Exhibit 99.1
(BELDEN CDT LOGO) NEWS RELEASE Belden CDT Inc.
7701 Forsyth Boulevard, Suite 800
St. Louis, Missouri 63105
314-854-8000
www.beldencdt.com
July 28, 2005
BELDEN CDT CONTINUES GROWTH IN REVENUE AND EARNINGS IN SECOND QUARTER
ST. LOUIS, Missouri - Belden CDT Inc. (NYSE:BDC) announced results of its second
quarter ended June 30, 2005. Revenue for the quarter was $337.7 million,
operating profit was $18.7 million, or 5.5 percent of sales, and income from
continuing operations was $10.5 million, or $0.21 per diluted share. This result
included $6.5 million in pretax expenses related to merger integration
activities and the planned retirement (previously announced) of the Company's
Chief Executive Officer. These charges amounted to $0.08 per diluted share.
On July 15, 2004, the Company, formerly called Cable Design Technologies
Corporation (CDT), merged with Belden Inc. (Belden) and changed its name to
Belden CDT Inc. For accounting purposes, the Company treated the merger as an
acquisition by Belden. Results of the legacy CDT operations are included in 2004
results from July 16 onwards. Prior-year results in this release (other than pro
forma results) reflect the results of Belden only.
Highlights of the second quarter of 2005 include the following:
o Revenue of $337.7 million increased 9.2 percent sequentially
and 8.3 percent year over year from pro forma combined revenue
of $311.9 million in the second quarter of 2004.
o Operating earnings were 5.5 percent of revenue as reported.
Excluding special charges, operating earnings were 7.5 percent
of sales.
o The Company completed the previously announced closing of
three manufacturing facilities, a milestone in its progress
toward the goal of $35 million of annual net cost savings from
merger synergies.
o Real estate sales generated $23.1 million in cash and an
after-tax gain of $8.8 million in discontinued operations.
o The Company repurchased 713,300 shares of its common stock at
an average price of $20.54 per share. The Board of Directors
authorized on May 21, 2005, a share repurchase program of up
to $125 million.
YEAR TO DATE RESULTS
For the six months ended June 30, 2005, revenue was $646.8 million. Operating
earnings for the period were $34.9 million, and income from continuing
operations was $19.1 million, or $0.38 per diluted share. These results included
$8.6 million in pretax expenses related to merger integration and executive
succession, which together amounted to $0.10 per diluted share.
MANAGEMENT COMMENT
"We are executing our post-merger cost reduction plans very effectively and we
are achieving our targets," said C. Baker Cunningham, President and Chief
Executive Officer. "The closure of three plants in connection with the merger is
now complete, and in fact, two of the three plants have now been sold, as has
our former communications cable plant in Phoenix, AZ. We have made significant
progress in consolidating and rationalizing our manufacturing capacity, and we
are generally experiencing efficient utilization of capacity, especially in
North America. Europe has now been moderately and increasingly profitable four
quarters in a row, largely as a result of our integration efforts."
ADJUSTED RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2005
<Table>
<Caption>
Adjusted
As Reported Adjusted Pro Forma Combined
Three Months Ended Adjustments Three Months Ended Three Months Ended
In thousands June 30, 2005 (1) June 30, 2005 June 30, 2004(2)
- ------------ ------------------ ------------ ------------------ ------------------
Results of Continuing Operations
Revenues $ 337,701 -- $ 337,701 $ 311,860
Operating Profit 18,734 6,522 25,256 18,445
Income from
Continuing
Operations 10,546 4,056 14,602 11,141
Income from
Continuing
Operations per
Diluted Share $ 0.21 $ 0.08 $ 0.29 $ 0.22
</Table>
(1) Merger-related costs and the expenses associated with executive
succession, $6.5 million.
(2) Pro forma results, as if Belden and CDT were combined at the beginning
of the second quarter of 2004, restated for discontinued operations,
the change in inventory accounting method from LIFO to FIFO,
merger-related costs, and the gain on the 2004 sale of a Belden
European operation.
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ADJUSTED RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2005
<Table>
<Caption>
As Reported Adjusted Six Adjusted Pro Forma
Six Months Ended Adjustments Months Ended Combined Six Months
In thousands June 30, 2005 (3) June 30, 2005 Ended June 30, 2004(4)
- ------------ ------------------ ------------ ------------------ ----------------------
Results of Continuing Operations
Revenues $ 646,812 -- $ 646,812 $ 607,140
Operating Profit 34,935 8,567 43,502 31,006
Income from
Continuing
Operations 19,070 5,354 24,424 14,443
Income from
Continuing
Operations per
Diluted Share $ 0.38 $ 0.10 $ 0.48 $ 0.30
</Table>
(3) Merger-related costs and the expenses associated with executive
succession, $8.6 million.
(4) Pro forma results, as if Belden and CDT were combined at the beginning
of 2004, restated for discontinued operations, the change in inventory
accounting method from LIFO to FIFO, merger-related costs, and the gain
on the 2004 sale of a Belden European operation.
ELECTRONICS SEGMENT
External customer revenue of the Electronics segment for the quarter ended June
30, 2005 was $197.6 million, and total sales including sales to affiliates were
$221.5 million. Operating profit of the segment was $27.0 million, or 12.2
percent of total revenues. Included in this result were merger-related costs of
$0.8 million. Without these charges, operating income of the segment for the
quarter was 12.6 percent of sales. Total revenue and operating income of this
segment in the second quarter of 2004 were $147.5 million and $14.2 million,
respectively.
Segment revenue increased year over year because of the merger, price increases
implemented in North America and Europe last year and again this year, and
changes in currency exchange rates. Volume for the segment, absent the merger,
was only slightly higher year over year, as increasing sales of products with
video, sound and security applications and industrial applications in North
America were mostly offset by lower volumes in Europe due to discontinuation of
certain lower-margin products and to a difficult comparison as the prior-year
period included shipments for the Athens Olympic Games.
"The strongest revenue growth in the Electronics segment occurred in video,
sound and security cable products," said Mr. Cunningham, "followed by industrial
cable. We continue to enjoy strong demand for security products related to
increased focus by businesses and individuals on video surveillance and access
control. Our industrial products showed good strength primarily in Canada."
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Year to date, external customer revenue of the Electronics segment was $382.5
million, and total revenue including sales to affiliates was $432.6 million.
Operating profit of the segment year-to-date was $47.6 million including $2.3
million of merger-related costs. In the six months ended June 30, 2004, revenue
of the segment was $285.4 in total and operating earnings were $26.6 million.
NETWORKING SEGMENT
Revenue from external customers of the Networking segment for the quarter ended
June 30, 2005 was $140.1 million, and total revenue, including sales to
affiliates, was $144.2 million. Operating profit for the segment was $8.7
million, or 6.0 percent of total revenue. Excluding merger-related costs of $0.4
million, operating profit of the Networking segment was $9.1 million or 6.3
percent of sales for the quarter. Total revenues and operating profit in the
second quarter of 2004 were respectively $61.1 million and $4.0 million for this
segment. The year-over-year increase in segment revenue was due to the impact of
the merger, to improved pricing, and to currency translation effects.
"We are continuing to gain acceptance for our Belden IBDN brand and to get new
project business, including additional sales of our top-of-the-line Belden IBDN
System 10-GX," said Mr. Cunningham. "We are experiencing strong volume in our
Mohawk brand, which is our open-architecture data cable brand, and Nordx, the
leading brand in Canada. In Europe, volume was a little better than we expected
in data networking cable, and the launch of the Belden IBDN brand is
progressing. We had stronger than expected recovery in European telecom cable
sales compared with the depressed level of the first quarter," he said.
Year to date, external customer revenue of the Networking segment was $264.3
million and total revenue, including affiliate sales, was $270.1 million.
Operating profit of the segment year-to-date was $15.6 million including $0.7
million of merger-related costs. For the first six months of 2004, total revenue
of the Networking segment was $118.7 million and operating profit was $8.2
million.
OUTLOOK
"We are maintaining our revenue outlook for the year 2005, which is a 5 to 10
percent increase over 2004 pro forma combined volume. This guidance anticipates
modest revenue increases sequentially in the third quarter and again in the
fourth quarter of 2005," Mr. Cunningham said.
"We still have some work ahead of us this year to complete the achievement of
the expected $35 million in merger synergies. For example, we have manufacturing
systems changes in progress, and there is some further implementation work
required to get the full benefit of the manufacturing moves we have made," he
continued. "Nevertheless, we have completed in the second quarter the three
plant closings that contribute a significant proportion of the merger synergy
savings. Mainly for this reason, we expect to achieve sequential improvement in
operating margins in each of the next two quarters. We expect that our operating
margins for each of the next two quarters will be 9 to 9.5 percent of sales. In
most of our business units we
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are implementing early third-quarter price increases that will help us offset
rising material costs and keep our operating margins on this improving track
during the second half of the year," Mr. Cunningham 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 significantly from these
expectations. Some of the factors that may cause actual results to differ from
the Company's expectations include, general economic conditions, the cost of raw
materials including copper and plastics and the degree to which the Company will
be able to compensate for rising costs through the pricing of its products,
demand for the Company's products, the Company's ability to completely achieve
the expected merger synergies, the actions of customers, distributors and
competitors, and other factors. The Company announced on May 17, 2005, that its
President and Chief Executive Officer plans to retire when a successor has been
identified by the Board of Directors. The timing of the executive transition is
unknown. For a more complete discussion of risk factors, please see Belden CDT's
Annual Report on Form 10-K for the year ended December 31, 2004, filed with the
SEC on March 31, 2005. Belden CDT Inc. assumes no responsibility to update any
forward-looking statements as a result of new information or future
developments.
ABOUT BELDEN CDT
Belden CDT Inc. is one of the largest U.S.-based manufacturers of high-speed
electronic cables and focuses on products for the specialty electronics and data
networking markets, including connectivity. The Company, formed in July 2004
through a merger of equals, had combined pro forma sales in 2004 of $1.2
billion. Belden CDT's 2004 annual report is available at www.beldencdt.com.
CONTACT: Belden CDT Inc.
Dee Johnson, Director of Investor Relations
314-854-8054
www.beldencdt.com
Following are comparative consolidated income statements of Belden CDT Inc. for
the three- and six-month periods ended June 30, 2005 and June 30, 2004, segment
information for the same periods, and condensed consolidated balance sheets as
of June 30, 2005, and December 31, 2004.
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BELDEN CDT INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<Table>
<Caption>
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- --------------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
(in thousands, except per share data)
Revenues $ 337,701 $ 184,307 $ 646,812 $ 354,410
Cost of sales (262,487) (150,202) (506,467) (286,207)
---------- ---------- ---------- ----------
Gross profit 75,214 34,105 140,345 68,203
Selling, general and administrative expenses (56,480) (24,229) (105,410) (49,458)
---------- ---------- ---------- ----------
Operating earnings 18,734 9,876 34,935 18,745
Interest expense, net (2,564) (3,167) (5,484) (6,333)
Minority interest (169) -- (336) --
Other nonoperating earnings -- 1,732 -- 1,732
---------- ---------- ---------- ----------
Income from continuing operations before taxes 16,001 8,441 29,115 14,144
Income tax expense (5,455) (2,246) (10,045) (4,186)
---------- ---------- ---------- ----------
Income from continuing operations 10,546 6,195 19,070 9,958
Loss from discontinued operations (1) (544) (5,823) (2,425) (7,319)
Gain on disposal of discontinued operations (2) 8,763 3,020 15,163 3,020
========== ========== ========== ==========
Net income $ 18,765 $ 3,392 $ 31,808 $ 5,659
========== ========== ========== ==========
Weighted average number of common shares and equivalents:
Basic 46,971 25,546 46,989 25,504
Diluted 53,472 25,832 53,568 25,827
========== ========== ========== ==========
Basic income (loss) per share:
Continuing operations $ .22 $ .24 $ .41 $ .39
Discontinued operations (.01) (.23) (.05) (.29)
Disposal of discontinued operations .19 .12 .32 .12
Net income per share .40 .13 .68 .22
========== ========== ========== ==========
Diluted income (loss) per share:
Continuing operations $ .21 $ .24 $ .38 $ .39
Discontinued operations (.01) (.23) (.04) (.29)
Disposal of discontinued operations .16 .12 .28 .12
Net income per share .36 .13 .62 .22
========== ========== ========== ==========
</Table>
(1) Net of income tax benefit of $324, $3,276, $1,281 and $4,117,
respectively.
(2) Net of income tax expense of $4,929, $1,699, $8,529 and $1,699,
respectively.
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BELDEN CDT INC.
SEGMENT INFORMATION
(Unaudited)
(in thousands)
THREE MONTHS ENDED JUNE 30, 2005
<Table>
<Caption>
TOTAL
FINANCE AND CONTINUING
ELECTRONICS NETWORKING ADMINISTRATION ELIMINATIONS OPERATIONS
------------ ------------ -------------- ------------ ------------
EXTERNAL CUSTOMER REVENUES $ 197,618 $ 140,083 $ -- $ -- $ 337,701
AFFILIATE REVENUES 23,917 4,123 -- (28,040) --
------------ ------------ ------------ ------------ ------------
TOTAL REVENUES $ 221,535 $ 144,206 $ -- $ (28,040) $ 337,701
============ ============ ============ ============ ============
OPERATING EARNINGS (LOSS) $ 27,007 $ 8,667 $ (11,942) $ (4,998) $ 18,734
============ ============ ============ ============ ============
</Table>
Three Months Ended June 30, 2004
<Table>
<Caption>
Total
Finance and Continuing
Electronics Networking Administration Eliminations Operations
------------ ------------ -------------- ------------ ------------
External customer revenues $ 123,416 $ 60,891 $ -- $ -- $ 184,307
Affiliate revenues 24,043 208 -- (24,251) --
------------ ------------ ------------ ------------ ------------
Total revenues $ 147,459 $ 61,099 $ -- $ (24,251) $ 184,307
============ ============ ============ ============ ============
Operating earnings (loss) $ 14,179 $ 4,031 $ (4,058) $ (4,276) $ 9,876
============ ============ ============ ============ ============
</Table>
SIX MONTHS ENDED JUNE 30, 2005
<Table>
<Caption>
TOTAL
FINANCE AND CONTINUING
ELECTRONICS NETWORKING ADMINISTRATION ELIMINATIONS OPERATIONS
------------ ------------ -------------- ------------ ------------
EXTERNAL CUSTOMER REVENUES $ 382,478 $ 264,334 $ -- $ -- $ 646,812
AFFILIATE REVENUES 50,152 5,805 -- (55,957) --
------------ ------------ ------------ ------------ ------------
TOTAL REVENUES $ 432,630 $ 270,139 $ -- $ (55,957) $ 646,812
============ ============ ============ ============ ============
OPERATING EARNINGS (LOSS) $ 47,582 $ 15,556 $ (17,912) $ (10,291) $ 34,935
============ ============ ============ ============ ============
</Table>
Six Months Ended June 30, 2004
<Table>
<Caption>
Total
Finance and Continuing
Electronics Networking Administration Eliminations Operations
------------ ------------ -------------- ------------ ------------
External customer revenues $ 236,366 $ 118,044 $ -- $ -- $ 354,410
Affiliate revenues 49,017 646 -- (49,663) --
------------ ------------ ------------ ------------ ------------
Total revenues $ 285,383 $ 118,690 $ -- $ (49,663) $ 354,410
============ ============ ============ ============ ============
Operating earnings (loss) $ 26,637 $ 8,213 $ (8,266) $ (7,839) $ 18,745
============ ============ ============ ============ ============
</Table>
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BELDEN CDT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
<Table>
<Caption>
JUNE 30, December 31,
2005 2004
------------ ------------
(in thousands) (UNAUDITED)
ASSETS
Current assets
Cash and cash equivalents $ 220,507 $ 188,798
Receivables 205,571 174,554
Inventories 238,824 227,034
Deferred income taxes 25,522 15,911
Other current assets 7,726 8,883
Current assets of discontinued operations 11,392 34,138
------------ ------------
Total current assets 709,542 649,318
Property, plant and equipment, less
accumulated depreciation 324,820 338,247
Goodwill, less accumulated amortization 285,044 286,163
Other intangible assets, less accumulated amortization 74,270 78,266
Other long-lived assets 5,690 6,460
Long-lived assets of discontinued operations 14,837 36,984
------------ ------------
$ 1,414,203 $ 1,395,438
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 209,641 $ 185,035
Current maturities of long-term debt 15,327 15,702
Current liabilities of discontinued operations 6,615 17,534
------------ ------------
Total current liabilities 231,583 218,271
Long-term debt 231,052 232,823
Postretirement benefits other than pensions 30,716 30,089
Deferred income taxes 84,901 68,158
Other long-term liabilities 31,644 25,340
Long-term liabilities of discontinued operations 250 1,516
Minority interest 8,208 9,241
Stockholders' equity
Preferred stock -- --
Common stock 503 502
Additional paid-in capital 535,173 531,984
Retained earnings 278,734 252,114
Accumulated other comprehensive income (loss) (2,571) 27,862
Unearned deferred compensation (984) (2,462)
Treasury stock (15,006) --
------------ ------------
Total stockholders' equity 795,849 810,000
------------ ------------
$ 1,414,203 $ 1,395,438
============ ============
</Table>
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