EX-99.1 2 c12142exv99w1.txt NEWS RELEASE (BELDEN LOGO) 7701 Forsyth Boulevard PHONE: 314.854.8000 SENDING ALL THE RIGHT SIGNALS Suite 800 Fax: 314.854.8003 St. Louis, Missouri 63105 www.Belden.com News Release EXHIBIT 99.1 FROM: BELDEN DEE JOHNSON 314.854.8054 FOR IMMEDIATE RELEASE -- FEBRUARY 8, 2007 BELDEN ANNOUNCES FOURTH QUARTER 2006 RESULTS Fourth-quarter adjusted earnings per diluted share were $0.46. Execution of strategic plan positions Belden for profitable growth. St. Louis, Missouri -- Belden (NYSE:BDC) today announced that revenue for the fourth quarter ended December 31, 2006, was $378.8 million and operating income was $19.1 million. Income from continuing operations was $10.7 million, or $0.22 per diluted share. The quarterly revenue increase of 14.3 percent from the prior-year fourth quarter revenue included 2.3 percent favorable currency translation. During the quarter, Belden recorded $18.5 million pretax in severance, asset impairment, and adjusted depreciation charges associated with restructuring activities in North America and Europe, net of a gain on the sale of tangible assets of $1.3 million. In the fourth quarter of 2005, the Company incurred pretax charges of $10.1 million for severance, merger integration, asset impairment and executive succession and a one-time tax benefit of $3.3 million. Adjusted for these items, operating income increased 27.0 percent year over year to $37.6 million in the fourth quarter 2006. As a percent of revenue, adjusted operating income was 9.9 percent in the fourth quarter of 2006, compared with 8.9 percent in the fourth quarter of 2005. Adjusted diluted income per share from continuing operations was $0.46 in the fourth quarter of 2006, a 48.4 percent increase from $0.31 in the fourth quarter of 2005. See the attached schedule, Adjusted Operating Results, for a reconciliation of GAAP results to adjusted results. FULL-YEAR RESULTS Revenue of $1.496 billion in the year ended December 31, 2006, was 20.1 percent higher compared with $1.246 billion in 2005, including a favorable currency impact of $15.2 million, or 1.2 percent. Operating income in 2006 was $118.5 million, and income from continuing operations was $71.6 million, or $1.48 per diluted share, compared with 2005 operating income of $68.5 million and income from continuing operations of $33.6 million or $0.69 diluted share (GAAP). MANAGEMENT COMMENT "We are very pleased with our 2006 results. On an adjusted basis, full-year operating income margin improved by more than 200 basis points and earnings per diluted share improved 74 percent, from $1.08 to $1.88," said John Stroup, President and Chief Executive Officer of Belden. "We made solid progress with the execution of our strategic plan. Our product portfolio management initiative has already generated improved gross margins, even though the results of our regional manufacturing initiatives are yet to come. Strong organic growth in connectivity, fiber and industrial products has more than offset the decline from deliberate actions taken to address underperforming product categories. And in the fourth quarter, we achieved inventory reduction of $49.5 million and continued to make progress in our manufacturing restructuring." ITEMS OF NOTE Items of special note for the quarter include the following: - Belden purchased the minority interest in its German subsidiary HEW Kabel for $6.8 million. - On December 6, the Company announced further restructuring actions in North America, including the planned cessation of manufacturing operations at its Pointe Claire, Quebec, and Wheeling, Illinois, facilities and other work force reductions. ACQUISITIONS ANNOUNCED On January 30, 2007, Belden announced an agreement to acquire Hirschmann Automation and Control (HAC), based in Germany, for approximately $260 million cash. HAC's products include industrial connectors and Industrial Ethernet switches. On February 7, 2007, Belden announced an agreement to acquire LTK Wiring Co. Ltd. for approximately $195 million cash. LTK Wiring is a leading China electronic cable manufacturer based in Hong Kong. "These two acquisitions, Hirschmann Automation and Control and LTK Wiring, are precisely within our strategic scope and significantly improve our ability to grow. In the case of HAC, the growth opportunity comes from the combination of industrial cable, connectors and switches. And in the case of LTK Wiring, we are significantly increasing our position in faster growing, emerging markets while adding high-quality regional manufacturing plants." OUTLOOK "The progress made in 2006 with many of our strategic initiatives, including product portfolio management and regional manufacturing, along with our recently announced acquisitions, position us to profitably grow our revenue 5 to 7 percent over the mid-term," Mr. Stroup said. "Including the additional revenue from the two pending acquisitions, our outlook for 2007 consolidated revenue is $1.9 to $2.0 billion. We expect earnings per diluted share to be between $2.40 and $2.65 for the year, excluding any future charges for severance and asset impairment that may result from the actions already announced." Belden has adopted the practice of giving only annual guidance. FORWARD-LOOKING STATEMENTS Statements in this release, including those under "Outlook," other than historical facts are "forward-looking statements" made in reliance upon the safe harbor of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on forecasts and projections about the industries served by the Company and about general economic conditions. They reflect management's beliefs and expectations. They are not guarantees of future performance and they involve risk and uncertainty. The Company's actual results may differ materially from these expectations. Some of the factors that may cause actual results to differ from the Company's expectations include demand for the Company's products; the cost and availability of materials including copper, plastic compounds derived from fossil fuels, and other Page 2 materials; energy costs; the Company's ability to close the acquisition agreements as planned, and to successfully integrate the acquired businesses; the degree to which the Company will be able to manage successfully in an environment of volatile material costs; the Company's ability to implement its announced restructuring plans; the Company's ability to rationalize production as it reduces working capital; 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, 2005, filed with the SEC on March 16, 2006. Belden disclaims any duty to update any forward-looking statements as a result of new information, future developments, or otherwise, or to continue the practice of providing earnings guidance such as that found under the above heading "Outlook." ABOUT BELDEN Belden is a leader in the design, manufacture, and marketing of signal transmission products for data networking and a wide range of specialty electronics markets including entertainment, industrial, security and aerospace applications. To obtain additional information contact Investor Relations at 314-854-8054, or visit our website at www.belden.com. Contact: Belden Dee Johnson, Director of Investor Relations 314-854-8054 The following schedules are provided: - comparative condensed consolidated statements of operations for the three- and twelve-month periods ended December 31, 2006, and December 31, 2005. - segment results for the same periods. - condensed consolidated balance sheets as of December 31, 2006, and December 31, 2005. - a supplemental schedule of adjusted consolidated results for the quarter and year, excluding charges for severance, asset impairment, adjusted depreciation, executive succession, merger-related costs, and nonrecurring tax benefits. Page 3 BELDEN CDT INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, --------------------- ------------------------ 2006 2005 2006 2005 --------- --------- ----------- ---------- (IN THOUSANDS, EXCEPT PER SHARE DATA) Revenues $ 378,757 $ 331,483 $ 1,495,811 $1,245,669 Cost of sales (300,409) (263,173) (1,162,498) (968,296) --------- --------- ----------- ---------- Gross profit 78,348 68,310 333,313 277,373 Selling, general and administrative expenses (53,050) (51,800) (203,756) (203,825) Asset impairment (6,196) -- (11,079) (8,010) Minimum requirements contract income -- 3,000 -- 3,000 --------- --------- ----------- ---------- Operating income 19,102 19,510 118,478 68,538 Interest expense (2,547) (3,750) (13,096) (15,036) Interest income 2,471 1,296 7,081 4,737 Minority interest 364 (148) (187) (699) --------- --------- ----------- ---------- Income from continuing operations before taxes 19,390 16,908 112,276 57,540 Income tax expense (8,677) (8,698) (40,713) (23,972) --------- --------- ----------- ---------- Income from continuing operations 10,713 8,210 71,563 33,568 Gain (loss) from discontinued operations, net of tax -- 1,475 (1,330) (1,173) Gain (loss) on disposal of discontinued operations, net of tax -- -- (4,298) 15,163 --------- --------- ----------- ---------- Net income $ 10,713 $ 9,685 $ 65,935 $ 47,558 ========= ========= =========== ========== Weighted average number of common shares and equivalents: Basic 44,067 43,271 43,319 45,655 Diluted 51,125 49,763 50,276 52,122 Basic income (loss) per share: Continuing operations $ 0.24 $ 0.19 $ 1.65 $ 0.74 Discontinued operations -- 0.03 (0.03) (0.03) Disposal of discontinued operations -- -- (0.10) 0.33 --------- --------- ----------- ---------- Net income $ 0.24 $ 0.22 $ 1.52 $ 1.04 ========= ========= =========== ========== Diluted income (loss) per share: Continuing operations $ 0.22 $ 0.18 $ 1.48 $ 0.69 Discontinued operations -- 0.03 (0.03) $ (0.02) Disposal of discontinued operations -- -- (0.08) $ 0.29 --------- --------- ----------- ---------- Net income $ 0.22 $ 0.21 $ 1.37 $ 0.96 ========= ========= =========== ========== Dividends declared per share $ 0.05 $ 0.05 $ 0.20 $ 0.20

Page 4 BELDEN CDT INC. SEGMENT INFORMATION (Unaudited) (in thousands)

EXTERNAL OPERATING CUSTOMER AFFILIATE TOTAL INCOME REVENUES REVENUES REVENUES (LOSS) ---------- --------- ---------- --------- (IN THOUSANDS) THREE MONTHS ENDED DECEMBER 31, 2006 Belden Americas $ 204,641 $ 14,863 $ 219,504 $ 18,106 Specialty Products 60,862 8,269 69,131 6,430 Europe 95,997 2,031 98,028 4,973 Asia Pacific 17,257 -- 17,257 2,484 ---------- --------- ---------- -------- Total Segments 378,757 25,163 403,920 31,993 Finance and Administration -- -- -- (8,091) Eliminations -- (25,163) (25,163) (4,800) ---------- --------- ---------- -------- Total Continuing Operations $ 378,757 $ -- $ 378,757 $ 19,102 ========== ========= ========== ======== THREE MONTHS ENDED DECEMBER 31, 2005 Belden Americas $ 173,103 $ 15,621 $ 188,724 $ 29,916 Specialty Products 64,670 5,781 70,451 6,046 Europe 80,041 2,626 82,667 (8,050) Asia Pacific 13,669 -- 13,669 1,072 ---------- --------- ---------- -------- Total Segments 331,483 24,028 355,511 28,984 Finance and Administration -- -- -- (5,009) Eliminations -- (24,028) (24,028) (4,465) ---------- --------- ---------- -------- Total Continuing Operations $ 331,483 $ -- $ 331,483 $ 19,510 ========== ========= ========== ======== TWELVE MONTHS ENDED DECEMBER 31, 2006 Belden Americas $ 805,029 $ 63,684 $ 868,713 $122,213 Specialty Products 261,406 31,009 292,415 34,576 Europe 365,079 8,658 373,737 4,072 Asia Pacific 64,297 -- 64,297 6,803 ---------- --------- ---------- -------- Total Segments 1,495,811 103,351 1,599,162 167,664 Finance and Administration -- -- -- (29,219) Eliminations -- (103,351) (103,351) (19,967) ---------- --------- ---------- -------- Total Continuing Operations $1,495,811 $ -- $1,495,811 $118,478 ========== ========= ========== ======== TWELVE MONTHS ENDED DECEMBER 31, 2005 Belden Americas $ 627,136 $ 73,526 $ 700,662 $ 96,292 Specialty Products 244,067 18,813 262,880 26,598 Europe 324,258 8,993 333,251 (8,542) Asia Pacific 50,208 -- 50,208 2,838 ---------- --------- ---------- -------- Total Segments 1,245,669 101,332 1,347,001 117,186 Finance and Administration -- -- -- (30,717) Eliminations -- (101,332) (101,332) (17,931) ---------- --------- ---------- -------- Total Continuing Operations $1,245,669 $ -- $1,245,669 $ 68,538 ========== ========= ========== ========

Page 5 BELDEN CDT INC. CONDENSED CONSOLIDATED BALANCE SHEETS

DECEMBER 31, ------------------------- 2006 2005 ------------ ---------- (UNAUDITED) (IN THOUSANDS) ASSETS Current assets: Cash and cash equivalents $ 254,151 $ 134,638 Receivables 217,908 195,018 Inventories 202,248 245,481 Deferred income taxes 34,664 27,845 Other current assets 10,465 8,015 Current assets of discontinued operations -- 56,997 ---------- ---------- Total current assets 719,436 667,994 Property, plant and equipment, less accumulated depreciation 272,285 287,778 Goodwill, less accumulated amortization 275,134 272,290 Other intangibles, less accumulated amortization 70,964 72,459 Other long-lived assets 18,149 6,214 ---------- ---------- $1,355,968 $1,306,735 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 200,008 $ 216,736 Current maturities of long-term debt 62,000 59,000 Current liabilities of discontinued operations -- 13,342 ---------- ---------- Total current liabilities 262,008 289,078 Long-term debt 110,000 172,051 Postretirement benefits other than pensions 43,397 33,167 Deferred income taxes 71,399 73,851 Other long-term liabilities 25,263 17,166 Minority interest -- 7,914 Stockholders' equity: Preferred stock -- -- Common stock 503 503 Additional paid-in capital 591,416 540,430 Retained earnings 348,069 290,870 Accumulated other comprehensive income (loss) 15,013 (6,881) Unearned deferred compensation -- (336) Treasury stock (111,100) (111,078) ---------- ---------- Total stockholders' equity 843,901 713,508 ---------- ---------- $1,355,968 $1,306,735 ========== ==========

Page 6 BELDEN CDT 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 severance charges, adjusted depreciation, asset impairment, executive succession charges, merger-related costs, lease breakage costs, certain gains or losses recognized on the disposal of tangible assets, and tax reserve adjustments related to resolution of certain prior period tax contingencies. We utilize the adjusted results to review our ongoing operations without the effect of restructuring and related charges and for comparison to budgeted operating results. We believe these adjusted results are useful to investors because they help them compare our results to previous periods and provide insights into underlying trends in the business. Adjusted results should be considered only in conjunction with results reported according to accounting principles generally accepted in the United States.

AS REPORTED ADJUSTMENTS ADJUSTED -------- ----------- -------- (In thousands, except percentages and per share amounts) THREE MONTHS ENDED DECEMBER 31, 2006 Revenues $378,757 $ -- $378,757 Gross profit $ 78,348 $11,351 $ 89,699 as a percent of revenues 20.7% 23.7% Operating income $ 19,102 $18,519 $ 37,621 as a percent of revenues 5.0% 9.9% Income from continuing operations $ 10,713 $12,203 $ 22,916 as a percent of revenues 2.8% 6.1% Income from continuing operations per diluted share $ 0.22 $ 0.24 $ 0.46 THREE MONTHS ENDED DECEMBER 31, 2005 Revenues $331,483 $ -- $331,483 Gross profit $ 68,310 $ 8,733 $ 77,043 as a percent of revenues 20.6% 23.2% Operating income $ 19,510 $10,102 $ 29,612 as a percent of revenues 5.9% 8.9% Income from continuing operations $ 8,210 $ 6,536 $ 14,746 as a percent of revenues 2.5% 4.4% Income from continuing operations per diluted share $ 0.18 $ 0.13 $ 0.31

Adjustments for the three months ended December 31, 2006 included after-tax charges for severance, asset impairment, adjusted depreciation, and lease breakage of $9.0 million, $4.0 million, $0.4 million and $0.1 million, respectively, and an after-tax gain on the disposal of tangible assets of $1.3 million. Adjustments for the three months ended December 31, 2005 included after-tax charges for severance, adjusted depreciation, merger integration, and executive succession of $8.2 million, $0.7 million, $0.6 million, and $0.3 million, respectively, and a one-time tax benefit of $3.3 million. Page 7 BELDEN CDT INC. ADJUSTED OPERATING RESULTS (Unaudited)

AS REPORTED ADJUSTMENTS ADJUSTED ---------- ----------- ---------- (In thousands, except percentages and per share amounts) TWELVE MONTHS ENDED DECEMBER 31, 2006 Revenues $1,495,811 $ -- $1,495,811 Gross profit $ 333,313 $19,418 $ 352,731 as a percent of revenues 22.3% 23.6% Operating income $ 118,478 $32,912 $ 151,390 as a percent of revenues 7.9% 10.1% Income from continuing operations $ 71,563 $19,997 $ 91,560 as a percent of revenues 4.8% 6.1% Income from continuing operations per diluted share $ 1.48 $ 0.40 $ 1.88 TWELVE MONTHS ENDED DECEMBER 31, 2005 Revenues $1,245,669 $ -- $1,245,669 Gross profit $ 277,373 $ 9,433 $ 286,806 as a percent of revenues 22.3% 23.0% Operating income $ 68,538 $28,342 $ 96,880 as a percent of revenues 5.5% 7.8% Income from continuing operations $ 33,568 $19,765 $ 53,333 as a percent of revenues 2.7% 4.3% Income from continuing operations per diluted share $ 0.69 $ 0.39 $ 1.08

Adjustments for the twelve months ended December 31, 2006 included after-tax charges for severance, asset impairment, adjusted depreciation, and lease breakage totaling $16.9 million, $7.5 million, $1.5 million, and $0.1 million, respectively, a one-time tax benefit of $4.7 million, and an after-tax gain on the disposal of tangible assets of $1.3 million. Adjustments for the twelve months ended December 31, 2005 included after-tax charges for severance, asset impairment, executive succession, merger integration, and adjusted depreciation totaling $8.8 million, $7.7 million, $4.3 million, $2.4 million, and $0.7 million, respectively, and a one-time tax benefit of $4.1 million. Page 8