Network equipment maker Belden Inc. (BDC), Monday lowered its financial outlook for the fourth quarter and the full year 2012, citing the exclusion of divested business-- Thermax and Raydex from the results as discontinued operations.
St. Louis, Missouri-based Belden revealed that it completed the sale of Thermax and Raydex businesses, announced last month, to Carlisle Companies Inc. (CSL) for about $265 million.
Thermax-Raydex generated annual sales of about $112 million and has manufacturing facilities in Nogales, Mexico, Littleborough, UK and Fountain Valley, California. Thermax-Raydex supplies of high-performance hook-up, data and coaxial wire and cable for mission-critical applications for commercial aerospace, defense and industrial customers.
The company's earlier fourth-quarter guidance included about $30 million revenues and earnings of $0.10 per share from Thermax and Raydex businesses. However, according to generally accepted accounting principles, the results of divested business has to be classified as discontinued operations.
As a result of the GAAP classification, the company now expects fourth-quarter adjusted earnings from continuing operations of $0.62 to $0.67 per share on revenues of $470 to $480 million.
Analysts polled by Thomson Reuters currently expect earnings of $0.75 per share on revenues of $505.11 million for the quarter. Analysts' estimates typically exclude special items.
Previously, the company expected adjusted earnings of $0.72 to $0.77 per share on revenues of $500 million to $510 million in the fourth quarter.
For the full year 2012, the company now expects adjusted earnings from continuing operations of $2.63 to $2.68 per share, on revenues of $1.834 billion to $1.844 billion.
Analysts currently expects earnings of $3.03 per share on revenues of $1.95 billion for the year.
Previously, Belden anticipated adjusted earnings of $3.00 to $3.05 per share on revenues of $1.94 billion to $1.95 billion for the year.
Belden Chief Executive and President John Stroup said, "I'm pleased to announce the closure of this sale and look forward to the continuing transformation taking place here at Belden. We have already identified attractive opportunities for these proceeds in both the acquisition of PPC and the ongoing repurchase of Belden stock."
Last week, Belden had said it acquired privately-held PPC, a New York-based provider of broadband connectivity solutions, for $515.7 million. The company had then confirmed its fourth-quarter and full year 2012 guidance.
BDC closed Monday's trading at $42.44, up $0.41 or 0.98%, on the NYSE The stock lost $0.25 or 0.59% in after-hours trading.
by RTT Staff Writer
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