Growth in the telecom and datacom markets and the fruit from several acquisitions pushed sales and profits up for Belden Inc. in the quarter ended March 31.
The St. Louis, Mo., wire, cable, and fiber optic component maker posted sales of $228 million, a 43% increase over the prior year's $159.6 million. Earnings reached $9.4 million compared with $1.2 million last year, which included a loss on the disposal of Belden's Cord Products Division, according to Belden's earnings report released yesterday.
Revenue increases were fueled by sales from key acquisitions made last year -- Cable Systems International, a $180 million deal --and two Siemens AG units -- Dorfler Kabel-werk GmbH and Duna Kabel Kft. -- which were bought for an undisclosed amount. Excluding the effect of these acquisitions, revenues increased 8% over the prior year.
"Growth came from both strategic acquisitions and expansion in all of Belden's served markets," said C. Baker Cunningham, chairman, president and chief executive, in a statement.
The company reported a 179% increase in sales in the quarter of products sold to the communications market, which makes up about 30% of its business. Sales of products to the networking market increased 44% in the quarter, while sales to the entertainment industry climbed 12%. Products sold to the industrial sector increased 8%.
Cunningham said the company is continuing to make improvements to its operations and leverage the recent acquisition of Corning's U.K.-based metallic cable business, which is expected to boost sales this year by $100 million.
Moving forward, Belden's top line will also be fed by the award of a long-term supply contract from SBC Communications Inc., which is expected to generate revenues of $700 million over the life of the contract, according to the company.
"Belden continues to be well-positioned to benefit from the technology revolution in communications, networking, and the electronics markets,'' Cunningham added.