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

First Quarter 2009 Highlights

• Adjusted net income per diluted share was $0.16 in the quarter.

• Free cash flow for the first quarter, excluding restructuring related severance payments of $22.8 million, was $25.9 million.

• First quarter adjusted operating margin was 4.9 percent. Excluding the wireless segment, adjusted operating margin was 7.7 percent.

• The Company opened its new manufacturing facility in Suzhou, China, its largest facility outside of North America.

• Revenue and EPS, adjusted for certain items, for the second quarter of 2009 are expected to be between $340 million and $350 million and $0.25 and $0.30 per share, respectively.

St. Louis, Missouri — Wednesday, April 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 first quarter.

First Quarter 2009 Results

The Company reported first quarter 2009 revenue of $328.5 million and an operating loss of $37.6 million, compared to revenue and operating income of $511.8 million and $26.6 million in the first quarter of 2008, respectively. The Company reported a net loss of $32.5 million, or ($0.70) per diluted share, down from net income of $12.9 million, or $0.27 per diluted share, in the prior year period. The current quarter’s revenue included $19.0 million of unfavorable currency translation as compared to the prior year first quarter. Cash flow from operations was $12.6 million during the quarter, and net of capital expenditures was $3.1 million.

During the quarter, Belden recorded pre-tax non-cash asset impairment charges of $24.7 million, pre-tax severance charges of $25.9 million, and other pre-tax costs of $4.6 million, all of which were associated with the 2008 global restructuring plan and its new first quarter actions. In the first quarter of 2008, the Company incurred pre-tax charges of $25.2 million for severance, asset impairment, and other costs associated with restructuring actions in North America and Europe.

Adjusted for these items, operating income in the first quarter of 2009 was $16.1 million or 4.9 percent of revenue, compared to $51.3 million or 10.0 percent a year ago. Adjusted net income per diluted share was $0.16 in the quarter, compared to $0.67 in the first quarter of 2008. See the attached schedule, Adjusted Operating Results, for a reconciliation of GAAP results to adjusted results.

“Despite an economic environment generally as challenging as we expected, we are pleased with the overall performance of our business,” said John Stroup, President and Chief Executive Officer of Belden. “However, the environment in Europe has proven to be more demanding than initially expected. Accordingly, we are taking additional actions to size our business for what we expect to be a longer period of economic weakness.”

New First Quarter 2009 Restructuring Activities

During the quarter, the Company announced the following restructuring actions which resulted in non-cash asset impairment of $21.2 million pre-tax and severance of $13.8 million pre-tax:

• The closure of connector manufacturing facilities in Germany and the transfer of their production to facilities in Eastern Europe.

• The departure of Wolfgang Babel, the former President of Belden Europe, Middle East and Africa (EMEA). John Stroup, President and Chief Executive Officer of Belden will lead the EMEA business segment until a permanent replacement is found.

Stroup commented, “Although we expect the economy to remain challenging throughout the year, we are off to a strong start on our cost reduction programs. As a result of the hard work of our associates around the globe, we continue to make investments in our Lean enterprise and organic growth strategic initiatives.”

Credit Facility Amendment

During the quarter the Company amended its $350 million senior secured revolving credit facility. In general, the amendment changed the definition of EBITDA used in the computation of the 3.5 gross debt-to-EBITDA leverage ratio covenant in the agreement and increased the cost of borrowings under the facility by 100 basis points.

The amendment provides the Company with additional flexibility in managing liquidity through the weaker global demand in its served markets. This action, in conjunction with the Company’s strong cash generation capacity and its $224.4 million cash on hand, provides the Company with the liquidity necessary to implement its long-term strategies.

Outlook

The Company expects second 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 $340 million and $350

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million and $0.25 and $0.30 per share, respectively.

“While still difficult, we have seen some stabilization in our markets, and we expect our channel partners to continue carefully managing their inventory levels as we jointly work our way through this difficult period.”

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 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 your mission-critical application. 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
	March 29, 2009			March 30, 2008
	(In thousands, except per share amounts)
Revenues	$	328,512		$	511,826
Cost of sales		(244,319	)		(366,009	)
Gross profit		84,193			145,817
Selling, general and administrative expenses		(76,697	)		(95,163	)
Research and development		(16,555	)		(9,071	)
Amortization of intangibles		(3,865	)		(2,552	)
Asset impairment		(24,723	)		(11,549	)
Loss on sale of assets		—			(884	)
Operating income (loss)		(37,647	)		26,598
Interest expense		(7,323	)		(8,343	)
Interest income		364			957
Other income (expense)		(251	)		1,168
Income (loss) before taxes		(44,857	)		20,380
Income tax benefit (expense)		12,403			(7,495	)
Net income (loss)	$	(32,454	)	$	12,885
Weighted average number of common shares and equivalents:
Basic		46,526			44,139
Diluted		46,526			48,377
Basic income (loss) per share	$	(0.70	)	$	0.29
Diluted income (loss) per share	$	(0.70	)	$	0.27
Dividends declared per share	$	0.05		$	0.05

BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)

	External								Operating
	Customer		Affiliate			Total			Income
Three Months Ended March 29, 2009	Revenues		Revenues			Revenues			(Loss)
			(In thousands)
Americas	$	182,210	$	7,991		$	190,201		$	24,658
Wireless		12,003		—			12,003			(8,322	)
EMEA		88,061		12,473			100,534			(43,245	)
Asia Pacific		46,238		—			46,238			3,334
Total Segments		328,512		20,464			348,976			(23,575	)
Corporate expenses		—		—			—			(8,357	)
Eliminations		—		(20,464	)		(20,464	)		(5,715	)
Total	$	328,512	$	—		$	328,512		$	(37,647	)
Three Months Ended March 30, 2008
Americas	$	256,594	$	20,360		$	276,954		$	21,661
Wireless		—		—			—			—
EMEA		161,530		20,898			182,428			16,831
Asia Pacific		93,702		—			93,702			11,287
Total Segments		511,826		41,258			553,084			49,779
Corporate expenses		—		—			—			(13,896	)
Eliminations		—		(41,258	)		(41,258	)		(9,285	)
Total	$	511,826	$	—		$	511,826		$	26,598
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
Three Months Ended September 28, 2008
Americas	$	277,235	$	13,692		$	290,927		$	51,076
Wireless		7,792		38			7,830			(8,784	)
EMEA		139,489		20,818			160,307			11,674
Asia Pacific		95,978		—			95,978			11,755
Total Segments		520,494		34,548			555,042			65,721
Corporate expenses		—		—			—			(10,824	)
Eliminations		—		(34,548	)		(34,548	)		(7,159	)
Total	$	520,494	$	—		$	520,494		$	47,738
Three Months Ended December 31, 2008
Americas	$	228,840	$	10,499		$	239,339		$	(14,799	)
Wireless		5,930		260			6,190			(45,533	)
EMEA		104,965		20,156			125,121			(271,282	)
Asia Pacific		77,532		—			77,532			(104,910	)
Total Segments		417,267		30,915			448,182			(436,524	)
Corporate expenses		—		—			—			(37,842	)
Eliminations		—		(30,915	)		(30,915	)		(8,016	)
Total	$	417,267	$	—		$	417,267		$	(482,382	)

BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited)

	Three Months Ended
	March 29, 2009			March 30, 2008
	(In thousands)
Cash flows from operating activities:
Net income (loss)	$	(32,454	)	$	12,885
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		13,288			13,758
Share-based compensation		2,020			3,287
Provision for inventory obsolescence		2,548			1,660
Asset impairment		24,723			11,549
Loss on disposal of tangible assets		—			884
Amortization of discount on convertible subordinated notes		—			524
Pension funding in excess of pension expense		(2,318	)		(2,650	)
Tax deficiency (benefit) related to share-based compensation		1,104			(895	)
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses:
Receivables		40,847			1,091
Inventories		29,497			(3,927	)
Deferred cost of sales		228			—
Accounts payable		(31,204	)		(8,881	)
Accrued liabilities		(18,372	)		172
Deferred revenue		(49	)		—
Accrued taxes		(11,209	)		7,956
Other assets		(2,347	)		(1,695	)
Other liabilities		(3,679	)		(5,026	)
Net cash provided by operating activities		12,623			30,692
Cash flows from investing activities:
Capital expenditures		(9,554	)		(6,905	)
Proceeds from disposal of tangible assets		—			39,140
Cash used for other investing activities		(18	)		(61	)
Net cash provided by (used for) investing activities		(9,572	)		32,174
Cash flows from financing activities:
Cash dividends paid		(2,373	)		(2,251	)
Debt issuance costs		(1,541	)		—
Tax benefit (deficiency) related to share-based compensation		(1,104	)		895
Payments under share repurchase program		—			(36,298	)
Proceeds from exercise of stock options		—			4,300
Net cash used for financing activities		(5,018	)		(33,354	)
Effect of foreign currency exchange rate changes on cash and cash equivalents		(1,003	)		7,366
Increase (decrease) in cash and cash equivalents		(2,970	)		36,878
Cash and cash equivalents, beginning of period		227,413			159,964
Cash and cash equivalents, end of period	$	224,443		$	196,842

Free cash flow is defined as net cash provided by operating activities less capital expenditures. Free cash flow was $3,069 ($12,623 - $9,554) and $23,787 ($30,692 - $6,905) for the three months ended March 29, 2009 and March 30, 2008, respectively.

BELDEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

	March 29, 2009			December 31, 2008
	(Unaudited)
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	224,443		$	227,413
Receivables		248,393			292,236
Inventories, net		181,228			216,022
Deferred income taxes		19,450			22,606
Other current assets		42,710			34,826
Total current assets		716,224			793,103
Property, plant and equipment, less accumulated depreciation		301,998			324,569
Goodwill		316,719			321,478
Intangible assets, less accumulated amortization		143,621			156,025
Other long-lived assets		51,723			53,388
	$	1,530,285		$	1,648,563
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	128,484		$	160,744
Accrued liabilities		152,659			180,801
Total current liabilities		281,143			341,545
Long-term debt		590,000			590,000
Postretirement benefits		121,006			120,256
Deferred income taxes		1,248			4,270
Other long-term liabilities		18,531			21,624
Stockholders’ equity:
Common stock		503			503
Additional paid-in capital		584,026			585,704
Retained earnings		72,145			106,949
Accumulated other comprehensive income (loss)		(7,903	)		10,227
Treasury stock		(130,414	)		(132,515	)
Total stockholders’ equity		518,357			570,868
	$	1,530,285		$	1,648,563

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, 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 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 March 29, 2009	Reported			Adjustments			Adjusted
	(In thousands, except percentages and per share amounts)
Revenues	$	328,512		$	(49	)	$	328,463
Gross profit	$	84,193		$	17,895		$	102,088
as a percent of revenues		25.6	%					31.1	%
Operating income (loss)	$	(37,647	)	$	53,727		$	16,080
as a percent of revenues		-11.5	%					4.9	%
Net income (loss)	$	(32,454	)	$	39,712		$	7,258
as a percent of revenues		-9.9	%					2.2	%
Net income (loss) per diluted share	$	(0.70	)	$	0.86		$	0.16
Three Months Ended March 30, 2008
Revenues	$	511,826		$	—		$	511,826
Gross profit	$	145,817		$	3,956		$	149,773
as a percent of revenues		28.5	%					29.3	%
Operating income	$	26,598		$	24,688		$	51,286
as a percent of revenues		5.2	%					10.0	%
Net income	$	12,885		$	19,298		$	32,183
as a percent of revenues		2.5	%					6.3	%
Net income per diluted share	$	0.27		$	0.40		$	0.67

Adjustments for the three months ended March 29, 2009 included pre-tax operating charges for severance, asset impairment, and other costs of $25.9 million, $24.7 million, and $3.1 million, respectively, and pre-tax non-operating charges of $1.5 million.

Adjustments for the three months ended March 30, 2008 included pre-tax operating charges for severance, asset impairment, loss on the disposal of certain tangible assets, and other costs of $11.9 million, $11.5 million, $0.9 million, and $0.4 million, respectively, and pre-tax non-operating charges of $0.5 million.