in the third quarter a year ago. Excluding the adjusted operating loss of the Wireless Segment for comparability, operating margin was 11.2 percent in the third quarter, versus 11.3 percent a year earlier, despite organic revenue contracting 10.7 percent year over year.

“The weakness in demand that we saw earlier in the year in North America is now apparent throughout Europe and Asia, and distributors have reduced their inventories in anticipation of a weaker global economy,” said John Stroup, President and Chief Executive Officer. “Our North American demand was flat sequentially, but in Europe and Asia the sequential decline in revenue was steeper than historic seasonal patterns. Despite this decline, our connectivity and wireless businesses showed year-over-year growth. In addition, we are pleased to note that our Belden Americas division posted record operating profit this quarter, $46.3 million, 21.0 percent of total segment revenue. This achievement in the face of lower volume reflects manufacturing cost savings resulting from the successful execution of our manufacturing strategy.

“Cash flow from operations in the quarter was $53.3 million, and net of capital expenditures, free cash flow was $39.1 million. Free cash flow for the quarter exceeded net income,” he continued. “Our strong balance sheet, with very moderate leverage and good liquidity, will be an advantage for us as we enter difficult times.”

Outlook

“In light of a troubled global economic environment, we are revising our outlook for 2008,” said Mr. Stroup. “We believe revenue will be about $2.1 billion for the year. We are confident that we are on target to deliver the North American manufacturing cost savings from our 2007 restructuring. We expect that earnings per diluted share, adjusted for restructuring charges, wireless revenue deferral, and nonrecurring purchase accounting effects, will be $2.95 to $3.00. This implies fourth quarter adjusted EPS of $0.54 to 0.59.”

The Company’s previous guidance was for 2008 adjusted diluted EPS in the range $3.15 to $3.35, adjusted for restructuring charges and nonrecurring purchase accounting effects but not adjusted for revenue deferral. The revenue deferral impact for the combined third and fourth quarters (the portion of the year in which Belden owned Trapeze Networks) was estimated to be $0.15 to $0.20. If adjusted for the effect of revenue deferral, previous guidance would have been $3.35 to $3.50.

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 current global economic slowdown has adversely impacted our results of operations and may continue to do so. Turbulence in financial markets has increased the costs to borrow under our variable-rate revolving credit facility, and may continue to 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, 2007, filed with the SEC on February 29, 2008. Belden disclaims any duty to

Page 2

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. Our 8,000 associates worldwide work in copper cable, fiber, wireless technology, connectors, switches and active components to bring voice, video and data to your mission-critical application. With 2007 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 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- and nine- month periods ended September 28, 2008, and September 23, 2007.

• Segment results for the same periods.

• Comparative condensed consolidated cash flow statements for the nine-month periods ended September 28, 2008, and September 23, 2007.

• Condensed consolidated balance sheets as of September 28, 2008, and December 31, 2007.

• A supplemental schedule of adjusted consolidated results for the quarter, year to date, and the prior-year comparable periods, excluding certain items.

Page 3

BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 28, 2008			September 23, 2007			September 28, 2008			September 23, 2007
	(In thousands, except per share data)
Revenues	$	520,494		$	561,611		$	1,588,623		$	1,448,257
Cost of sales		(366,842	)		(403,914	)		(1,122,681	)		(1,048,671	)
Gross profit		153,652			157,697			465,942			399,586
Selling, general and administrative expenses		(85,149	)		(85,567	)		(267,225	)		(224,095	)
Research and development		(15,887	)		(5,504	)		(36,051	)		(10,776	)
Amortization of intangibles		(4,125	)		(2,685	)		(9,286	)		(8,535	)
Gain (loss) on sale of assets		—			8,556			(884	)		8,556
Asset impairment		(753	)		—			(12,302	)		(3,262	)
Operating income		47,738			72,497			140,194			161,474
Interest expense		(8,671	)		(7,561	)		(27,018	)		(18,769	)
Interest income		1,226			803			4,058			5,286
Other income (expense)		813			581			3,967			(864	)
Income before taxes		41,106			66,320			121,201			147,127
Income tax expense		(9,453	)		(16,904	)		(34,178	)		(45,593	)
Net income	$	31,653		$	49,416		$	87,023		$	101,534
Weighted average number of common shares and equivalents:
Basic		44,571			45,084			44,072			44,887
Diluted		47,082			50,131			47,643			50,893
Basic income per share	$	0.71		$	1.10		$	1.97		$	2.26
Diluted income per share	$	0.67		$	0.99		$	1.83		$	2.01
Dividends declared per share	$	0.05		$	0.05		$	0.15		$	0.15

BELDEN INC.
OPERATING SEGMENT INFORMATION

(Unaudited)

	External								Operating
	Customer		Affiliate			Total			Income
	Revenues		Revenues			Revenues			(Loss)
	(In thousands)
Three Months Ended September 28, 2008
Belden Americas	$	202,565	$	17,558		$	220,123		$	46,318
Specialty Products		56,536		15,855			72,391			7,107
Wireless		7,792		38			7,830			(8,784	)
EMEA		164,352		4,587			168,939			12,976
Asia Pacific		89,249		—			89,249			8,843
Total Segments		520,494		38,038			558,532			66,460
Finance and Administration		—		—			—			(10,824	)
Eliminations		—		(38,038	)		(38,038	)		(7,898	)
Total	$	520,494	$	—		$	520,494		$	47,738
Three Months Ended September 23, 2007
Belden Americas	$	231,625	$	18,069		$	249,694		$	44,929
Specialty Products		60,575		26,459			87,034			14,557
EMEA		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	$	561,611	$	—		$	561,611		$	72,497
Nine Months Ended September 28, 2008
Belden Americas	$	588,906	$	56,790		$	645,696		$	117,882
Specialty Products		169,620		52,438			222,058			10,196
Wireless		7,792		38			7,830			(8,784	)
EMEA		548,180		16,282			564,462			56,203
Asia Pacific		274,125		111			274,236			29,054
Total Segments		1,588,623		125,659			1,714,282			204,551
Finance and Administration		—		—			—			(37,047	)
Eliminations		—		(125,659	)		(125,659	)		(27,310	)
Total	$	1,588,623	$	—		$	1,588,623		$	140,194
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
EMEA		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	$	1,448,257	$	—		$	1,448,257		$	161,474

BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(Unaudited)

	Nine Months Ended
	September 28, 2008			September 23, 2007
	(In thousands)
Cash flows from operating activities:
Net income	$	87,023		$	101,534
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		42,394			38,701
Asset impairment		12,302			3,262
Pension funding in excess of pension expense		(1,114	)		(1,724	)
Share-based compensation		10,614			7,516
Provision for inventory obsolescence		6,495			5,731
Loss (gain) on disposal of tangible assets		884			(8,556	)
Excess tax benefits related to share-based compensation		(1,297	)		(7,041	)
Changes in operating assets and liabilities, net of the effects of acquisitions and currency exchange rate changes:
Receivables		(9,297	)		(41,887	)
Inventories		(7,440	)		10,161
Deferred cost of sales		(3,300	)		—
Accounts payable		21,148			15,493
Accrued liabilities		(33,154	)		33,729
Deferred revenue		8,721			—
Accrued taxes		(5,441	)		24,090
Other assets		(1,987	)		(3,309	)
Other liabilities		1,316			(9,384	)
Net cash provided by operating activities		127,867			168,316
Cash flows from investing activities:
Cash used to invest in and acquire businesses		(144,625	)		(588,426	)
Proceeds from disposal of tangible assets		40,488			24,056
Capital expenditures		(32,421	)		(41,483	)
Net cash used in investing activities		(136,558	)		(605,853	)
Cash flows from financing activities:
Proceeds from exercise of stock options		5,957			29,132
Excess tax benefits related to share-based compensation		1,297			7,041
Payments under share repurchase program		(68,336	)		(10,626	)
Cash dividends paid		(6,616	)		(6,750	)
Debt issuance costs		—			(10,212	)
Borrowings under credit arrangements		240,000			546,000
Payments under borrowing arrangements		(110,000	)		(258,000	)
Net cash provided by financing activities		62,302			296,585
Effect of foreign currency exchange rate changes on cash and cash equivalents		1,864			7,125
Increase (decrease) in cash and cash equivalents		55,475			(133,827	)
Cash and cash equivalents, beginning of period		159,964			254,151
Cash and cash equivalents, end of period	$	215,439		$	120,324

BELDEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

	September 28, 2008			December 31, 2007
	(Unaudited)
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	215,439		$	159,964
Receivables		383,527			373,108
Inventories, net		264,851			257,540
Deferred income taxes		21,578			28,578
Other current assets		25,459			17,392
Total current assets		910,854			836,582
Property, plant and equipment, less accumulated depreciation		334,114			369,803
Goodwill		780,558			648,882
Intangible assets, less accumulated amortization		179,194			154,786
Other long-lived assets		60,139			58,796
	$	2,264,859		$	2,068,849
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	220,830		$	190,018
Accrued liabilities		166,698			160,029
Current maturities of long-term debt		—			110,000
Total current liabilities		387,528			460,047
Long-term debt		590,000			350,000
Postretirement benefits		100,869			98,084
Deferred income taxes		51,444			78,140
Other long-term liabilities		14,877			9,915
Stockholders’ equity:
Common stock		503			503
Additional paid-in capital		581,202			638,690
Retained earnings		559,059			478,776
Accumulated other comprehensive income		112,133			93,198
Treasury stock		(132,756	)		(138,504	)
Total stockholders’ equity		1,120,141			1,072,663
	$	2,264,859		$	2,068,849

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), revenue deferrals related to Trapeze Networks, severance charges, adjusted depreciation, asset impairment, gains (losses) recognized on the disposal of certain tangible assets, and one-time tax benefits (charges). 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
	Reported			Adjustments			Adjusted
	(In thousands, except percentages and per share amounts)
Three Months Ended September 28, 2008
Revenues	$	520,494		$	8,721		$	529,215
Gross profit	$	153,652		$	5,754		$	159,406
as a percent of revenues		29.5	%					30.1	%
Operating income	$	47,738		$	8,389		$	56,127
as a percent of revenues		9.2	%					10.6	%
Net income	$	31,653		$	5,173		$	36,826
as a percent of revenues		6.1	%					7.0	%
Net income per diluted share	$	0.67		$	0.11		$	0.78
Three Months Ended September 23, 2007
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	%
Net income	$	49,416		$	(11,015	)	$	38,401
as a percent of revenues		8.8	%					6.8	%
Net income per diluted share	$	0.99		$	(0.22	)	$	0.77

Adjustments for the three months ended September 28, 2008 included pre-tax income impacts for revenue deferrals, purchase accounting effects for acquisitions, asset impairment, and severance of $6.3 million, $1.2 million, $0.8 million, and $0.1 million, respectively.

Adjustments for the three months ended September 23, 2007 included a pre-tax gain on sales of assets and adjusted depreciation of $8.6 million and $0.4 million, respectively.

	As
	Reported			Adjustments		Adjusted
	(In thousands, except percentages and per share amounts)
Nine Months Ended September 28, 2008
Revenues	$	1,588,623		$	8,721	$	1,597,344
Gross profit	$	465,942		$	11,996	$	477,938
as a percent of revenues		29.3	%				29.9	%
Operating income	$	140,194		$	37,353	$	177,547
as a percent of revenues		8.8	%				11.1	%
Net income	$	87,023		$	27,811	$	114,834
as a percent of revenues:		5.5	%				7.2	%
Net income per diluted share	$	1.83		$	0.58	$	2.41
Nine Months Ended September 23, 2007
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	%
Net income	$	101,534		$	1,421	$	102,955
as a percent of revenues		7.0	%				7.1	%
Net income per diluted share	$	2.01		$	0.03	$	2.04

Adjustments for the nine months ended September 28, 2008 included pre-tax charges for asset impairment, severance associated with the Voluntary Separation Program, revenue deferrals, purchase accounting effects for acquisitions, pension settlements, adjusted depreciation, severance and other restructuring costs, and a loss on the disposal of certain tangible assets of $12.3 million, $6.5 million, $6.3 million, $1.2 million, $2.0 million, $0.7 million, $7.0 million, and $1.4 million, respectively.

Adjustments for the nine months ended September 23, 2007 included pre-tax income impacts of purchase accounting effects for acquisitions, asset impairment, severance, and adjusted depreciation of $12.2 million, $3.3 million, $1.2 million, and $1.2 million, respectively, partially offset by a $8.3 million pre-tax gain on sales of assets and a $0.2 million pre-tax pension credit.