Belden to cut 1,800 jobs worldwide

ST. LOUIS - Belden Inc., a St. Louis-based electronics-components maker, said it plans to cut 1,800 jobs worldwide, or 20 percent of its workforce, and consolidate some manufacturing operations, as demand for its products has continued to soften.

Belden, which makes cables, connectors and other products for signal transmission, said the restructuring, announced Wednesday evening, is aimed at streamlining its manufacturing, sales and administrative functions worldwide. It wasn't clear where the manufacturing consolidations would occur, and a calls to the company weren't immediately returned.

The restructuring is expected to save $30 million next year and $50 million annually starting in 2011.

The company expects to post between $55 million and $65 million, or 85 cents to $1 per share, in restructuring charges, some in the current quarter. The charges include severance and other costs of $35 million to $40 million.

Chief Executive John Stroup blamed the company's woes on a continued softening in it major markets globally, and said that made it "necessary for us to further adjust our cost structure so that we can continue to be competitive under such conditions."

In October, Belden said it expected economic conditions to remain challenging and cut its 2008 revenue outlook.

Stroup, however, said Wednesday in a statement that "with Belden's liquidity, strong balance sheet and history of generating strong free cash flow, we are well-positioned to capture market share and successfully execute other strategic initiatives even in a challenging market."

Belden's shares gained 2 cents to $18.30 in Thursday morning trading.

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On the Net: http://www.belden.com/

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