| HICKORY, N.C., Nov. 16 /PRNewswire-FirstCall/ -- CommScope, Inc.
(NYSE: CTV) plans to provide a business review and outlook today at
an investor meeting beginning at 9:00 a.m. in the Millennium
Broadway Hotel in New York City.
CommScope Chairman and Chief Executive Officer Frank M. Drendel
plans to explain to investors why he believes CommScope has a
leading global position in the 'last mile' of telecommunications.
"We are excited about our long-term opportunities," Drendel will
tell investors. "During 2004, we began a new chapter in the history
of CommScope with the highly complementary addition of the
Connectivity Solutions business from Avaya Inc. We believe this
strategic acquisition created new opportunities for innovation and
growth. During 2005, we intend to build upon this acquisition,
capture additional synergy and enhance operating performance."
Other presentations will highlight CommScope's competitive
strengths, including its global capabilities, world-class cable and
connectivity solutions, technical innovation, industry-leading
research and development and operational excellence.
Financial Outlook
Jearld L. Leonhardt, Executive Vice President and Chief
Financial Officer, will tell investors that he believes CommScope
has a solid financial foundation. "After the major acquisition of
Connectivity Solutions earlier this year, we have worked diligently
to enhance liquidity and improve working capital performance. We
intend to maintain financial flexibility as we move ahead,"
Leonhardt will report.
Leonhardt also plans to provide a financial outlook for 2005.
"We expect sales of $1.2-$1.3 billion in 2005, primarily driven by
modest volume growth and anticipated price increases. Based on this
revenue outlook and assuming a stable business environment, we
believe we can achieve an operating margin of 6% or better,
excluding special charges. We expect an effective tax rate of about
30%."
Leonhardt will also tell investors that CommScope expects
depreciation and amortization charges of approximately $60 million
in 2005. In general, working capital is expected to grow along with
sales volumes. Capital spending is expected to be $30 million or
less in 2005.
Registration for the webcast is required and available from the
Investor Relations Presentations page of CommScope's website at
http://phx.corporate-ir.net/phoenix.zhtml?c=101146&p=irol-presentations
. Those wishing to listen to the Internet webcast should plan to
connect online 10-15 minutes before the start of the conference.
For anyone unable to listen to the live event, an archive event
broadcast will be available on the Investor Relations Presentations
page of CommScope's website for a limited period of time.
CommScope (NYSE: CTV) ( http://www.commscope.com ) is a world
leader in the design and manufacture of 'last mile' cable and
connectivity solutions for communication networks. Through our
SYSTIMAX(R) Solutions and Uniprise(TM) brands we are the global
leader in structured cabling systems for business enterprise
applications. We are also the world's largest manufacturer of
coaxial cable for Hybrid Fiber Coaxial (HFC) applications. Backed
by strong research and development, CommScope combines technical
expertise and proprietary technology with global manufacturing
capability to provide customers with high-performance wired or
wireless cabling solutions.
Forward-Looking Statements
This press release contains forward-looking statements
regarding, among other things, the business position, plans,
transition, outlook, margins, revenues, earnings, synergies and
other financial items relating to CommScope, and integration and
restructuring plans related to CommScope's acquisition of
substantially all of the assets and certain liabilities of
Connectivity Solutions ("the acquisition") that are based on
information currently available to management, management's beliefs
and a number of assumptions concerning future events. These
forward-looking statements are identified, including, without
limitation, by their use of such terms and phrases as "intends,"
"intend," "intended," "goal," "estimate," "estimates," "expects,"
"expect," "expected," "project," "projects," "projected,"
"projections," "plans," "anticipates," "anticipated," "should,"
"designed to," "foreseeable future," "believe," "believes,"
"think," "thinks" and "scheduled" and similar expressions.
Forward-looking statements are not a guarantee of performance and
are subject to a number of uncertainties and other factors that
could cause the actual results to differ materially from those
currently expected. The potential risks and uncertainties that
could cause actual results of CommScope to differ materially
include, but are not limited to, the ability to recover higher
material and transportation costs from our customers through price
increases; the ongoing transition, integration and restructuring
associated with the acquisition, including cost reduction plans at
the Omaha, Nebraska site of Connectivity Solutions Manufacturing,
Inc.; the impact of purchase accounting adjustments; the challenges
of achieving anticipated synergies; variability in the effective
tax rate; the ability to retain qualified employees and existing
business alliances; maintaining satisfactory relationships with
employees; customer demand for our products, applications and
services; post-closing adjustments in connection with acquisitions;
expected demand from major domestic MSOs; telecommunications
industry capital spending; ability to maintain successful
relationships with our major distributors; industry consolidation;
ability of our customers to secure adequate financing to fund their
infrastructure projects or to pay us; product demand and industry
excess capacity; changes or fluctuations in global business
conditions; competitive pricing and acceptance of our products;
changes in cost and availability of key raw materials, especially
those that are available only from limited sources; possible future
impairment charges for goodwill and other long-lived assets;
industry competition and the ability to retain customers; possible
disruption due to customer or supplier bankruptcy, reorganization
or restructuring; our ability to obtain financing and capital on
commercially reasonable terms; covenant restrictions and our
ability to comply with covenants in our debt agreements; ability to
timely comply with Section 404 of the Sarbanes-Oxley Act and
related regulations; successful operation of our vertical
integration activities; successful expansion and related operation
of our facilities; achievement of sales, growth and earnings goals;
ability to achieve reductions in costs; ability to retain and
attract key personnel; developments in technology; intellectual
property protection; product performance issues and associated
warranties; regulatory changes affecting us or the industries we
serve; any adjustments required by the Securities and Exchange
Commission in connection with its review of our public filings;
acquisition activities and the ability to integrate acquisitions;
the accounting and financial reporting impact of our stock options
and convertible debt; environmental issues; terrorist activity or
armed conflict; political instability; major health concerns and
other factors; and any statements of belief and any statements of
assumptions underlying any of the foregoing. For a more complete
description of factors that could cause such a difference, please
see CommScope's filings with the Securities and Exchange
Commission. In providing forward-looking statements, the Company
does not intend, and is not undertaking any duty or obligation, to
update these statements as a result of new information, future
events or otherwise.
SOURCE CommScope, Inc.
-0- 11/16/2004
/CONTACT: Phil Armstrong, Investor Relations, +1-828-323-4848, or Betsy
Lambert, APR, Media Relations, +1-828-323-4873, both of CommScope, Inc./
/Web site: http://www.commscope.com /
(CTV)
CO: CommScope, Inc.
ST: North Carolina
IN: CPR TLS
SU: CCA MAV ERP
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5436 11/16/2004 08:50 EST http://www.prnewswire.com
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