Molex Inc. Reports Operating Results (10-Q)
Molex is one of the leading manufacturers of electronic electrical and fiber optic interconnection products and systems; switches; value-added assemblies; and application tooling. Molex serves original equipment manufacturers in industries that include automotive computer computer peripheral business equipment industrial equipment telecommunications consumer products and premise wiring. Molex Inc. has a market cap of $3.34 billion; its shares were traded at around $19.28 with a P/E ratio of 62.2 and P/S ratio of 1.2. The dividend yield of Molex Inc. stocks is 3.2%. Molex Inc. had an annual average earning growth of 4.6% over the past 10 years. Highlight of Business Operations: During fiscal 2007, we undertook a 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 relates to facilities located in North America, Europe and Japan and, in general, the movement of manufacturing activities at these plants to other facilities. Net restructuring cost during the quarter ended September 30, 2009 was $55.9 million, consisting of $13.2 million of asset impairments and $42.7 million for employee termination benefits that were net of a $3.8 million pension curtailment gain. Restructuring costs during the three months ended September 30, 2008 were $21.8 million, consisting of $2.7 million for asset impairments and $19.1 million for employee termination benefits. The cumulative restructuring costs and related asset impairments since we announced the restructuring plan totaled $253.8 million.
formulated detailed plans for the latest additions to the restructuring actions, which included reorganization of our global product divisions. A portion of this plan involves cost savings or other actions that do not result in incremental expense, such as better utilization of assets, reduced spending and organizational efficiencies. This plan includes employee reduction targets throughout the company, and we expect to achieve these targets through ongoing employee attrition and terminations. We expect to complete the actions under this plan by June 30, 2010 with estimated annual cost savings ranging from $190 $210 million. See Note 2 of the Notes to the Condensed Consolidated Financial Statements for further discussion.
Research and development expenditures, which were classified as selling, general and administrative expense, were approximately $36.5 million, or 5.4% of net revenue, and $43.6 million, or 5.2% of net revenue for the three months ended September 30, 2009 and 2008, respectively. The expense decreased as part of cost containment activities, but remained comparable to the prior year period as a percent of revenue.
Net restructuring cost during the three months ended September 30, 2009 was $55.9 million, consisting of $13.2 million of asset impairments and $42.7 million for employee termination benefits. The cumulative expense since we announced the restructuring plan totals $253.8 million.
Other income consists primarily of net interest income, investment income and currency exchange gains or losses. We recognized exchange gains of $1.5 million and losses of $0.8 million for the three months ended September 30, 2009 and 2008, respectively.
Our order backlog on September 30, 2009 was approximately $304.2 million compared with $385.5 million at September 30, 2008. Orders for the first quarter of fiscal 2010 were $724.4 million compared with $795.9 million for the prior year period, representing the carryover impact of the significant decline in demand during the second and third quarters of fiscal 2009 due to the global economic conditions and subsequent supply chain inventory reductions.
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