Belden Inc Case

Belden INC

A202 Managerial Accounting

Justin Lowhorn

Instructor: Anita Morgan

Belden INC.

Belden INC. is a wire manufacturing company that was established in 1902 by Joseph C. Belden. It is currently in the top ten leading manufacturers of wire in the world, with factories located in Mexico, United States, Canada, and the Europeans. It specializes in the production of CATV coaxial cables, audio and video cable, as well as 50-ohm transmission cables, and deflection cables through extrusion, cabling, braiding and jacketing processes. Belden’s home office is located In Richmond, IN, where the division office is located down the street from the original factory. John Stroup, the CEO has helped the company grow the last half decade through the lean manufacturing process, which can be seen in the financial statements in the annual reports ending on December 31st of every year. Belden’s current stock price is $49.03 which has steadily risen over the past year after a very short dip in 2011.

Belden has had many rough patches due to the economic downturn; however, as it learns how to adapt its processes through lean manufacturing it has risen up against the hardship to show that there is plan of action to keep Belden a thriving company. Lately Belden has been focused on its emerging markets; it has also bought many smaller companies that were once outsourced or competition at a premium price due to economy, which is increasing Belden’s investment financials considerably.

Financial Statements

Income Statement

The 2011 financial statements of Belden give insight into the company’s financial performance currently, being that 2012 has not been released yet. Starting with the multi-step income statement, gross profit from the past two years has been $467.294 million in 2010 and $571.819 million in 2011. This show a steady increase in gross profit as this trend has repeated itself the last few years. This was done through the ammortixation of intangible assets, gains from disposable operations, lower interest expenses. But largely the implementing of lean manufacturing has led to net income from operations increasing dramatically over the last few years; 2009 showed an income from operations at only $36.37 million, 2010 showed a increase to $129.189 million, and 2011 came in strong at $187.006 million. The operating income has risen greatly; this is due to the change in the manufacturing structure, like the use of FIFO lanes, decreasing cycle time, throughout the value stream. As well as managing their dollar per labor