Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Belden Lowers Q4, FY Outlook After Completion Of Thermax-Raydex Sale

RELATED NEWS
Trade BDC now with 

Network equipment maker Belden Inc. (BDC: Quote), 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.

Register
To receive FREE breaking news email alerts for Belden Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
European stocks are seen opening lower on Monday, tracking weak commodity prices and a subdued trend across the Asia-Pacific region as investors look ahead to Chinese manufacturing data due on Tuesday for important clues about China's growth outlook. China is experiencing stable growth and there... Specialty drugmaker Horizon Pharma plc (HZNP) on Friday managed to redomicile itself as an entity incorporated in Ireland following the completion of its $660 million acquisition of Vidara Therapeutics International plc. The deal will help it avoid paying the high rate of U.S. corporate taxes. The... Stocks showed a lack of direction over the course of the trading day on Friday after failing to sustain an initial upward move. Despite the choppy trading, the Dow once again managed to end the session at a new record closing high. The major averages turned in a mixed performance on the day.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.