ST. LOUIS--(BUSINESS WIRE)--Belden Inc. (NYSE: BDC), a global leader in signal transmission solutions for mission-critical applications, today announced it has reached an agreement in principle to sell its Mobile Machine Control Solutions (“MCS”) business, including a 50% interest in a Chinese joint venture. Both serve the mobile working machines industry. The buyer, WIKA Group, an international market leader in industrial measurement technology, will pay consideration of approximately $39 million, subject to customary post-closing adjustments. The transaction is subject to customary closing conditions, including regulatory clearance, and is expected to close in the second fiscal quarter.
The MCS business is a part of our Industrial Connectivity platform, and the joint venture is an equity method investment within our consolidated results. This divestiture is expected to have an impact to the 2017 guidance provided at the Company’s Investor and Analyst Day event on December 5, 2016. For the fiscal year 2017, the divestiture of the MCS business is expected to reduce revenues and EPS by approximately $27 million and $0.05, respectively.
The Company now expects full-year 2017 GAAP and adjusted revenues to be $2.355 - $2.405 billion and GAAP EPS to be $3.38 - $3.63. On an adjusted basis, EPS is expected to be in the range of $4.95 - $5.20.
Earnings per Share (EPS)
All references to EPS within this
earnings release refer to income from continuing operations per diluted
share attributable to Belden common stockholders.
Use of Non-GAAP Financial Information
Adjusted results are
non-GAAP measures that reflect certain adjustments the Company makes to
provide insight into operating results. A GAAP to non-GAAP
reconciliation accompanies this release and has been published to the
investor relations section of the Company’s Web site at http://investor.belden.com.
| BELDEN INC. | |||
| RECONCILIATION OF NON-GAAP MEASURES | |||
| 2017 EARNINGS GUIDANCE | |||
| Year Ended | |||
| December 31, 2017 | |||
| Adjusted income per diluted share attributable to Belden common stockholders | $4.95 - $5.20 | ||
| Amortization of intangible assets | ($1.31) | ||
| Severance, restructuring, and acquisition integration costs | ($0.26) | ||
| GAAP income per diluted share attributable to Belden common stockholders | $3.38 - $3.63 | ||
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Our guidance for income per diluted share attributable to Belden common stockholders is based upon information currently available regarding events and conditions that will impact our future operating results. In particular, our results are subject to the factors listed under “Forward-Looking Statements” in this presentation. In addition, our actual results are likely to be impacted by other additional events for which information is not available, such as asset impairments, purchase accounting effects related to acquisitions, severance, restructuring, and acquisition integration costs, gains (losses) recognized on the disposal of tangible assets, gains (losses) on debt extinguishment, discontinued operations, and other gains (losses) related to events or conditions that are not yet known. |
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Forward Looking Statements
This release contains, and
statements made by us concerning the release may contain,
forward-looking statements, including our expectations for the full-year
2017. Forward-looking statements also include statements regarding
future financial performance (including revenues, expenses, earnings,
margins, cash flows, dividends, capital expenditures and financial
condition), plans and objectives, and related assumptions. In some cases
these statements are identifiable through the use of words such as
“anticipate,” “believe,” “estimate,” “forecast,” “guide,” “expect,”
“intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,”
“will,” “would” and similar expressions. Forward-looking statements
reflect management’s current beliefs and expectations and are not
guarantees of future performance. Actual results may differ materially
from those suggested by any forward-looking statements for a number of
reasons, including, without limitation: the impact of a challenging
global economy or a downturn in served markets; the cost and
availability of raw materials including copper, plastic compounds,
electronic components, and other materials; the competitiveness of the
global broadcast, enterprise, and industrial markets; disruption of, or
changes in, the Company’s key distribution channels; volatility in
credit and foreign exchange markets; the inability to execute and
realize the expected benefits from strategic initiatives (including
revenue growth, cost control, and productivity improvement programs);
the inability to successfully complete and integrate acquisitions in
furtherance of the Company’s strategic plan; the inability of the
Company to develop and introduce new products and competitive responses
to our products; assertions that the Company violates the intellectual
property of others and the ownership of intellectual property by
competitors and others that prevents the use of that intellectual
property by the Company; risks related to the use of open source
software; the inability to retain senior management and key employees;
disruptions in the Company’s information systems including due to
cyber-attacks; variability in the Company’s quarterly and annual
effective tax rates; perceived or actual product failures; political and
economic uncertainties in the countries where the Company conducts
business, including emerging markets; the impairment of goodwill and
other intangible assets and the resulting impact on financial
performance; the impact of regulatory requirements and other legal
compliance issues; disruptions and increased costs attendant to
collective bargaining groups and other labor matters; 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, 2015, filed with the SEC on February 25, 2016. Although the content of this release represents our best judgment as of the date of this report based on information currently available and reasonable assumptions, we give no assurances that the expectations will prove to be accurate. Deviations from the expectations may be material. For these reasons, Belden cautions readers to not place undue reliance on these forward-looking statements, which speak only as of the date made. Belden disclaims any duty to update any forward looking statements as a result of new information, future developments, or otherwise, except as required by law.
About Belden
Belden Inc. delivers a comprehensive product
portfolio designed to meet the mission-critical network infrastructure
needs of industrial, enterprise and broadcast markets. With innovative
solutions targeted at reliable and secure transmission of rapidly
growing amounts of data, audio and video needed for today’s
applications, Belden is at the center of the global transformation to a
connected world. Founded in 1902, the company is headquartered in St.
Louis and has manufacturing capabilities in North and South America,
Europe and Asia.