<<NEW YORK, Aug 25 (Reuters) - Warburg Dillon Read analyst Quinten Nufer cut the firm's rating on Belden Inc. to hold from strong
buy on Tuesday, a day after Belden issued an earnings warning.
-- cut EPS estimates for 1998 to $2.05 from $2.40, and for 1999 to $2.19 from $2.62.
-- ''The expected shortfall is primarily related to Asian demand/competition problems and negative pricing and volume trends in Belden's heretofore most healthy end market -- networking cable,'' the analyst said in a research note.
-- Belden's Asian demand is down about 50 percent, with Asian sales accounting for about 5 percent of revenue.
-- European sales, which accounted for 16 percent of revenue in 1997, are also slowing as lower-priced cables from Asia pressure prices. The lower-priced products are also affecting sales in the United States.
-- ''Lastly, Canadian demand (5 percent of revenue) has weakened significantly -- about 80 percent of the cable that Belden sells into Canada is sold to the natural resources, petroleum, mining and other process industries,'' the analyst said. >> |
