Belden makeover on track

In May 2006, the board of Belden, the US-headquartered cable manufacturer, approved a strategic plan to reposition the company to be comprehensive signal solutions provider. The plan also called for a lean manufacturing drive to improve operational efficiencies, expansion in emerging markets, as well as renewed attention to product portfolio, brand and talent management.

In Singapore to provide an update on company strategy and performance, John Stroup, President and CEO, pointed to key successes from the operational, growth, and support initiatives. “We’ve strengthened the balance sheet, improved the cost structure, and expanded margins through better pricing. And we have made major acquisitions in emerging markets and higher growth businesses,” announced Stroup.

Global player

High profile purchases have included Germany’s Hirschmann Automation & Control and Lumberg Automation, and LTK Wiring of Hong Kong. These have radically changed the company’s profile from predominately cable manufacturer (92 percent of revenue) dependent on the North American market (69 percent), to a global signal transmission solutions company in which connectivity products now account for 20 percent of a US$2 billion revenue now split almost half-half between North America and the rest of the world.

In terms of technology, industrial Ethernet and wireless are spotlighted as significant growth areas. And pointing to a “war chest” of more than US$1.6 billion in available funds, Stroup said that Belden is well placed to make further acquisitions.

Prospective companies should either be quality connector or connectivity companies in the industrial space, improve Belden’s market position in fast moving geographies, or fill a vertical not yet sufficiently covered, noted Stroup.