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Mar 29, 2020
Belden Q1 2020 Earnings Report
Reported results for the first quarter of 2020, impacted by the unprecedented pandemic disrupting the global economy.
Key Takeaways
Belden Inc. reported a decrease in revenue to $463.5 million compared to $500.1 million in the prior-year period. EPS totaled $0.33 compared to $0.48 in the first quarter 2019. Adjusted EPS was $0.67 compared to $0.84 in the first quarter 2019.
First quarter revenues totaled $463.5 million, compared to $500.1 million in the prior-year period.
EPS totaled $0.33 compared to $0.48 in the first quarter 2019.
Adjusted EPS was $0.67 compared to $0.84 in the first quarter 2019.
Belden is increasing the SG&A cost reduction program to $60 million from $40 million.
Belden
Belden
Forward Guidance
Belden anticipates improving demand trends in the second half of the year and looks forward to providing revenue and EPS guidance again as visibility returns.
Positive Outlook
- Strong balance sheet and liquidity position will allow Belden to successfully navigate this difficult economic environment.
- Taking appropriate steps to manage expenses and protect cash flows in the near term.
- Positioning the Company for profitable growth longer term.
- Teams have identified a number of incremental savings opportunities.
- Maintaining direct labor force and capacity levels in anticipation of improving demand trends in the second half of the year.
Challenges Ahead
- This unprecedented pandemic disrupted the global economy.
- Lack of certainty as to the duration and magnitude of the impact of COVID-19 and the economic recovery from that impact
- The timing of, and the need of the parties to satisfy various closing conditions for, the Grass Valley divestment
- The results of the Company’s impairment analysis, which could reduce EPS and adjusted EPS
- The presence of substitute products in the marketplace