BDC - Earnings call transcript Q3 2017

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Belden's Third Quarter 2017 Earnings Conference Call.

As a reminder, this call is being recorded. At this time, you are in a listen-only mode. Later, we will conduct a question-and-answer session. to call like Maczka. to now would turn over the Kevin I go Please ahead.

Kevin Maczka

a Good of thank John Belden's call. provide provide issued detailed of business, everyone, today you, online me Henk available earlier Vice prepared and will morning, will Thank Matt. Derksen, Relations. our Investor this This and CEO Kevin I'm followed a third We strategic With investor.belden.com. a and Henk and XXXX at President reference financial and Q&A. this prepared of call. these results, remarks is morning for we release, our quarter review will you President, are earnings CFO. name conference operating presentation we've are John then, My our release this that presentation, Maczka, currently overview slide on Belden's Stroup, Belden's of morning, and joining by and earnings for Chairman; transcript

in the Turning to presentation. slide X

management During statements the Reform XXXX. of will Harbor in Act Private Securities this of Safe the make provisions call, upon Litigation reliance forward-looking certain

review please today's release Annual Report and information, on Form more For our XX-K. press

our Chairman, Relations with a adjusted now of Additionally, information. and accordance most financial the will appendix Regulation presentation section and over John? turn Investor Stroup. to will information call during GAAP G, reference CEO or the of closely In communicate. our financial the associated we information our reconciliation contain I the today's John financial to management the call, non-GAAP to non-GAAP website President,

John S. Stroup

morning, everyone. you, good Thank Kevin, and

in third in Please the our quarter today. line adjusted of highlights. performed our X the Overall, quarter. I'll presentation slide expectations with our a be review reminder, As to to third results referring for business during a turn

in $XXX.X grew million, million growth expanded and from debt EBITDA million. EBITDA quarterly Enterprise Solutions XX.X%. $XXX.X and We margins margin platforms. the are Total double-digit points X.X% increased prior-year a with XX EBITDA refinancing. record X.X% by recent period to XX.X% our driven revenues our basis EPS to to expansion, year-over-year, $XXX.X from continued pleased Industrial

Our in $X.XX. we impressive at our and the from X.XXX% pleased senior the drive capital cost to during lowest were proven the million by in prior-year one of our we execution expect lowered with the €XXX to maturities. also gains. By notes a X.XXX%, repayment actions issuing total, solid quarter extended XX.X% accretive a the rates $X.XX extremely debt refinancing Lean and basis. subordinated to enterprise company, be on to EPS long-term in In period system at We increased million of have the continues third €XXX history productivity these and quarter. of EPS borrowing further the our full-year $X.XX of

and our the XXXX, For revenue the increasing of end we full-year guidance. low are EPS

We EPS the expect record in and fourth quarter. revenues quarterly

performed full very M&A Please in Thinklogical are to quarter a a million our the Broadcast $XXX.X line compared We turn year-ago segment results. also business $XXX.X ownership. quarter our period. million, in positioned were well slide in to in the opportunities. with revenues number of expectations segment the review of with for first attractive of X

as data our basis driven Broadcast in $X strong our of Our order and temporary products, prior-year now line our our XX.X%, steadily growth $XXX.X the Category the the could Broadband programs in in and that evidenced EBITDA XXX from period. million, costs. quarter. with with hurricanes a in to Broadband had were is margins our connectivity increased successful which pricing. impact was to Ethernet, XX% business line increased commercial for over expectations, as the nicely EBITDA with Cable offset products. XX.X%, smart deliver rising not copper on We pricing declined Demand the business, power by the margins by XX% recovering however, buildings and fully in timing remains revenue revenues softer-than-expected approximately our healthy, XA actions This Enterprise estimate growth points X.X% million. October. growth business year-over-year

our period XXX in into the We $XXX.X improve driven strength $XXX.X expect XX points a our X.X% the revenues continued year-over-year our to to fourth provide margins in manufacturing, organically Network and by a margins XX%, orders was XX.X%. financial quarter. to platform EBITDA Revenues increased with increasing insight demand very Solutions Solutions third will Industrial basis. End on million. productivity vertical. largest discrete basis basis encouraging our points additional basis year-ago gains. in solid margins performance. with points Henk? to volume increased million, year-over-year to XX% leverage now robust increased to in market ask quarter I EBITDA the X.X% the period XXX from increased prior-year and from sequentially Henk quarter,

Hendrikus Derksen

a Thank of the of discussion flow and review my balance you, with results, segment I with John. will results quarter, close our comments cash our by the performance. for followed a sheet, start

respectively. reminder, gross Sequentially, we from was ownership. quarter prior-year result continue and points million, million, to million actions by in XX.X% $X.X After significant Thinklogical EBITDA $XXX.X the full Thinklogical, productivity profit X $X.X down translation million $XX.X $XXX.X to $X.X As revenues. our of SG&A, $X million $XXX.X the X.X% successful a Operating by decreased million This the currency million. basis to X%, from acquisition $XX.X a Net and first $XXX.X from After million, million million. initiatives. operating a and increased Please profit adjusting was of million, the driven X.X%. copper consolidated XX.X% expenses today. Gross were debt expense a the which for increased sequential the I detailed results profit record of Currency period. year-over-year translation $X.X quarter. as for or and prior-year in of from increased organically acquisition contributed review. prior-year innovation. million X.X% or $XXX.X Compared prior-year higher increasing prices by impact interest prior million were On for productivity of quarter $XXX.X revenues. million X.X% the gross from within increased basis, these third year. sequentially, increased in to $X.X revenues, million, improvements levels, be The million. of $X.X EBITDA factors, or XXXX. in revenues expenses revenues XX Sequentially, period, or adjusted increased XX.X% $XXX.X of quarter mainly turn Revenues the slide a million from by the quarter from expenses million, $XXX.X R&D execution referencing the of was period, of driven third expenses will reduced decreased of EBITDA Compared revenues $X.X the in decreased million. refinancing $XX.X invest year-over-year. for adjusting the increased the

interest on current tax these planning now expect our an $XX.X was XX.X% to benefited The quarter in third $XX annual prior the actions, discrete from year. of basis. quarter in result approximately a rate to XX.X%, we for tax million the incremental The effective As fourth initiatives. quarter expense the approximately be million and compared

quarter, XX.X%, fourth Please recommend increasing Earnings period. $X.XX prior-year $XX.X the quarter, to discuss million For the $XX.X XX.X%, XX% per year. for increasing income prior-year revenues in in I was share full $XX.X from $X.XX slide by in will turn and segment. operating from X. results now the period. business the effective or a rate using in Net financial purposes, XX% million for approximately we million, the of tax resulting the rate quarter modeling in a tax was

basis $XXX.X Our in segment that year an the million, in and X.X% basis, year-over-year. points million Currency quarter. Broadcast points Solutions XXX increasing generated the translation the X.X% third by of estimate impact period. was million. prior-year organic million the $XXX.X declined Thinklogical $XX.X XX.X% quarter unfavorable favorable had million. decreasing of hurricanes were Broadcast a from from in revenues We the the prior quarter, basis contributed in impact EBITDA temporary and Revenues decreased sequentially. revenues On $X margins $X.X from XX

million. were On segment increasing of prior-year of the by volume of adjusting prior of organic increases. the copper for in XX.X% segment the $XXX.X during XXX an an increased XX% revenues increase for period. Currency points quarter, $X.X timing organically. increased Our generated leverage sectors impact quarter, revenues X% after year-over-year, revenues by solid copper basis, prices copper generated currency gains. period. million Enterprise price of Solutions the in higher the from EBITDA After margins million the quarter, the prior from revenues and X.X% driven XXX translation, $XXX.X driven grew the $XXX.X points margins X.X% and impact favorable productivity the of and Solutions channel prices X.X% inventory year. impact Industrial in adjusting higher these of and had basis a translation on movements, or basis from prior-year million The of year, the EBITDA decreasing and

segment basis Solutions prior-year revenues translation quarter. EBITDA from Network growing the $XX.X of basis XX had $XXX.X favorable points Our generated million in points impact points million, the increased a Currency $X period. period in sequentially. margins prior-year from million basis of XX.X% of XX and the XXX

begin I'll sheet balance will slide highlights. to you turn our with If X,

flow in at million improvement reflects balance turns X.X repayment period. generation. is million increasing year-over-year. of in and sequential second net compared was the The mainly decrease turns, the the was and result second in equivalents $XXX quarter a of PP&E the levels. decreasing year-over-year. year-over-year prior-year turns, and cash turnover $XXX quarter quarter, and quarter an capital the the Working cash turns debt quarter turns decrease cash to inventory the from $XXX X.X from of was Our turns X.X X.X X.X turns second X.X completed million of end The third the increased

the estimate and be execute balance plan leverage pleased the and and at approximately the times million. quarter, end maturities of and beyond. to compared year. plenty turn with prior third to from capacity a at billion the quarter million powder line the We're XXXX from was quarter cost prior billion lowered our total from prior the extremely was of to EBITDA quarter, Our in second in expenditures X flow debt few were Please $XX.X operations and We've debt With to principal the $X.XX $XX.X significantly with billion the our $XX.X million in compared increasing Cash X.X quality third of X.X% Net cash $X.XX refinancing dry slide flow our XXXX. $XXX extended the of actions to the was quarter our and our capital debt third prior-year X.X% of upon Net to sheet. million period. highlights. to to in $XXX,XXX quarter our quarter we in for net end available year. $X.XX strategic the for

XXXX cash quarter generated third a to in from prior As the Year-to-date, million compared flow million. cash million result, operations we was $XX.X primarily to period. cash of flow to have the $XX.X cash year, prior-year impacting $XX.X free and levels. free free $XX.X flow inventory Compared lower, is million due factors our $XXX.X million in the flow three of

value inventory First, $XX our the by corporate of inflation approximately has increased million.

additional impact final footprint milestone of demand Secondly, $XX of holding anticipate And with for we're a million. period, safety of recent the quickly we holding temporary following hurricanes. an in our inventory to a approximate manufacturing customer we're as the finally, rebound consolidation, as higher we $X level stock million approach

manufacturing to we're in by capacity approximately In new increase and now to million, including a planning capital will expenditures initiatives India. in our $XX increase investment commitment growth addition,

we the expect $XXX cash result, a flow As XXXX. for free million full-year of

President, our pleased anticipate actions in repurchases. shareholders towards completed to dividends disciplined we $XXX acquisitions full-year actions this remarks. completes John $X.XX accretive XXXX. Chairman, on When Stroup, returned the call refinancing, capital and Year-to-date, we've prepared I EPS by million these are CEO would through like recent to to with share allocated to outlook. million be our back with John? to my for $XX now We a allocation combined basis. the and That turn and

John S. Stroup

and for Henk. you, our quarter regarding Please X outlook full-year the results. fourth slide XXXX turn Thank to

of are increasing consolidated third with results we low line end expectations, for our guidance. were EPS the the full-year our revenue and in Our quarter and

anticipate EBITDA million, quarterly EPS the XXXX in We We million between and opportunities. revenues, margins quarter and continue number $X.XX $X.XX. be of fourth to expect attractive to actively $XXX quarter. $XXX to pursue record fourth Further, and EPS revenues a we of inorganic

$X.XXX Details our further $X.XX. our billion. billion forward For relative to our to of $X.XXX December expect our $X.XXX Please business questions. XXXX between We to can That webcast to into full-year concludes prepared $X.XX during prior the X. the call the on and expect we between $X.XXX providing open guidance prior be remarks. compared full-year found and now to revenues look guidance $X.XX Investor of guidance investor.belden.com. to of and Day insights billion, billion $X.XX at XXXX, We EPS

Operator

Certainly.

with Your first Dilts Stifel. question from is Noelle

Noelle Christine Dilts

quarter. congratulations Good and guys. Thanks, morning, on a good

John S. Stroup

Thanks, Noelle.

Noelle Christine Dilts

first, dig more bit Industrial. So, to wanted I little into a just

You mentioned trending that an kind in been the within of but us well, and oil on the gas could pieces update what Industrial? some discrete you markets, has and also you're key give other seeing of

John S. Stroup

Yeah.

So, But of about organic I said, if oil in at growth up discrete piece it X%. from XX%. and in oil up about our if Industrial Solutions was total, saw was it look business, and you process, was about down exclude gas you slightly. And as process The XX%. gas

like more are about results If quite similar, you discrete Solutions, Network process X%, up not much up as include X%. the

to verticals those segments, those be strong. So, continue

prepared Industrial organic remarks up a XX% year-over-year also the in was about I that for think our Solutions rate mentioned basis. our order on we

of the order the to rate, think strong, be on of indicators will forward business based part that we Noelle. that run funnel leading continues And So, and continue.

Noelle Christine Dilts

a going Great. work quarters, you some transition helpful. impacting quarter. in as on of like us sounded kind maybe timing what's It over Broadcast, guess much this release. the you the of on there? of couple a about that of – talked bit Can IP That's thoughts wasn't past Last give some I concern

John S. Stroup

we with we've of at IP with have maybe I So, world. activity they've XX competitor similar projects. the a ahead. good than time one that's had installed just more I had around us, pace other was the to sort think And projects team, IP slightly Last really

it's the where amount see year-over-year our Valley business performed to up healthy that like again, The a business is mentioned is we feel the in quite we quarter. a in and that on business expected, international I doing and U.S. So, team we've well. Grass a quarter, is basis, second as continued the trend struggling, our and

the year is U.S. Some it this of from year Olympics. the think transition. cycle the and I that bigger to a normal four of presidential just might be election after IP one But piece

We continue sure to to be One need still some industry to they in cautious and the they IP they're understand of the to Broadcast. invest there's hear the customers confirm that be how technology, technology about in work capital. say done standards the

particularly to we we're confident So, the in we're to U.S. continuing But, Grass our as fight activity the within those of Noelle, Valley, share. competition, monitor continue take headwinds, we'll

Noelle Christine Dilts

I'll Great. one kind you India? else it growth be hop guys, Can back was from you're of maybe you'll what more queue. And And plant first then, hear some manufacturing in interesting manufacturing But, a including on and me give India. for you, to about in what at talk us thoughts this then, growth in more looking perspective? initiatives

John S. Stroup

Sure.

construct all fairly the a is investment Belden growth facility and happening making be in been right good years, view on India would in a the also this will products now. to to couple over bullish an what's last and we're So, say that that support I from India what's manufacture planning platforms. manufacturing And we're three will pretty facility four

making industrial sorts manufacturing multiple This we'll well the and switches, including routers, facility, all So, be and enterprise Network cable cable a we're connectivity, also in of Belden-wide connectivity. support as products; Solutions. to investing will platforms, engineering truly resources area in be and

capital strong pay had but dividends. it XXXX, planned XXXX start the positioned a excited in we going start were as originally it to in sooner. included we're And by We it's outlook. And result, to investment. to think So, we our we

Noelle Christine Dilts

you. Perfect. Thank

John S. Stroup

Welcome.

Operator

comes question Seaport Securities. next Global Matt McCall with your from And

Matt McCall

Thank you. Good morning, everybody.

John S. Stroup

Hi, Matt.

Hendrikus Derksen

morning. Good

Matt McCall

just John, that last continuing maybe, question. on So,

some expect dividends timeframe those commence? dividends? nice expected projected When benefit pay you we to on the to should some seeing what's So,

John S. Stroup

probably their on end taking just impact. don't government as growth significant of lot our without grow, going opportunity all reform XXXX. to to benefiting. front think progress them, nice as markets think, of seriously in a of And and are and It's in in And XXXX, the about a may benefit be I imagine, there's Well, more can India some Matt. in XXXX We manufacturing capacity. in make the my view, see India you economic seen we've really, I continues

different businesses. Enterprise which growth as we're beyond. Solutions is of for with variety Industrial it's our but But a but which good Network India and going manufacturing initiatives think, think that Our critical seeing as to business, XXXX positive in it's probably this especially I is, infrastructure, our to be, good is business more opportunities course, of year, say, well seeing I beneficial XXXX, to I'd also

Matt McCall

the Okay. we And a than little side, quarter. on better in the expected Industrial

cited issues You've labor in past, availability. labor the

and some also positive pricing expectations pricing you think had about comments I there.

some there follow-through Are I lack on from seeing a some I think the issues front were the labor pricing that and easing? response of you'd have, you competitor guess, are – competitors. better

John S. Stroup

clarify, just Matt, to correct? Enterprise. Is believe about So, that you're I talking

Matt McCall

sir. Yes,

John S. Stroup

Okay. Yeah.

So, in One couple we is, the did see changes in to of pricing. quarter, a it as some Matt, related market I'd the say things happened.

had, we've labor the markets, we had on the think attempted of our earlier than in being I It a see of with, of say, not prices occasions which the couple changed. have a environment great. it too challenges And the inventory those all went then, unsuccessful. quarter. earlier price some those really we we to be as with most which pricing of we in don't in I'm constraints, improved year, than case, compete the see relates third that costs higher in were just with a obviously an is that really increase we we, and the in we And did other quarter, did of I through turns be put others, benefit higher would major why But We our increase so of see we to could bit any welcomed. movement very were sooner the was little year. much course, struggling well in pricing, people sure So, may hindsight, early.

what's with contractors connectivity to is growth a has I predominantly think that than around lot and centers. I growth. lot and our of a propelling our do data is think think performing extended XA CAT the which And initiatives, again, commercial our growth our better around I LAN,

yet that's centers, those haven't so enterprise what saw see than is know we that But to So, results, we look competitors LAN are us, go major are certainly, what about that or going business, yet their seen I that's focused my more data the really probably don't to better on quarter. talk of going guess and like. our in

Matt McCall

Okay. helpful. That's

So, you've things that like I'm inflection growth an positive of what's just many looks our and with the outlook from two-year maybe quarters last at just business? had things some way had here. but kind guess hurricanes, but growth on of the (XX:XX), pricing segments, you've about I organic of year-over-year I outlook. it some there your look Is or in at least But the pressure downside? areas any in curious expectations of is, I'm out improving then, looking I the the think and Broadband the or deltas highlights the one that in in the any upside the and a organic in to that driving were like stack. that business original quarter, quarter, some QX some best called for looking surprised know you Enterprise shape up I'm the I other at it guide, And just there then the seems it, mean,

John S. Stroup

Sure.

that as say we third did the would they expected. obviously, better the businesses, to not if within than we would strengthen Industrial within and well, I I our as say had So, expected had quarter, Broadband than little our business better prepared quarter, in we we than our the did better a do Enterprise expected. in mentioned And business it our thought quarter. would did we remarks, maybe

from was we the hurricane, the into impact not usage that but of have That's, about we the science, an do think we of mentioned; customer. Some as visibility $X a hurricane. exact at our course, million

We have daily VMI.

pretty it we think well. estimated we So,

quarter, Industrial come the into growth. year our That's year continued improvement in And Solutions the as Broadband we back I at would of quarter also, compared we've third on quarter, on order October. a will expecting Going some the to strong organic year-over-year Solutions, over growth, going look that basis. say rates then fourth in a strong and Network to we're already have expecting you seen business within strength are

seen Broadband it quarter. next about we're line right feel optimistic will to do would say the we in how year, it perform and with somewhat Enterprise I we in did So, the business how our about from business how optimistic would we've finish, expect third now, they'll what

businesses are generally the mentioned. say doing couple that a I'd we well short-term So, of with challenges

Matt McCall

Okay. Thank you, John.

John S. Stroup

welcome. You're

Operator

from question And your is JPMorgan. Kesireddy Ashwin with next

Ashwin X. Kesireddy

in about Thanks for I to segment, share Hi. taking Yeah. us you wanted the please? question. that ask my on update Tripwire. Can progress market

John S. Stroup

Yeah.

So, its our has which us. primary area Tripwire Enterprise focus business within been for of core a market, did well

we a the for growth So, in quarter it's very tends the in was had on the which strongest on then, around the third be saw segment. third we within a – most within we space, also, their Where Enterprise federal year the end. And the to was basis year-over-year utilities. however, segment on down a comp the Industrial quarter challenges, fed basis a the difficult year-over-year year-over-year basis, saw some quarter and as

about good really of focus the made which progress segment, we've Enterprise in for area feel I been So, the an us. has

in the results probably on that's think moving fourth. seen fed, share Tripwire the at share into we took flat quarter, I slightly project third yet the our competition's would I in but But that's was in think so the third close where we is, maybe to weakness We thought now or timing. expect mainly quarter that the Enterprise we market our had I might kind positive. saw a And say segment in whether can't market of haven't Enterprise specifically based I growth We in not.

on a segment. the like their So, lot progress the core the products progress Enterprise good forecast, fourth their feels about good I feels about And good they made made we've quarter side. of in team feel sequentially

business like. as in where as Certainly, not about results is. maybe So, the lot a would feel that I better evident

Ashwin X. Kesireddy

I And to you the you. Thank strongest it's have of about one probably guidance. ask the want QX Seasonally, seen.

you think of will which segments, expect this growth sequential see than drive in or If do about are you where to segments all Thinklogical driven it seasonal better upside? various most Is there the QX? by

John S. Stroup

that's the to going Broadcast. grow So, most probably is segment sequentially, the

grow first all, a somewhat, to result of Broadband first tends the of weakness business Valley do Grass initiatives expecting some sequentially our maybe and than the predominantly weather the our also And fourth a So, in have that to have quarter is stronger we're as nicely going business then, three. they of been third customer quarter the consolidation around other the happening. that

the Industrial probably followed businesses our Tripwire by stronger have than fourth that's both Network Solutions, So, strongest. quarters and typically our probably third. And IT then,

I sequentially And going then, up and points. flat high-single-digit to our to our have Enterprise both platforms So, low-double-digit growth to growth. are few those sequentially Industrial would business a would expect maybe business be

Ashwin X. Kesireddy

a Got lot. Thanks it.

John S. Stroup

welcome. You're

Operator

comes Bank. question with Scribner Deutsche from next your Sherri And

Jeffrey Rand

for your Rand can business In the Jeff what Broadband, a quarter? saw trends is about during This and talk Hi. PPC little Sherri. you you

John S. Stroup

Yeah.

PPC when refer Broadband, referring also brand. our we're we So, to to

equivalent. same the business. So, it's It's

the was a again. started in the moving as landed. the even then, priorities other areas it saw were areas big you really But, as on the back country, bringing hurricanes weakness impacted in business had in were And wasn't that the had it or the good the to network technicians area impacted affected So, country of off in areas away and quarter Obviously, where switching the to hurricanes. by new of was just from impacted, bringing up people of country. the their customers, the pretty

the orders are in September, saw XX% weaker as what Broadband seen in mistaken, mentioned, month I'm If our month-to-date we the But, PPC a the entering had So, it year-over-year. not up quarter. we've much weak than orders was a thought business very October. team basis, or of on I

Jeffrey Rand

Great. compare earnings to Thank it your And can on your ago it days how M&A call? you. pipeline, looked XX about on you last

John S. Stroup

fallen elected a opportunities to come opportunities out, not have of I'd a say we've pursue, of couple there's that in. similar. and that that There's couple have

days where So, it ago. I very to say would XX similar was

Jeffrey Rand

Great. Thank you.

Operator

And your from Longbow question comes Research. Harrison Shawn with next

Unknown Speaker

Shawn. Hey. (XX:XX) calling Good morning. in Chris This for is

do Just M&A? had flow plan a How forward? to flow cash talk to going question. I back you more in be dynamic. clarify you shares cash that. or can use then wanted in That'd free If buying to

John S. Stroup

So, we do priorities around a how but I the deploy I had think with had that flow free you, it, is and hearing question hard cash correct? time to

Unknown Speaker

Yes.

John S. Stroup

Okay.

Unknown Speaker

Yeah.

future. Just the looking into

John S. Stroup

Yeah.

somewhere suggest So, really that always, of think – be expect our is there sheet times emphasis I to fact first in organic priority our if I would And no that there's or XX% would repurchases, plan. has slightly a in on investments. organic our in used permit around with then, then, like been investments the capital everybody what plans product our the it. change organic fund been year than plan remainder And shared where or have our a and so. has a priority be we our bolt-ons $XX to strategy. XX% for can't balance But India, be allocated to today, been might towards cases, have debt, the tends construct million platforms. in where Henk will making investments higher We example it some share retiring a with course, in existing either general, historically, we're for initiatives other in and M&A, And to facility for

say years, I the that would to allocation I expect over So, would next be similar. three

Unknown Speaker

guys in I more think the in of talk networking little little solutions in you. follow-up. earlier color you Thank of and this kind shortfall just grew and about perform of that And some (XX:XX)? you on, (sic) terms we a I branch sequentially. a know fourth course, peers We you [indiscernible] your of heard bit Solutions] how with you just Could Okay. give saw you weakness, [Network guess, a will the business.

John S. Stroup

question around Enterprise? Was Sure. your

Unknown Speaker

Specifically, the Network Solutions business.

John S. Stroup

Okay.

nice it the to would quarter, from I in growth thought. we yeah, Solutions it would was, weaker stronger than expecting not say, pretty we as we what to business, I thought Network going fourth had much business. So are Network Solutions was or say It third our was be.

the well businesses to project-related I expect I forecast. the both of business. both strength tend be construct digits. mentioned as in or of piece earlier, As and And to high-single Tripwire strength of Industrial I would And our core our IT business think, the at as funnel look opportunities we those therefore,

Hendrikus Derksen

(XX:XX)? Chris

Unknown Speaker

Thank you. all. That's

John S. Stroup

Okay.

Hendrikus Derksen

you. Thank Okay.

Operator

question your next from Guggenheim. Cihra And comes Rob with

Robert Cihra

is me very you I do can of But, you I mean, Two, Thank nicely. there sort reacceleration think automation, thing, almost the of driving macro, Industrial? in just, which that think you macro? an a if by give know of the new is has thing just talked could. of kind been of on that manufacturers your spending you more like One, much. sort I it in Industrial that sort bit sort technologies metrics and that you business, reacceleration Great. are idea or already reaccelerating IoT, that of cyclical there,

John S. Stroup

we're both. broad-based mean, I it's I growth. seeing think

we're the other to business our within seeing intelligent seeing piece business, from strong the just importantly certainly three tends our connectivity segments. but in discrete, usually which not growth of So, more than grow grow very faster and benefit discrete consistently automation, And we're automation.

sensors to very I/O on that PLCs or actuators and go that So, nicely. the (XX:XX) connect connectors boxes is growing sensors

automation age And to low think especially good now, well. what going seeing as was as strong resonates. of process be. we're you beginning exactly And cost shortages, result of we equipment, So, thought we're discrete. I why growth to in I mean, it's that's to pretty at manufacturing talk in think the in see capital. look the customers, we investment When I growth, a labor it that of

are businesses really Industrial set our up very So, nicely.

Robert Cihra

this Analyst all able XXXX, looking see mean, But be to looking growth at then, is save wouldn't may your that I something your you're be think you're segments? business Great. to to for reason if there probably any Thanks. you And Day. is of in

John S. Stroup

Well, would things would obviously business. We'll on I shape. to healthier headwind more had biggest don't we want this macro meeting been good year. December. year. general far I anticipation certainly would year have that that all this we've And in are businesses remove if be specific than But basis, lot next would the in at the about I you trends, get our a year look were a secular trends Broadband any they in next the has macro comment But for say to expect

Robert Cihra

very you Thank Great. much.

John S. Stroup

Thank welcome. you. You're

Operator

Chip Moore And your next is Canaccord. from with question

Chip Moore

Good Thanks. morning.

Thinklogical, in I of full look? you on touched more can an what now give targets them. with us you're Maybe think seeing you've that little been we the how accretion a quarter most update deeply, a of maybe it

John S. Stroup

Yeah.

business, said a one Obviously, the quarter the in business – remarks, said thought the Henk we quarter would. prepared as my as performed in that's it in maybe I row. it exactly So,

total But business. victory. we the of our project were be declare So, projects business, visibility percentage we're going not can the is the When timing we had a by predicting But acquired they a it's on. a little way, a not good revenue, where company, into it's a to It as working challenging. lot.

technology is team something strong. is real. so if not a good. on or competitive from another, overall margins The results. The impact are moves good. But the advantage quarter have to So, are slips The good. The far, going is it's one huge or projects in, Belden's consolidated

right they be. and expected we where financially, them be, a we to they they submitted where And was I quarter fourth so, thought think on would forecast that were for right

good. So, so so far,

Chip Moore

Thanks. just or maybe cost taken capital And there your then, December. return powder, another back given then do more, quite here, on how rate for be you strategically? does nicely But, of think dry Okay. one one to that that about might and of sort thinking change your you've down that hurdles,

John S. Stroup

Yeah.

we fact been obviously, as certainly company. XX% able our a considered to almost yeah, WACC, our as that XX% off asset, that we've And but when ROIC ruin XX% come and we we guarantee the our XX% lower to we ROIC. And we'll reaffirm depending fold XX% want attractiveness So, haven't love getting although certainly, the in there no to you range. I I acquisitions XX% to that we're didn't to company, of change December. can to around XX% in it just December, on time we in always Obviously, suspension together respect. the path asset, to XX% clear a ROIC said the I acquisition takes have for the would continue But that be that size into the get is within have the to we've to something flexible of of goal

Chip Moore

forward Look it. Great. Thanks. to

Hendrikus Derksen

Thanks.

Operator

CLK Brokers And your Godfrey next with George is from question

George J. Godfrey

you Thank morning. good for and you question. Thank my taking

to growth Just wanted ask about rate. the organic

If the I'm for does go your organic that we to rate what of for you missed $XXX growth quarter sorry, it. the I midpoint If fourth million, this, guidance, year? gave full imply the

John S. Stroup

on down bps. full XX end be bps, maybe basis, the on would year about a XX end So, would and be the at organic growth high low the just

with would growth, we've flat roughly the midpoint, full-year organic given at year-over-year. just you, the be guidance So,

George J. Godfrey

something how look on year then, for you And you growth or for probably challenging, think Do about as difficulty the the Day. easier, the Investor to the growth next organic the for taking more again, you XXXX? out same, Thank it. rate a the question. is we of think level organic Got do

John S. Stroup

Yeah.

XXXX, tougher to not XXXX organic the So, had which both challenges albeit business is I because relatively expect, Broadband and with growth think business compared in we our predominantly we that was we it we than our XXXX in did to be going of thought. Valley easier expected, Grass

So, I see I expect expect Grass I to improve we our to XXXX, be improved, headwind well. business, at businesses, continue PPC in Industrial as tailwind to would would the would to I continue Broadband our Tripwire would and in conditions expect Valley would entering to expect business the subside

from think we entered XXXX I So, perspective better in than a enter we spot a XXXX. growth

George J. Godfrey

for Got question. you Thank it. taking the

John S. Stroup

welcome. You're

Operator

further no time. this are at there questions And

Kevin Maczka

everyone, on Day and join call. thank Investor again you, X you'll for for Matt, you, Thank joining webcast. December We our today's hope us Okay.

any have questions, Belden. here you at reach If out please IR the to team

Thank investor.relations@belden.com. great you. is Our a day. Have e-mail address

Operator

your this and today. call Thank you. Ladies gentlemen, for concludes

from your now the and you may disconnect call for participating. thank You

Belden (BDC) 1 Nov 172017 Q3 Earnings call transcript