Molex Inc. Reports Operating Results (10-Q)
Molex Inc has a market cap of $4.66 billion; its shares were traded at around $26.65 with a P/E ratio of 19.5 and P/S ratio of 1.6. The dividend yield of Molex Inc stocks is 2.7%.Hedge Fund Gurus that owns MOLX: Paul Tudor Jones of The Tudor Group, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns MOLX: James Barrow of Barrow, Hanley, Mewhinney & Strauss, Dodge & Cox, Arnold Van Den Berg of Century Management, Richard Aster Jr of Meridian Fund, Chuck Royce of Royce& Associates, Mario Gabelli of GAMCO Investors, Jean-Marie Eveillard of First Eagle Investment Management, LLC.
Highlight of Business Operations: On June 30, 2010 we completed a multi-year restructuring plan designed to reduce costs and to improve return on invested capital in connection with a new global organization that was effective July 1, 2007. A majority of the plan related to facilities located in North America, Europe and Japan and, in general, the movement of manufacturing activities from these plants to lower-cost facilities. Restructuring costs during fiscal 2010 were $116.9 million, consisting of $79.6 million of severance costs and $37.3 million for asset impairments.
As previously reported in our Annual Report on form 10-K for the year ended June 30, 2010, based on the results of the completed investigation, we recorded for accounting purposes an accrued liability for the effect of unauthorized activities pending the resolution of these matters including the legal proceedings reported in Note 12. We believe these unauthorized activities and related losses occurred from at least as early as 1988 through 2010, with approximately $167.4 million of losses occurring prior to June 30, 2007. The accrued liability for these potential net losses was $180.1 million as of December 31, 2010, including $14.3 million in cumulative foreign currency translation, which was recorded as a component of other comprehensive income. To the extent we prevail in not having to pay all or any portion of the outstanding unauthorized loans, we would recognize a gain in that amount. In addition, we have a contingent liability of $18.0 million for other loan-related expenses, interest expense and delay damages on the outstanding unauthorized loans.
Cumulative investigative and legal costs through December 31, 2010 were $13.0 million, including $8.3 million in the first six months of fiscal 2011.
Foreign currency translation increased net revenue approximately $9.0 million and $16.0 million for the three and six months ended December 31, 2010, respectively, principally due to a stronger Japanese yen, partially offset by a weaker euro against the U.S. dollar. The following tables show the effect on the change in geographic net revenue from foreign currency translations to the U.S. dollar (in thousands):
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